Great-West Lifeco Inc. subsidiary Empower Retirement has signed an agreement to buy the retirement services business of Massachusetts Mutual Life Insurance Co. in a transaction valued at about $4.4 billion.
The company says the deal will strengthen Empower’s position as the second largest player in the U.S. retirement market.
The deal follows an announcement in June that Empower would buy U.S. investment manager Personal Capital.
Great-West says the MassMutual retirement services business includes 26,000 plans with approximately 2.5 million participants and US$167 billion in assets.
In addition, Empower and MassMutual plan a partnership through which digital insurance products offered by Haven Life Insurance Agency and MassMutual’s voluntary insurance and lifetime income products will offered to Empower and Personal Capital customers.
The deal is expected to close in the fourth quarter of 2020.