Toronto, Canada (4E) – Manulife Financial Corp., Canada’s largest life insurer, said on Wednesday that it will purchase the Canadian operations of British insurer Standard Life PLC for around 4bn Canadian dollars ($3.67bn), a move that will increase its exposure in Quebec.
The transaction includes the Standard Life’s investment management, individual and group insurance and long-term savings and retirement business. Standard Life, which has strong presence in the province of Quebec, is Canada’s fifth-largest life insurer with a strong 1.4 million customers and 2,000 employees.
The sales come after the Edinburgh, Scotland-based Standard Life put its Canadian life insurance business up for auction a few months ago. The deal is expected to be finalized in the first quarter next year.
A major part of the deal for Standard Life is its agreement with Manulife to distribute some of Standard Life’s funds into the U.S., Canada and Asia, where Manulife also has a huge wealth management business.