There’s been another step toward consolidation in the recordkeeping space.
The most recent—Standard Insurance Company (a.k.a. “The Standard”) and Securian Financial Group, Inc. have announced a definitive agreement under which The Standard will acquire Securian Financial’s retirement recordkeeping business—subject to customary closing conditions, but expected to close this year.
The transaction—which excludes Securian Financial’s pension risk transfer and institutional retirement businesses—will, according to a press release, “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 firms say their recordkeeping businesses have a “complementary geographical footprint of customers and distribution partners,” and the newly combined business will provide enhanced product offerings that will expand relationships with plan sponsors and distribution partners. The firms note that 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.
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.
