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| September 17, 2009: M&A activity in the insurance sector back in play as Co-operators Life Insurance Company and Central 1 Credit Union to acquire The CUMIS Group Limited... |
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Co-operators Life Insurance Company (Co-operators Life) and Central 1 Credit Union (Central 1) today announced an agreement to acquire The CUMIS Group Limited (CUMIS), subject to regulatory, shareholder and court approvals and other standard closing conditions. This transaction would result in a strong, Canadian-owned supplier of insurance products and services to Canadian credit unions and their members. Based on December 31, 2008 consolidated financial statements, the purchase price will be approximately C$232 million. The final purchase price will be determined based on closing audited financial statements for 2009 subject to final closing adjustments. CUMIS provides a full range of personal insurance, including credit and mortgage protection; life; disability and critical illness; home; auto; travel and employee benefits. It also provides business, liability and property insurance to credit unions themselves, as well as wealth management services and products, including credit union group retirement plans. All existing CUMIS insurance policies remain in effect with no changes. Co-operators Life is a wholly-owned subsidiary of The Co-operators Group Limited (The Co-operators). For 23 years, The Co-operators and CUMIS have had a joint insurance business venture, through which CUMIS provides insurance products and services to approximately 450 Canadian credit unions and caisses populaires, and their more than five million members. Co-operators Life, based in Regina, Saskatchewan, and Central 1, headquartered in Vancouver, B.C., intend to acquire 100 per cent of the issued and outstanding shares of CUMIS, pending required approvals. CUNA Mutual Group, based in Madison, Wisconsin, currently holds 87.4 per cent of the shares of CUMIS, and fully supports this transaction. The transaction is expected to close on or about December 31, 2009. Upon completion of the transaction and execution of agreements between The Co-operators and Central 1, The Co-operators will own approximately 63.8 per cent to 73 per cent of CUMIS and Central 1 will own approximately 23.6 per cent to 27 per cent of CUMIS. E.&O.E. |
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