Manulife Financial Corp to buy New York Lifes retirement plan services business

TORONTO — Manulife Financial plans to acquire New York Life’s retirement plan services business, as the Toronto-based insurance company strives to expand its wealth management segment globally.Manulife says it will make the purchase through its U.S. division, John Hancock Financial, for an undisclosed amount.Meanwhile, New York Life will assume 60% of certain John Hancock life insurance policies, by way of reinsurance.The deal is expected to close in the first half of 2015, subject to regulatory approvals.Manulife says the deal will increase John Hancock’s RPS assets under administration by about 60%.Manulife Financial Corp chief says he won’t back down in face of calls for new guidanceSuccess of ‘Made in Canada’ deals bodes well for ManulifeThe combined RPS businesses will have around US$135 billion in assets under administration, 2.5 million retirement plan members and 55,000 retirement plans.“Manulife is a major player in the pensions business in Canada, the United States, Hong Kong and Indonesia,” Manulife president and CEO Donald Guloien said in a statement.“This transaction, similar to our recently announced acquisition of Standard Life’s Canadian operations, will significantly increase our retirement plans business overall. When completed, these transactions will each accelerate our strategy to grow our wealth and asset management businesses around the world.”

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