Great-West Lifeco announced today that its British subsidiary has reached a deal to acquire the payout annuity business of Phoenix and London Assurance Ltd. at a price to be determined this fall.

Subsidiary Canada Life Ltd. struck the deal with the unit of Resolution Life Group. “The actual value of the transaction will depend on the asset values at the date of closing” in the fourth quarter, the Great-West said in a release. “The transaction is expected to be accretive to Lifeco earnings in 2005 and subsequent years.”

The block of business includes about 58,000 annuity policies, almost doubling the subsidiary’s current annuity business, Great-West said.

At the end of 2004, the value of the assets and liabilities was 2.18 billion pounds or $5.1 billion.

“This acquisition advances our strategy to capitalize on the company’s position in core European markets,” Great-West CEO Raymond McFeetors said.

Great-West said it will begin to assume the risk effective July 1, 2005. Final closing is expected to be in the fourth quarter, subject to regulatory and legal approvals.