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Ascensus and Newport Group to Merge

Share this…FacebookPinterestTwitterLinkedin Ascensus has entered right into a definitive settlement for Newport Group, a Walnut Creek, California-based retirement companies supplier,…

By Staff , in Retirement Accounts , at November 3, 2021

Ascensus has entered right into a definitive settlement for Newport Group, a Walnut Creek, California-based retirement companies supplier, to merge with Ascensus.

The newly mixed group will supply a broader set of capabilities and merchandise to learn institutional companions, purchasers, advisers and retirement savers, the agency says.

With certified and nonqualified retirement plan companies, fiduciary consulting companies and corporate- and bank-owned life insurance coverage (COLI and BOLI) practices, Newport will broaden the options and experience Ascensus supplies to its purchasers and adviser companions. Equally, the companies say Newport’s purchasers will profit from better entry to tax-advantaged financial savings options throughout retirement, training and well being supplied by Ascensus. As well as, the businesses each put money into know-how and supply digital capabilities and analytics.

David Musto, president and CEO of Ascensus, will function CEO of the mixed firm. Greg Tschider has stepped down as CEO of Newport. To make sure continuity of management, operations and consumer service by closing, Laura Ramanis—who has served as Newport’s chief working officer (COO) since 2014—has been named interim CEO. She will probably be supported by Kurt Laning, govt vice chairman, nonqualified and insurance coverage options, together with Newport’s senior administration group. Ramanis and Laning will be part of the Ascensus govt management group and stay with the unified firm post-closing.

With the merger, Ascensus-administered belongings beneath administration (AUA) will enhance to greater than $700 billion, together with $184 billion in authorities financial savings accounts. This consists of 529 plans, ABLE [Achieving a Better Life Experience] financial savings accounts and state-facilitated retirement applications. Ascensus will even have greater than 700,000 well being and versatile financial savings and COBRA [Consolidated Omnibus Budget Reconciliation Act] accounts, practically 300,000 COLI/BOLI insurance policies, and greater than 140,000 nonqualified retirement plan participant accounts. With Newport’s enterprise, Ascensus will even see an expanded tax-advantaged financial savings participant base, which is able to now attain greater than 15 million individuals throughout america.

The transaction is predicted to shut within the first quarter of 2022, topic to the receipt of regulatory approvals, together with assessment and non-objection by the South Dakota Division of Banking; assessment and approval by the New Hampshire Banking Division; and satisfaction of different customary closing circumstances.

“Ascensus and Newport are each revered leaders within the market—and well-known for service excellence, deep experience, funding independence and purpose-built know-how,” Musto says. “We count on the service platform funding, product enlargement and enhanced capabilities our union will ship to be well-received by our collective purchasers. As a mixed firm, we’ll be capable to even additional advance our mission of serving to people save for what issues.”

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