Great-West Lifeco Inc.’s U.S. subsidiary, Denver-based Great-West Life & Annuity Insurance Co. has entered into an agreement to acquire an 80% majority interest in Benefit Management Corp., whose principal subsidiary is Allegiance Benefit Plan Management, Inc., a Montana-based third-party administrator of employee health plans. The existing majority shareholder will retain a 20% interest in Benefit Management Corp.

Lifeco expects the transaction will be accretive to earnings in 2007 and subsequent years.

The transaction will add almost 90,000 medical members to Lifeco’s Great-West Healthcare division. It includes Allegiance’s physicians and hospitals network, as well as Benefit Management Corp.’s other subsidiaries. These include a new company that was created to sell fully-insured health plans in Montana, and a company that provides medical management services, primarily in Montana.

Allegiance is the leading medical administrator for large employer groups in Montana and has the second largest overall market share among health plans in the state.

“The transaction includes an attractive provider network, which will further enhance Great-West Healthcare’s strong provider network position within Montana and its surrounding states. This is also an excellent growth opportunity within the fully insured marketplace,” said Raymond L. McFeetors, president and CEO of Great-West Lifeco Inc.

The Allegiance companies will retain their names and operate as subsidiaries of Great-West Life & Annuity, with management and service staff remaining in place.

“We look forward to working with Allegiance to continue improving on what is already a strong position in Montana, and expanding the products and solutions we bring to employers throughout the state,” said Rick Rivers, executive vice president, Great-West Healthcare.

The acquisition of Benefit Management Corp.’s insurance company subsidiaries is subject to regulatory approval. The transaction is expected to close in the second quarter of 2007.