INDIANAPOLIS – OneAmerica Financial Partners has agreed to acquire City National Bank’s San Diego retirement services record-keeping business. Terms of the agreement weren’t disclosed.
City National’s retirement business, with $6.5 billion in assets under administration, manages more than 240 plans with 40,000 participants. The bank is a subsidiary of City National Corp. (NYSE: CYN), which has $29.7 billion in assets.
“The acquisition of City National Bank’s San Diego retirement services operation will significantly expand and enhance our operations and client service capabilities,” said Scott Davison, president and chief executive officer of the companies of OneAmerica, in a statement.
OneAmerica’s retirement services businesses serve more than 10,000 plans with 680,000 participants and have more than $24 billion in retirement assets. OneAmerica and City National Bank will also enter into an alliance in which City National will sell OneAmerica retirement products and provide directed trustee services to certain OneAmerica retirement customers.
City National Bank is “one of the pioneers” in individually directed accounts, said Bill Yoerger, president, retirement services division of the companies of OneAmerica, in a statement. “This expertise, along with their focus on outstanding service to some of the country’s largest and most prestigious professional service firms, will allow the companies of OneAmerica to offer more comprehensive programs that will continue to distinguish us in the marketplace.”
In addition to retirement plans and services, the products of the OneAmerica companies include individual life insurance, annuities, long-term care and employee benefit plans.
The transaction is expected to close later this year. At that time, the business will adopt the name OneAmerica Retirement Services LLC. OneAmerica will continue to do business from the San Diego location and clients will continue to work with their current service team.
Davison, who took the helm as CEO of OneAmerica in April, told Best’s News Service earlier this year that the retirement plans business has been “a great growth business for us.”
American United Life Insurance Co., and its affiliates, The State Life Insurance Co. and Pioneer Mutual Life Insurance Co., all of which comprise the OneAmerica Group, each currently has a Best’s Financial Strength Rating of A+ (Superior).
(By Fran Matso Lysiak, senior associate editor, BestWeek: fran.lysiak@ambest.com)
The post OneAmerica Financial Partners to Acquire City National Bank’s San Diego-Based Retirement Services Business appeared first on Wink.