Canada Life has announced it will buy Retirement Advantage.
Canada Life did not say how much it paid for the pension and equity release specialist, which has over £2bn in assets under management, £1.5bn of which sits in a block annuity deal.
The deal allows Canada Life to expand into offering equity release mortgages. The company said it also “reaffirms [Canada Life] commitment to the United Kingdom”.
Retirement Advantage praised the deal for providing its clients with “greater retirement protection”.
Group chief executive Craig Fazzini-Jones says: “This acquisition is a positive endorsement of the business plan we adopted following the UK pension reforms announced in 2014 that transformed our business and drove the creation of innovative retirement solutions. As we join Canada Life, we will be well positioned to build upon that success and provide greater retirement protection for our customers.”
The deal should close in the last quarter of the year.
The agreement follows a deal Legal and General struck with equity release provider Key Retirement in 2015, but does not restrict distribution to a single provider.
Under a tied distribution model, the contract allowed Key Retirement to deliver advice restricted to L&G products.