Sept. 25 (Bloomberg) -- New York Life Insurance Co., the largest U.S. life insurer owned by policyholders, agreed to acquire a Dexia SA unit for 380 million euros ($512 million) as it expands its business of managing money for investors.
Dexia Asset Management oversees about $100 billion, and the transaction will boost assets under management at New York Life Investments to more than $480 billion, the New York-based company said yesterday in a statement.
The deal “demonstrates our commitment to the global asset- management business which provides important earnings diversification,” New York Life Chief Executive Officer Ted Mathas said in the statement.
Mathas is among insurance executives expanding in asset management to increase fee income. New York Life struck a deal last year to take a stake in Cornerstone Capital Management Inc.
Dexia, based in Paris and Brussels, is being wound down at the expense of French and Belgian taxpayers. The transaction is subject to regulatory approval and is expected to close around Dec. 31, according to the statement.
--Editors: Dan Reichl, David Scheer