John Hancock Financial will acquire New York Life’s Retirement Plan Services business, a move that will increase John Hancock’s expansion into the mid- and large plan market and increase its assets under administration by $50 billion, bringing total assets to about $135 billion.
As a part of the deal, New York Life has agreed to reinsure 60 percent of certain John Hancock life insurance policies, according to a release from Manulife Financial Corp., the Canadian-based parent of John Hancock.
The combined RPS businesses means John Hancock now works with more than 55,000 plans covering 2.5 million participants, moving the company into the top 15 of mid-size plan providers, and solidifying it as the leader in the small plan market.
“John Hancock’s and New York Life’s RPS businesses both enjoy strong service cultures, philosophies and a commitment to quality. We are very pleased that both companies’ RPS business locations, service teams, systems and relationships will remain in place to support the top quality client experience as it exists today,” said Peter Gordon, president of John Hancock RPS.
The transaction is expected to close in the firs half of 2015, subject to regulatory approval. Terms of the transaction weren’t disclosed.
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Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
