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Great-West Lifeco, one of Canada’s largest insurance companies, is looking to sell a collection of insurance contracts that could be worth as much as US$2 billion, according to reports from The Globe and Mail.
If the deal moves forward, it would become one of the largest divestments of such insurance books in recent memory, though it also follows a pattern of insurance companies offloading these blocks, which are made up of policies in areas where no new business is being underwritten, as a way to have more cash to invest in profitable areas of their operations.
The report is based on confidential sources, and Great-West declined to comment on the news.
The portfolio of insurance business that’s potentially up for grabs includes structured settlements, payout annuities, and corporate or bank-owned life insurance, according to The Globe. Other insurance and financial companies have shown interest in the policies, and management at Great-West already held meetings with prospective bidders in August, said a source cited in the article.
