OneAmerica Financial Partners Inc. has inked a deal to acquire
the San Diego-based retirement services recordkeeping business of
City National Bank, the primary subsidiary of
City National Corporation
). Though the terms of the deal have not been finalized yet, it is
likely to close by fourth-quarter 2014. The merged entity is
expected to offer a broader range of products and services.
Upon completion of the deal, the Los Angeles, CA-based City
National Bank's retirement services unit will be renamed OneAmerica
Retirement Services LLC and it will continue to operate from San
Diego. Additionally, the two entities are expected to sign a
strategic agreement under which City National Bank will not only
distribute OneAmerica retirement products, but also provide
directed trustee services to select OneAmerica retirement
City National Bank's retirement services division involves
management of over 240 plans, covering around 40,000 participants.
Moreover, its competence in offering individually directed accounts
(IDAs) as well as experience in serving the country's largest and
most admired professional firms has provided it with an advantage
over its peers. On the other hand, OneAmerica, the Indianapolis,
IN-based insurance firm's retirement services businesses manage
over 10,000 plans with around 680,000 participants.
The acquisition boosts OneAmerica's growth momentum by adding new
participants and plans to its retirement services portfolio. With
continuous evolution of the industry and the client needs, the deal
is expected to be accretive to OneAmerica.
Currently, City National Corporation carries a Zacks Rank #3
(Hold). Some better-ranked western banks include
Central Pacific Financial Corp.
CVB Financial Corp.
Bridge Capital Holdings
). While Central Pacific Financial and CVB Financial sport a Zacks
Rank #1 (Strong Buy), Bridge Capital Holdings has a Zacks Rank #2
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CITY NATIONAL (CYN): Free Stock Analysis Report
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