The money involved for the acquisition of Legal & General International (Ireland) Limited has not been disclosed.
LGII, based in Dublin, Ireland, after launching in 2007, provides investment and tax planning, primarily focused on the UK high net worth market.
LGII has over 4,000 UK offshore bond policies with assets under administration of £2.5 billion as at 30 October 2014.
Paul Mahon, president and chief executive of Great-West Lifeco, the parent company of Canada Life, said: "The proposed transaction will enhance the position of Canada Life in the UK, and give clients and professional advisers further confidence in our UK offshore business.
"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."

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Mark Gregory, L&G Group chief financial officer, said: "LGII falls outside L&G's focused strategy. This transaction is part of our ongoing disposal programme of our peripheral assets."
The firm said the transaction is expected to close in the second quarter of 2015 and is subject to customary regulatory approvals, including approvals from the European Commission under the EU Merger Regulation.
Canada Life began operations in the United Kingdom in 1903 and looks after the retirement, investment and protection needs of individuals and companies.
It is part of a group of companies owned by Great-West Lifeco, a diversified financial services holding company headquartered in Winnipeg, Canada.