Great-West Lifeco Inc. announced today that its U.S. subsidiary Great-West Life & Annuity Insurance Co. has completed the sale of its health care business, Great-West Healthcare.

A subsidiary of CIGNA Corporation bought the healthcare business for US$1.5 billion in cash and is also retaining an estimated US$750 million representing the amount of equity invested in the healthcare business.

“Great-West Lifeco has been pursuing a strategy to expand its financial services business in the United States, and this transaction—along with our acquisition in 2007 of Putnam Investments—is a major strategic step forward,” said Raymond McFeetors, president and CEO of Great-West Lifeco. “Going forward in the U.S., Lifeco will focus on the financial services business, and in particular, asset accumulation, asset administration and fund management.”

The deal was announced in November of last year. Goldman, Sachs & Co. acted as Great-West Life & Annuity’s financial advisor for the transaction, and Dewey & LeBoeuf LLP acted as legal counsel.

Great-West Healthcare is a medical, dental, vision, life and disability coverage provider for about 4,000 employer groups and 1.9 million individuals in the U.S., according to the company.

Denver-based Great-West Life & Annuity Insurance Co. is a wholly owned subsidiary of Great-West Lifeco Inc. As the firm is not licensed to do business in New York, products are sold in New York by its subsidiary, First Great-West Life & Annuity Insurance Co. out of White Plains, N.Y.

After payment of taxes and write-offs associated with intangibles and certain other assets of the business, Great-West Lifeco has said it will have approximately US$1.6 billion that will be used to repay bridge financing associated with the acquisition of Putnam Investments, LLC in August of last year.

Lifeco and its companies are members of the Power Financial Corporation group of companies and according to today’s release, have more than $394 billion in assets under administration.