Annuity specialist Retirement Advantage has been bought out by Canada Life for an undisclosed sum.
Retirement Advantage, which also operates in the equity release market, has more than 30,000 customers and more than £2bn in assets under management. This includes a £1.5bn block of in-payment annuities.
Canada Life UK executive vice-president and chief executive Doug Brown said: “Canada Life has operated in the UK since 1903 and is a highly regarded provider of retirement income, investment and employee protection solutions.
“This transaction enhances our position and broadens our product suite to include equity release mortgages.”
Retirement Advantage was formed in 2015 when funds managed by TDR Capital merged the retirement income and equity release divisions of MGM Advantage and Stonehaven.
Retirement Advantage group chief executive Craig Fazzini-Jones said: “This acquisition is a positive endorsement of the business plan we adopted following the UK pension reforms announced in 2014 that transformed our business.
“As we join Canada Life, we will be well positioned to build upon that success and provide greater retirement protection for our customers.”
Canada Life Group is wholly owned by international financial services holding company Great-West Lifeco. President and chief executive Paul Mahon said the acquisition reaffirmed the company’s commitment to the UK market.
The business said the deal is expected to close in the fourth quarter and is subject to regulatory approval. Sign off from the regulator is likely to take between three and six months.
J Towler (PA)