Standard Insurance Company announced this week that it will acquire Securian Financial Group’s record keeping business. The transaction is expected to close by year-end.
Based in Portland, Ore., The Standard offers retirement plans for small and mid-sized businesses. Securian Financial, headquartered in St. Paul, Minn., offers a complementary lineup of defined contribution and defined benefit plan products and services. The acquisition is designed to help expand the scale and competitive position of The Standard’s US retirement plan business and accelerate the growth and diversification of its retirement plan record keeping segment.
The new business will focus on providing enhanced products and services designed to expand relationships with plan sponsors and distribution partners. The companies’ combined geographic presence across the US will deliver additional growth opportunities.
“We have been studying retirement plan growth opportunities in the US 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.”
Both companies have strong reputations in the retirement services industry, and are known for their award-winning customer service, deep expertise in retirement plan record keeping and a shared focus on fiduciary protections and responsibilities.
The combined retirement record keeping business will operate under The Standard brand, and include Securian Financial’s retirement solutions employees, management, client relationships and distribution networks. The transaction does not include Securian Financial’s pension risk transfer and institutional retirement businesses.
“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.”
“The 401(k) record keeper industry continues to consolidate as it becomes harder and more expensive to compete,” said Fred Barstein, JD, C(k)P, and founder of The Retirement Advisor University, The Plan Sponsor University, and 401kTV. “This acquisition makes sense for both firms. Post-pandemic, expect to see many more.”