LGII provides investment and tax planning solutions, primarily focused on the UK high net worth market. Assets under administration totalled £2.5bn ($3.8bn), as of the end of October 2014.
"Canada Life is a highly regarded offshore bond provider and has been selling into the UK for over 27 years through its offshore companies, based in the Isle of Man and, more recently, also based in Dublin," said Paul Mahon, president and CEO of Great-West Lifeco.
Legal & General's chief financial officer Mark Gregory commented that the LGII sale "is part of our ongoing disposal programme of our peripheral assets." The transaction is expected to close in the second quarter of 2015.