GREENSBORO, N.C. - Jefferson Pilot Corporation today announced that it has agreed to acquire the U.S. group life, disability and dental business of The Canada Life Assurance Company, an indirect subsidiary of Great-West Lifeco Inc. The reinsurance transaction is expected to close during the first quarter of 2004, following regulatory approvals. Jefferson Pilot will be making a commitment of approximately $200 million to the business, and the transaction is expected to provide Jefferson Pilot modest earnings accretion over the next 12 months after financing and transition costs, and to be more accretive in following years.
The Atlanta-based business will become part of Jefferson Pilot's Benefit Partners group insurance operation, which is based in Omaha, Neb. As a result of the transaction, on a pro forma basis the combined operations would rank seventh in new sales of group life insurance, sixth in long-term disability insurance sales and fifth in short-term disability insurance sales, based on third quarter 2003 LIMRA rankings. Following the acquisition, Jefferson Pilot will be positioned with approximately $1 billion of group life, disability and dental insurance premium, one-third of which is from the acquisition.
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