Great-West Lifeco Inc. today announced that its wholly owned United Kingdom subsidiary, Canada Life Ltd. has reached an agreement with The Equitable Life Assurance Society in the UK to acquire the assets and liabilities associated with most of Equitable’s not-for-profit pension annuity business.

The transaction involves the acquisition of approximately 130,000 policies, having liabilities and supporting assets with an approximate value at Dec. 31, 2005 of $9.3 billion (pounds sterling 4.6 billion). The transaction is subject to regulatory and court approvals.

Canada Life will acquire these liabilities effective Jan. 1, 2006 by way of indemnity reinsurance. Following closing, expected in the first quarter of 2007, the liabilities and assets will be transferred to Canada Life. The actual values will depend on the asset values at the date of closing. The transaction is expected to be accretive to Lifeco earnings in 2006 and subsequent years.

“We believe this transaction represents the largest acquisition of a not- for-profit annuity portfolio in the UK,” said Raymond McFeetors, president and CEO of Great-West Lifeco.

It is Canada Life’s second such transaction in the past year. Canada Life has established expertise in the UK annuity market, and already serves more than 150,000 annuitants.

“This transaction represents a major strategic step in the continued expansion of Canada Life’s presence in the UK, and will enable Canada Life to benefit from greater economies of scale in a growing market,” McFeetors said. “Moreover, the transaction advances our strategy to capitalize on the company’s position in core European markets.”