Guardian gets out (of the 401k business—that is).
Lincoln, Nebraska-based Ameritas Life Insurance announced Thursday that it has signed a definitive agreement to acquire the 401(k) plan business of The Guardian Insurance & Annuity Company.
Ameritas said the reason for the purchase was to deliver on “a key component of the company’s strategy – the commitment to grow its retirement plans business.”
The acquisition provides Ameritas the opportunity to further build business scale, enter into a new strategic distribution relationship and deepen sales efforts in existing distribution channels.
“This transaction reinforces the commitment of Ameritas to helping business owners and their employees plan and prepare for a more rewarding retirement,” according to the company. “At the close of the transaction, the retirement plans division will have assets under administration in excess of $10 billion.”
“Ameritas is excited to enter into an agreement with Guardian, who shares the mutual values of superior customer service and building strong business relationships with financial professionals dedicated to the 401(k) market,” Bret Benham, Ameritas senior vice president of retirement plans, said in a statement. “We see this transaction as an opportunity to build on an exceptional legacy of success and add even greater value to their agents, advisors, plan sponsors and participants. Our organizations are committed to working together to assure a smooth transition, and even more importantly, grow a brighter future for the customers who trust us with their retirement savings.”
The retirement plans division of Ameritas provides retirement plan investment and administration services to more than 3,000 businesses and public entities nationwide. Retirement plan clients range from the single life sole proprietor to the large corporate, non-profit and governmental employers.
Terms of the transaction were not disclosed, but it’s subject to regulatory approval.