PORTLAND, Ore. and ST. PAUL, Minn.--(BUSINESS WIRE)--Standard Insurance Company (“The Standard”) and Securian Financial Group, Inc. (“Securian Financial”) today announced a definitive agreement under which The Standard will acquire Securian Financial’s retirement recordkeeping business. The acquisition is subject to customary closing conditions and is expected to close this year.
The Standard and Securian Financial are leaders in customer-centric retirement recordkeeping administration, compliance and fiduciary services. The Standard, founded in 1906 and headquartered in Portland, Ore., has offered retirement plans since 1982 with an emphasis on small to mid-sized plans. Securian Financial, founded in 1880 and headquartered in St. Paul, Minn., offers a similar suite of defined contribution and defined benefit products and services and is equally recognized by industry publications, financial professionals and plan sponsors for excellent customer service and fiduciary services.
The transaction—which excludes Securian Financial’s pension risk transfer and institutional retirement businesses—will significantly expand the scale and competitive position of The Standard’s retirement offerings in the U.S. and will accelerate its diversification and growth in the retirement recordkeeping segment. As of Sept. 30, 2022, Securian Financial retirement plans served companies of all sizes with $17 billion in total assets under administration, compared to $29.3 billion for The Standard.
The two companies’ recordkeeping businesses have a complementary geographical footprint of customers and distribution partners. The newly combined business will provide enhanced product offerings that will expand relationships with plan sponsors and distribution partners. Securian Financial’s employees, sales team and management who supported the recordkeeping business will be welcomed to The Standard following the close of the transaction.
“We have been studying retirement plan growth opportunities in the U.S. market for some time, and Securian Financial stood out as a like-minded partner focused on customer-first service and deep relationships with plan sponsors and key distribution partners alike,” said Dan McMillan, president & CEO of The Standard. “We look forward to a bright future and to welcoming Securian Financial’s Retirement Solutions employees, sales team and management to The Standard.”
“This transaction allows Securian Financial to increase our strategic focus on meeting the rapidly changing expectations of customers and distributors and accelerate growth in our priority markets,” said Chris Hilger, Securian Financial’s chairman, president and CEO. “For more than 90 years, our dedicated retirement plan recordkeeping employees have helped employers, plan sponsors and participants build secure tomorrows. They will have a great new home with The Standard, a company that we respect and that has growth plans in this market.”
“I have long respected the Securian Financial team as a competitor, and as we have learned more about the depth of their expertise and customer-centric approach, I am excited at the capabilities and growth opportunities presented by this combination of talent,” said AJ Ijaz, vice president of the Asset Management Group at The Standard. “Our similar values and complementary geographical presence and product offerings will accelerate The Standard’s goal of providing exceptional retirement solutions and customer service for plan sponsors, participants and distribution partners.”
PJT Partners is acting as financial advisor and Locke Lord LLP is acting as legal advisor to The Standard. Goldman Sachs & Co. LLC is acting as financial advisor and Eversheds Sutherland is acting as legal advisor to Securian Financial.