New York, NY, United States (4E) – New York Life Insurance Co. announced its acquisition of a Dexia SA unit for 380mn euros ($512mn) as the life insurer seeks to expand its asset management business.
The deal, which was disclosed late Tuesday, came two months after the discussions to sell Dexia Asset Management (DAM) to Hong Kong-based GCS Capital collapsed. New York Life, owned by policyholders, became the favored bidder last week after a second auction.
DAM manages around $100bn in investors’ money, and the sale will boost assets that New York Life oversees, currently more than $480bn, according to the statement by the New York-based company.
The transaction is the final major sale planned by Dexia, which is being wound down after incurring heavy losses due to the euro zone debt crisis and the credit crunch.
Dexia said the deal is still subject to regulatory approvals, and it will hold back publication of the sale’s impact to its financial situation until the transaction is complete, which is expected to be before the end of this year.
New York Life, the largest mutual life insurance firm in the U.S., traces its history going back to 1845. Last year, the company struck a deal that acquired a stake in Cornerstone Capital Management Inc.