Canada Life is to purchase Legal & General’s offshore business, L&G International, for an undisclosed sum.
The transaction for the business, which has assets under administration of £2.5bn, is expected to complete in Q2 2015.
L&G chief financial officer Mark Gregory says the deal is part of a long-term plan to sell non-core business.
He says: “LGII falls outside L&G’s focused strategy. This transaction is part of our ongoing disposal programme of our peripheral assets.”
The Dublin-based subsidiary formed in 2007 and offers investment and tax planning for UK, Italy, Channel Islands and Isle of Man residents.
It has over 4,000 UK offshore bond policies.
Canada Life is the European arm of Canadian company Great-West Lifeco.
Great-West Lifeco president and chief executive officer Paul Mahon says: “The proposed transaction will enhance the position of Canada Life in the UK, and give clients and professional advisers further confidence in our UK offshore business.”