HALIFAX, March 13, 2003 – Maritime Life announced today it has signed an agreement to assume the insurance business of Liberty Health, a Canadian division of Liberty International, a subsidiary of US-based Liberty Mutual Group. Based upon Liberty Health’s most recent results, the deal will add approximately $700-million in premium and premium equivalents, primarily to Maritime Life’s group insurance operations – solidifying the company’s position as one of the top group insurers in Canada.
“Liberty Health is our fourth acquisition in the past eight years and a good complement to our expanding business,” said Bob Nicholas, senior vice president, Maritime Life Group Operations. “This significantly increases our presence in the group insurance arena, especially in Ontario – our largest market. We look forward to working cooperatively with Liberty Health employees, business partners and customers in the months to come,” Mr. Nicholas added.
“While Liberty Health has been an outstanding niche company for us, Liberty International’s strategic focus is on personal, small commercial and global specialty lines of property and casualty insurance,” said Thomas C. Ramey, Liberty Mutual Group executive vice president and president of Liberty International. “With consolidation taking place in the Canadian life and health insurance industry, at some future point we would have faced the choice to acquire a group life and health company to remain competitive, or sell Liberty Health. We decided to sell Liberty Health to Maritime Life, an excellent company, after giving much consideration to what is in the best interest of Liberty International, Liberty Health, its customers and employees.”
The deal is expected to close in early July 2003, subject to regulatory approval. Through this agreement, Maritime Life will assume the entire business of Liberty Health, which includes group life, disability, and health, and the individual health insurance business. Liberty Health employs more than 500 people, located mostly in the Markham, Ontario head office location, with a small number of employees in regional offices across Canada. At closing, Maritime Life expects to pay approximately $140-million Cdn.
About Maritime Life
Founded in 1922, Maritime Life is one of Canada’s fastest growing financial services companies, offering financial security through a selection of personal insurance, disability and critical illness insurance, investment products, pensions, and group life and health products and services. Based in Halifax, Nova Scotia, Maritime Life provides benefits to over two million Canadian families through offices in Halifax, Montreal, Toronto, Kitchener, Oakville, Calgary and Vancouver.
Maritime Life is one of only three companies to be included four consecutive years in the Globe and Mail’s Report on Business magazine ranking of “The 50 Best Companies to Work for in Canada.”
As a subsidiary of Boston-based John Hancock Financial Services, Inc. (NYSE:JHF), Maritime Life comes from a tradition of strength and stability. John Hancock Financial Services, Inc. is a leading financial services company, providing a broad array of insurance and investment products and services to retail and institutional customers. As of December 31, 2002, Hancock and its subsidiaries had total assets under management of $127.6 billion U.S.
Visit our Web site at www.maritimelife.ca.
Maritime Life’s Assumption of Liberty Health Fact Sheet
- With Liberty Health, Maritime Life’s 2002 revenue premium would have been $2,247 million, compared to $1,887 million as reported.
- The deal will add approximately $700-million in premium and premium equivalents, primarily to Maritime Life’s group insurance operations – solidifying the company’s position as one of the top group insurers in Canada.
- Maritime Life will assume the entire business of Liberty Health, which includes group life, disability and health, and the individual health insurance business.
- At closing, Maritime Life expects to pay approximately $140-million Cdn.
- John Hancock is providing some of the capital necessary for the purchase.
- The deal is expected to close in early July 2003, subject to regulatory approval.
Facts about Maritime Life
Maritime Life . . .
- was incorporated in 1923, and has been providing products and services to help Canadians achieve financial security ever since.
- is a leading provider of individual life insurance and living benefits, investment products, pensions, and group life and health products and services.
- provides benefits to over two million Canadians served from offices in Halifax, Montreal, Toronto, Kitchener, Oakville, Calgary and Vancouver with over 2,200 employees.
- believes independent financial advisors are in the best position to help individual Canadians make informed decisions.
- works primarily with plan sponsors and their benefit consultants, brokers or advisors in structuring and administering benefit plans. Group benefit plans are designed to foster the health, well-being and peace of mind of plan members.
- has been named one of the Best Companies to Work for in Canada through a survey sponsored by the Globe and Mail’s Report on Business (ROB) magazine for the fourth year in a row. The December 2002 edition ranked Maritime Life 19th overall as one of the “50 Best Companies to Work For in Canada.”
- is a subsidiary of John Hancock Financial Services, Inc., a leading U.S. financial services company.
| A.M. Best | A+ | (Superior) |
| Moody’s | A1 | (Good financial security) |
| S&P | AA- | (Very strong) |
| April 2002 | Launched our new experience brand and Web site to the public. |
| January 2002 | Launched new institutional annuities program with the issuance of a two-year floating rate annuity for $150 million of premium. |
| January 2002 | Completed amalgamation of Maritime Life and Royal & Sun Alliance Life Insurance Company of Canada (Royal & SunAlliance Financial). |
| October 2001 | Completed acquisition of Royal & SunAlliance Financial. |
| April 2001 | Signed strategic joint venture with TAL Institutional Management to develop and market a defined contribution product for the group pension business. |
| September 2000 | Announced that Maritime Life would be the primary tenant in O&Y Properties Corporation’s new downtown Toronto office building at 2 Queen Street East. The office building is named Maritime Life Tower. |
| January 2000 | Amalgamated with Aetna Life Insurance Company of Canada (Aetna Canada). |
| November 1999 | Purchased Aetna Canada. |
| November 1999 | Introduced the newly named Maritime Life Tower at 79 Wellington Street in Toronto, part of the TD Centre complex. |
| July 1999 | Formed strategic alliances with AGF Management Limited, Fidelity Investments, Global Strategy Financial Inc. and Talvest Fund Management Inc. to introduce 16 new fund options. |
| September 1998 | Launched new category of segregated fund family in partnership with Talvest. |
| May 1995 | Completed acquisition of Confederation Life. |
| February 1995 | Signed agreement to acquire the Canadian individual life and health insurance and segregated fund business of Confederation Life. |
Facts about Liberty Health
Liberty Health …
- is one of Canada’s premier integrated health benefits management companies, providing individual health and group life and health benefits to over three quarters of a million Canadians.
- has a range of products that includes dental, drug, emergency travel, extended health care, life insurance, AD&D, short and long term disability, wellness and prevention, critical illness, home care and long-term care coverage.
- offers its services using an integrated delivery platform using multiple channels.
- is backed by one of the strongest global insurance organizations in the world, Liberty Mutual, which has been operating in Canada for more than 60 years, offering a wide range of products and services, including personal, small commercial and global specialty lines of property and casualty insurance.
- employs over 500 permanent employees, mostly based out of their head office in Markham, Ontario, with a small number of staff employed in seven regional offices across Canada.
- had the fifth highest group sales in Canada in 2001, focusing on all market segments. (Source: LIMRA)
Financial Highlights for 2002
- Net operating income before taxes amounted to $29.6 million.
- Total assets under administration were $384 million.
- Inforce premiums and premium equivalents were approximately $700 million.
