DENVER, April 29 /PRNewswire/ -- Great-West Life & Annuity Insurance
Company today announced it has entered into a definitive agreement to acquire
Anthem Health & Life Insurance Company (AHLIC) of Piscataway, N.J.
    The AHLIC acquisition will provide Great-West Life & Annuity with an
additional $975 million of equivalent premium income, and it will add
450,000 new medical members to its current 1.7 million membership.  This
represents approximately a 25 percent increase in group life and health
business.  Great-West Life & Annuity will operate AHLIC as a wholly owned
subsidiary with a separate sales organization, but will gradually combine
certain administrative support functions.
    The purchase price will be based on the adjusted book value of AHLIC upon
closing, currently estimated to be approximately $100 million.  The
transaction, which was approved by both the boards of directors of Great-West
Life & Annuity and Anthem, Inc., is subject to regulatory approvals.  It is
intended that the acquisition will close on June 30, 1998.
    A subsidiary of Anthem, Inc., AHLIC provides a variety of life, medical,
disability and dental products to small- and medium-sized businesses
nationwide.
    "With the addition of AHLIC, we are accelerating our growth in a highly
attractive segment of the employer market," said Bill McCallum, president and
CEO.  "This acquisition provides economies of scale in both our home office
and in our One Health Plan subsidiary, and significantly expands our sales
distribution network."
    Jim Motz, executive vice president, employee benefits of Great-West Life &
Annuity, noted that acquisitions are an important element of Great-West's
growth strategy.  "This is an extremely good fit for us in terms of size,
products and systems.  The purchase of AHLIC will increase our membership in
key geographical areas, allowing us to continue offering our customers
competitive employee benefit products.
    AHLIC customers will now be able to integrate other high-demand employee
benefit products including our 401(k) plans and flexible spending accounts."
    AHLIC has approximately 1,200 employees and conducts business in 49 states
and the District of Columbia with a significant concentration of its business
in Texas, Florida, California, New Jersey and Georgia.
    Great-West Life & Annuity Insurance Company, with 5,300 employees,
provides a full range of group life, health and financial products to
2.7 million Americans.  The company is also a leader in administering
tax-qualified annuities for public/non-profit pension customers.
    Great-West Life & Annuity Insurance Company is an indirect subsidiary of
Great-West Lifeco Inc., a member of the Power Financial Corporation group of
companies.  In Canada, Lifeco's subsidiaries, The Great-West Life Assurance
Company and the London Life Insurance Company, serve the financial security
needs of more than 8 million Canadians.  In the United States, Great-West Life
& Annuity Insurance Company is a leader in providing employee benefits for
small- to mid-sized corporations, and in meeting the retirement income needs
of employees in the public/non-profit sector.
    At a Glance
    -- Great-West Life & Annuity Insurance Company of Englewood, Colo., is
       a wholly owned subsidiary of the Great-West Life Assurance Company, the
       largest Canadian stock life insurance company.
    -- The company is part of the $52.8 billion Great-West family of companies
       and is licensed to do business in 49 states, the District of Columbia,
       Puerto Rico and Guam.
    -- The Great-West companies are stock life insurance companies, which
       have more than 100 years of experience in meeting the security needs of
       consumers throughout the U.S.
    -- Great-West Life & Annuity is among the largest insurance companies
       in the U.S. serving more than 1.7 million healthcare members and
       1 million pension plan participants.

    1997 Financial Highlights
    -- Net Income -- $158.8 million
    -- Premium Income, Annuity Deposits and ASO Premium Equivalents --
       $6.1 billion
    -- Total Assets -- $22.1 billion

    Stock Performance
    -- Great-West Lifeco -- Canadian holding company for Great-West Life
       companies.
       (Toronto Stock Exchange -- Canadian dollars)
       52-week high            $46.00
       52-week low             $21.60
       Current price           $43.50

    Current Ratings
    -- A.M. Best Company                     A++ (Superior)
    -- Standard & Poor's Corporation         AA+ (Excellent)
    -- Duff & Phelps                         AAA (Highest)
    -- Moody's Investors Service             Aa2 (Excellent)
    -- Ranked in the top 2 percent of all U.S. life insurers in terms of
       assets.

    Corporate Officers
    -- William T. McCallum, President and CEO
    -- James D. Motz, Executive Vice President, Employee Benefits
    -- Mitchell T.G. Graye, Sr. Vice President and Chief Financial Officer
    -- Douglas L. Wooden, Executive Vice President, Financial Services

Link to this page: