Standard Insurance Company has entered into a definitive agreement to buy the retirement plan record-keeping business of Securian Financial Group, The Standard announced in a news release Tuesday.
The acquisition is expected to close this year. The price and other terms of the deal are not being shared publicly, a spokesman for The Standard said.
The Portland, Ore.-based insurer positioned the transaction as a way to expand the scale and competitiveness of its retirement offerings in the U.S. and accelerate its diversification and growth in the retirement record-keeping business. In addition, the companies' complementary products, distribution networks and geographical footprint would help expand relationships with plan sponsors, The Standard said.
"We have been studying retirement plan growth opportunities in the U.S. market for some time, and Securian Financial stood out as a like-minded partner focused on customer-first service and deep relationships with plan sponsors and distribution partners alike," said Dan McMillan, president and CEO of The Standard, in the news release.
As of Sept. 30, The Standard had $29.3 billion in total assets under administration, while Securian Financial had $17 billion, according to the news release. Neither company is disclosing the number of plan sponsor clients they serve.
As part of the transaction, Securian Financial's employees, sales team and management supporting the record-keeping business will join The Standard. The combined retirement record-keeping businesses will operate under The Standard brand.