WATERLOO, Ontario — Clarica Life Insurance Co. said that it will buy Royal Bank of Canada’s retirement services business for $29.5 million.

The purchase would give Clarica a 16% market share in defined contribution plans. The deal involves pension plans sold on a group basis, group retirement savings and profit-sharing plans, stock purchase plans, and option plans.

Clarica’s assets under administration for group retirement services would rise to $5.7 billion with the addition of Royal’s $2 billion.

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