Great-West Insurance to Acquire Lincoln National
ENGLEWOOD, Colo. (AP) _ Great-West Life & Annuity Insurance Company on Thursday announced plans to acquire Lincoln National Corp.’s $1.2 billion group insurance portfolio.
Officials from Great-West, whose clients include Domino’s Pizza and the state of Wyoming, said the acquisition would make the company more competitive, and would mean the hiring of hundreds more employees.
Great-West, which does business in all states except New York, said the deal would boost its ranking from 13th to 10th in the group, life and health insurance business.
Group coverage makes up about 70 percent of Great West’s business, MacLennan said Alan D. MacLennan, executive vice president of Great-West’s employee benefits division.
The acquisition is subject to approval by Great-West’s board of directors. A purchase price was not disclosed.
Lincoln National, based in Fort Wayne, Ind., is among the 10 largest publicly held companies involved in insurance.
In connection with the Great-West acquisition, TakeCare Corp., a California Health Maintenance Organization, is acquiring Lincoln National’s 300,000- member HMO businesses.
Great-West spokeswoman Pamela Parker said Lincoln National is retaining its insurance coverage of businesses with fewer than 50 employees.
The portion of Lincoln National being acquired by Great-West includes about 2,200 group life and indemnity health clients, or about 800,000 individuals.
MacLennan said about a fourth of new people hired at Great-West would work in the Denver area, and the company would look at hiring some of Lincoln National’s employees.
Great-West has more than 4,000 group life and health clients representing about 1.1 million people, MacLennan said. Officials said annual premiums total about $2 billion.
In 1989, Great-West acquired Lincoln National’s Florida business and the group coverage business of Crown Life Insurance Co.
MacLennan said the current acquisition would be the largest Great-West has made.