Manulife Financial’s (MFC) The Manufacturers Life Insurance has completed the acquisition of Canada-based operations of Standard Life, for around $4bn in cash.
The acquisition will add around 1.4 million new customers and will move the group’s retirement business to number two in Canada, noted Manulife.
Manulife president and CEO Donald Guloien said: "Standard Life allows us to significantly increase our presence in Quebec, and dramatically increases our scale in a number of highly strategic lines of business.
"Standard Life, in combination with the recently announced acquisition of New York Life’s Retirement Plan Services business in the US, grows our global retirement plan business by about $80bn."
The deal expands Manulife’s operations, including segments such as Group Benefits, Group Retirement, several areas of Asset Management and Investment Risk Oversight, as well as Liability-Driven Investing.
In addition, the acquired business adds around $6bn in assets under management (AUM) to Manulife’s Canadian mutual fund business.
ManuLife senior executive vice-president and chief investment officer Warren Thomson said: "This transaction also includes a collaboration agreement which builds on our already established and successful wealth and asset management partnership with Standard Life Investments."
Standard Life, which has around 2000 employees and 1.4 million customers, is said to be the fifth largest life insurer in Canada.
The company provides long term savings, investment and insurance solutions to the Canadian market, with around $52bn of assets under management.
Image: Head office of Manulife on Bloor Street East in Toronto. Photo: courtesy of Skeezix1000.