Canada Life has completed the acquisition of Retirement Advantage to help its drive into UK’s growing equity release and retirement markets.
The deal, which was for an undisclosed fee and which was announced in the summer, sees Canada Life add around 30,000 pension and equity release customers to its book, as well as over £2bn of assets under management, including a £1.5bn block of in-force annuities.
Retirement Advantage CEO Craig Fazzini-Jones joins Canada Life UK as its chief operating officer.
This latest step in the consolidation of the annuity market means the only current player are Aviva, Canada Life and Legal & General for standard and enhanced rates, Scottish Widows and Hodge Lifetime for standard rates and Just Retirement for enhanced rates only.
Nine providers have pulled out of the market or merged with other providers in recent years – Aegon, LV=, Partnership, Prudential, Standard Life, Friends Life, Reliance Mutual, B&CE and Retirement Advantage.
Canada Life UK executive vice-president and CEO Doug Brown says: “We’re delighted the acquisition of Retirement Advantage has been concluded. Canada Life holds leading positions in many of our chosen markets. With the acquisition of Retirement Advantage, we are well positioned to build on our combined skills and experience to become a leader in the broader retirement market.”
Paul Mahon, president and CEO of Great-West Lifeco, which wholly owns The Canada Life Group (U.K.) Limited, says: “This transaction strengthens Canada Life’s scale and capabilities in the growing United Kingdom retirement income market, and further strengthens Canada Life’s position as a leading insurer in the UK.”
Fazzini-Jones says: “We join Canada Life at an exciting time as the retirement market continues to evolve. With ambitious plans, innovative products and a financially strong parent we are in a good position to support advisers and help their clients while delivering value to the Canada Life group.”