- The transaction combines the recordkeeping business of two providers with award-winning customer service, deep expertise in retirement plan recordkeeping and a shared focus on fiduciary protections and responsibilities
- The combined retirement recordkeeping businesses will operate under The Standard brand and include Securian Financial’s retirement solutions employees, management, client relationships and distribution networks
- The companies’ recordkeeping distribution networks and suite of products are highly complementary and, together with a combined geographic presence across the U.S., will enhance future growth opportunities
PORTLAND, Ore. & 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 and 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.
About The Standard
The Standard is a family of companies dedicated to helping customers achieve financial well-being and peace of mind. In business since 1906, we are a leading provider of financial protection products and services for employers and individuals. Our products include group and individual disability insurance, group life, dental and vision insurance, voluntary (employee-paid) benefits, absence management services, and retirement plans and annuities for employers and individuals. For more information about The Standard, visit standard.com or follow us on Facebook, Twitter or LinkedIn.
The Standard is the marketing name for StanCorp Financial Group, Inc., and its subsidiaries. StanCorp Equities, Inc., member FINRA, wholesales a group annuity contract issued by Standard Insurance Company and a mutual fund trust platform for retirement plans. Standard Retirement Services, Inc., provides financial recordkeeping and plan administrative services. Investment advisory services are provided by StanCorp Investment Advisers, Inc., a registered investment advisor. StanCorp Equities, Inc., Standard Insurance Company, Standard Retirement Services, Inc., and StanCorp Investment Advisers, Inc., are subsidiaries of StanCorp Financial Group, Inc., and all are Oregon corporations.
About Securian Financial
At Securian Financial, we’re here for family. And we’re here because of it. We’re guided by our purpose of helping customers build secure tomorrows. Since 1880, we’ve been building a uniquely diversified company that has outlasted economic ups and downs while staying true to our customers. We provide insurance, investment and retirement solutions that give families the confidence to focus on what’s truly valuable: banking memories with those who matter most. For more information about Securian Financial, visit securian.com or follow us on Facebook, Twitter or LinkedIn.
Securian Financial is the marketing name for Securian Financial Group, Inc., and its subsidiaries. Securian Financial’s retirement plan products are offered through a fixed annuity contract issued by Minnesota Life Insurance Company or Securian Life Insurance Company, Securian Financial Group subsidiaries.