January 25, 2019
[Unofficial Translation]
Protective Life Enters Agreement with Great-West
to Reinsure Individual Life Insurance and Annuity Business
Protective Life Corporation (“Protective”), a wholly owned U.S. subsidiary of Dai-ichi Life Holdings, Inc. (the
“Company”; President: Seiji Inagaki), has reached an agreement under which its wholly owned subsidiaries,
Protective Life Insurance Company (“Protective Life”), and Protective Life & Annuity Insurance Company
(“PLAIC”), will acquire via reinsurance substantially all of the individual life insurance and annuity business of
Great-West Life & Annuity Insurance Company (“GWL&A”), Greenwood Village, Colorado, US. The transaction
is subject to the receipt of regulatory approvals and satisfaction of customary closing conditions, and is expected to
close in the first half of 2019. Protective has strong acquisition capabilities, in addition to strength in traditional life
insurance and individual annuity business. Since joining the Dai-ichi Life Group (“Group”) in February 2015,
Protective has completed three acquisitions, including the acquisition via reinsurance of a block of term life
insurance from Genworth Financial, Inc. in 2016, the acquisition of United States Warranty Corp. in 2016, and the
acquisition via reinsurance of substantially all of the individual life and annuity business from Liberty Life
Assurance Company of Boston.
This is the 57
th
and largest transaction in Protective’s history, and it is expected to further enhance the
profitability of Protective.
The Company considers Protective to be the Group’s growth platform in North America, and continues to aim for
further growth and profit enhancement within the region, through both acquisitions and organic growth in its retail
sales.
＜Overview of the Acquisition＞
Acquisition Type
Reinsurance
Acquisition Target
Bank-owned and corporate-owned life insurance, single premium life insurance, individual
annuities, and a portion of Great-West’s closed block life insurance and annuities. The transaction
includes business written by GWL&A, Great-West Life & Annuity Insurance Company of New
York and the U.S. branches of GW&LA’s affiliates, The Canada Life Assurance Company and
The Great-West Life Assurance Company.
Number of Policies
Approx. 240,000
(as of September 30, 2018)
Reserve
(Based on US-Statutory)
Approx. $20.0 billion (Approx. ¥2,220 billion）
(as of September 30, 2018)
Estimated Total Invested
Capital, subject to price
adjustment
Approx. $1.2 billion (Approx. ¥130 billion)
* The price includes the ceding commission paid to GWL&A and statutory capital and surplus, etc.
