Great West Life & Annuity Insurance Co · 8-K · For 4/29/98 · EX-99.1

Filed On 5/15/98   ·   SEC File 333-01173   ·   Accession Number 744455-98-12

Current Report   ·   Form 8-K
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 8-K         Stock Purchase                                         2±    10K 
 2: EX-99.1     Press Release                                          2     10K 

EX-99.1   ·   Press Release

EX-99.1
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EXHIBIT INDEX                                                                   

Exhibit No.           Description                                               

99.1               Press release:  Great-West Life & Annuity Insurance Company  
                   announces agreement to acquire Anthem Health & Life Insurance
Co.                                       

EX-99.1
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EXHIBIT NO. 99.1

FOR IMMEDIATE RELEASE               For more information, contact:              
                                   Kathy Jacoby,
                                      Public Relations
                                    (303) 689-3155

               GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY ANNOUNCES

             AGREEMENT TO ACQUIRE ANTHEM HEALTH & LIFE INSURANCE CO.

        DENVER,  April 29,  1998--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-size 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 eight 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.                                      

                     # # #

Dates Referenced Herein   and   Documents Incorporated By Reference

				Referenced-On Page
This 8-K Filing		Date		First		Last			Other Filings
For The Period Ended		4/29/98		2
Filed On / Filed As Of		5/15/98
		6/30/98		2					10-Q
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