John Hancock, the US arm of Canada-based financial services firm and insurance provider Manulife, is to acquire New York Life's retirement plan services business in a move that Manulife believes will boost its wealth and asset management businesses globally.

John Hancock, the US arm of the Canada-based financial services firm and insurance provider Manulife, is to acquire New York Life's retirement plan services business in a move that Manulife believes will boost its wealth and asset management businesses globally.

The transaction is expected to close in the first half of 2015, subject to regulatory approvals and other conditions. The terms were not disclosed.

“This transaction, similar to our recently announced acquisition of Standard Life's Canadian operations, will significantly increase our retirement plans business overall,” said Donald Guloien, president and chief executive of Manulife.  “When completed, these transactions will each accelerate our strategy to grow our wealth and asset management businesses around the world.” (Manulife has principal operations in Canada, the US and Asia.)

The combined retirement planning services businesses will consist of approximately $135 billion in assets under administration, 55,000 retirement plans and 2.5 million plan participants. 

Meanwhile, New York Life - the largest mutual life insurance company in the US - has agreed to assume, on a reinsurance basis, 60 per cent of certain John Hancock life insurance policies.  John Hancock will continue to service the policies and there will be no change in contract terms or policyholder benefits. New York Life provided information on this transaction in a separate news release yesterday. This move will redirect capital to "higher growth, higher return businesses," Manulife said.