(March 21- 15:40 ET) – Canada Life Assurance Co. has entered a strategic alliance with Ohio National Financial Services for the sale and servicing of group life and health insurance products.

As part of the agreement, Canada Life will purchase Ohio National’s existing group insurance business and make available an expanded line of group insurance products for sale by Ohio National group sales associates.

The deal is expected to close on April 6. Canada Life will pay Ohio National an undisclosed amount of cash. The in-force block of business represents $63 million worth of gross annual premiums ($39 million net of reinsurance) and approximately 2,000 group policies.

The alliance between the two companies covers group life and health insurance products including group term life insurance, group short-term and long-term disability insurance and stop loss plans. Canada Life’s comprehensive portfolio of group products will be made available to Ohio National group producers throughout the United States. Canada Life’s current group products include group term life, medical, dental, short- and long-term disability.

“This transaction reflects our commitment to deliver on the goals set out in our strategic direction,” said Ron Beettam, vice president and director, United States division of Canada Life. “It is another important step toward achieving our primary objective for the U.S. Group Division to move into the top 10 ancillary carriers in the United States group market.”

Both companies are committed to smooth transitions for the Ohio National group policyholders to Canada Life enhanced plans and services plans over the next 15 months as current contracts come up for renewal.