Royal Bank of Canada has acquired American Guaranty & Trust, part of the National Life Group, for an undisclosed price. The deal will en...

Royal Bank of Canada has acquired American Guaranty & Trust, part of the National Life Group, for an undisclosed price. The deal will enable RBC to service a larger part of the US trust market, which is worth an estimated $1 trillion, by providing a wider selection of products and services to wealthy American clients. The deal completes the bank’s wealth management offering by allowing clients to establish trusts for estate planning. "This acquisition allows us to fill a hole that we had in the offering and so we now are in a better position to meet our clients' needs," said Michael Moodie, head of RBC global private banking in the US and Caribbean. Lee Cheney, currently AG&T president and chief executive officer, will become the head of RBC's US trust business, reporting to Mr Moodie. Analysts believe that the acquisition, which is due to complete later this month subject to regulatory approvals, is consistent with RBC’s aim of growing global private banking businesses.