GREENWOOD VILLAGE, Colo., Dec. 8 /PRNewswire/ -- Great-West Life & Annuity Insurance Company ("GWL&A") today announced that the Board of Directors of The Great-West Life Assurance Company ("GWL"), its Canadian parent company, has approved a corporate reorganization. Under the reorganization, GWL&A will no longer be a subsidiary of GWL, but continues to be indirectly owned by Great-West Lifeco Inc. ("Great-West Lifeco"). The reorganization will be effective December 31, 2000, subject to receiving regulatory approval. "The reorganization completes a process started many years ago, of establishing separate and distinct operations in Canada and the U.S., to better focus on the respective markets," said Raymond L. McFeetors, Co-President and CEO of Great-West Lifeco, and President and CEO of GWL. "This reorganization will help place GWL&A on an equal footing with its competitors in the U.S.," said William T. McCallum, Co-President and CEO of Great-West Lifeco, and President and CEO of GWL&A. The reorganization will not affect the existing financial strength and claims paying ability ratings of GWL&A and GWL. It is expected that Fitch Inc., A.M. Best Company, Moody's Investors Service and Standard & Poor's Corporation will confirm their ratings. GWL&A's U.S. holding company, GWL&A Financial Inc., and the Great-West Life & Annuity Insurance Capital I Subordinated Capital Income Securities, are rated by Moody's and Standard & Poor's; it is expected that these ratings will also be confirmed. The reorganization was approved after a full review by GWL's Board of Directors on the unanimous recommendation of a Special Board Committee, following the Committee's study of the proposed reorganization. As part of this process, the Committee obtained reports from an independent actuary and the appointed actuaries of GWL&A and GWL. The reports state that the reorganization will not affect benefits, costs or service for clients. In addition to its leadership position in the employee benefits market, GWL&A is a leader in the defined contribution retirement services market with an emphasis on public and non-profit groups. GWL&A serves more than 3.7 million Americans and has assets in excess of $28 billion. GWL&A, GWL and Great-West Lifeco are members of the Power Financial Corporation group of companies.
SOURCE Great-West Life Assurance Company