OneAmerica Financial Partners Inc. announced Wednesday that it will acquire a San Diego-based retirement business, gaining access to another large market.
The Indianapolis-based insurance firm said it expects to close on the purchase of City National Bank's retirement services record-keeping business later this year. Terms of the agreement were not disclosed.
The City National division will take the name OneAmerica Retirement Services LLC after the deal closes. Operations will continue from the San Diego location.
City National’s retirement business manages more than 240 plans with 40,000 participants and has $6.5 billion in assets under administration. OneAmerica’s retirement services businesses serve more than 10,000 plans with 680,000 participants and have more than $24 billion in retirement assets.
In addition, OneAmerica and City National Bank will enter into a strategic alliance in which the bank will distribute OneAmerica retirement products and provide directed trustee services to select OneAmerica retirement customers.
City National's expertise in "individually directed accounts," or IDAs, plus a focus on servicing some of the country's largest and most prestigious professional-service firms will allow OneAmerica to offer more comprehensive programs and stand out in the marketplace, said Bill Yoerger, president of the retirement services division of OneAmerica.
The transaction is not expected to have a material impact on City National’s financial results, the company said.