Canada Life Group has reached an agreement to acquire Legal & General International (Ireland) Limited (LGII), its parent company Great-West Lifeco Inc announced.
LGII is a subsidiary of Legal & General Group based in Dublin, providing investment and tax planning focussed primarily on the UK high net worth market.
LGII has over 4,000 UK offshore bond policies with £2.5bn of assets under administration.
Mark Gregory, group chief financial officer at L&G, said: "LGII falls outside L&G's focused strategy. This transaction is part of our ongoing disposal programme of our peripheral assets."
The deal is expected to be finalised in the second quarter of 2015 and is subject to regulatory approval and Great-West Lifeco said it will not have a "material impact" on the insurer's financial results.
Paul Mahon, president and chief executive officer of Great-West Lifeco, said: "The proposed transaction will enhance the position of Canada Life in the UK, and give clients and professional advisers further confidence in our UK offshore business."
"Canada Life is a highly regarded offshore bond provider and has been selling into the UK for over 27 years through its offshore companies, based in the Isle of Man and, more recently, also based in Dublin."
