New York Life Investment Management will sell its New York Life Retirement Plan Services business, excluding the stable value business, to John Hancock Financial, said NYLIM spokeswoman Sarah Lazarus.
The deal is expected to close sometime in the first half of 2015. Terms of the transaction were not disclosed.
As part of the deal, John Hancock will merge New York Life’s business with John Hancock Retirement Plan Services. The combined business will cover 55,000 retirement plans and more than 2.5 million participants across the U.S.
This acquisition will increase John Hancock’s defined contribution plan assets under administration by about $50 billion, to $135 billion.
New York Life’s stable value business, which is backed by the parent company, will remain at New York Life as a division of institutional annuities. The business will be named Stable Value Investments and be overseen by Alison Micucci, chief administrative officer and head of group annuities.