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