Forethought’s Canadian block of individual and group insurance policies aligned with Unity Life’s existing insurance portfolio
MISSISSAUGA, ON, Oct. 31, 2008 – Unity Life of Canada, a Foresters company, and Forethought Financial Group, Inc. today announced that they have entered into an agreement under which Unity Life will acquire the insurance business of Forethought’s Canadian branch, Forethought Life Insurance Company. Forethought is a leading U.S. based provider of insurance and financial solutions related to retirement and end of life expenses.
Under the agreement, which is subject to Canadian and U.S. regulatory approval, Unity Life will acquire Forethought’s Canadian block of approximately 20,000 funeral funding insurance policies, including policy liabilities of approximately $90.6 million and related assets, pursuant to an assumption reinsurance transaction.
It is anticipated that the transaction will be completed on or about December 31, 2008. Following its completion, Forethought will close its Canadian branch.
In announcing the agreement, Unity Life President and CEO, Tony Poole said, “This transaction reaffirms our growth strategy of targeting blocks of business that complement Unity Life’s market and area of expertise, and reinforces our commitment to becoming Canada’s leading niche insurer. This addition will further strengthen Unity Life’s asset base and aligns well with our existing insurance portfolio of specialty products.”
John Graf, President, Chairman and CEO of Forethought commented, “Unity Life’s complementary culture, exceptional service infrastructure, and vision will ensure that our Canadian policyholders have a secure home for their pre-need insurance protection.”
Adds Tony Poole, “Today’s news follows our September 25th announcement of the purchase of the business segment of GeniSys Management Solutions that performs business process outsourcing, as part of Unity Life’s strategy to generate ongoing enhancements in service quality and cost efficiencies. Both transactions demonstrate our commitment to continue to expand our Canadian organization, improve our financial results and maintain a leadership position in our core markets.”
The value of the transaction was not disclosed. Upon its completion, Unity Life will continue to serve Forethought’s Canadian policyholders and provide them with their contracted benefits and services as a leading provider of niche insurance products and services.
Forethought Financial Group, Inc., through its subsidiaries, provides innovative insurance and financial solutions for families managing retirement and end-of-life needs. Headquartered in Indianapolis, Indiana, our companies provide life insurance, trust services, and annuities. Forethought’s insurance affiliates include Forethought Life Insurance Company and Forethought National Life Insurance Company. Collectively, the insurance companies are licensed to sell in 49 states, the District of Columbia and Puerto Rico. Forethought also provides trust services in 28 states and the District of Columbia. Forethought, through its life insurance subsidiaries, has assets owned and under management in excess of $3.7 billion, approximately $720 million in annual revenue, more than $5.0 billion of life insurance and annuity business in force, and has served more than 2 million policyholders since 1985. Forethought’s Web address is www.forethought.com.
About Unity Life
Unity Life of Canada is a Canadian incorporated life insurance company, which provides financial security to Canadians through innovative life insurance products and services. The company originated in 1898 as the Insurance Department of the Subsidiary High Court of the Ancient Order of Foresters. It was incorporated as a mutual company in 1934, subsequently changing its name to Toronto Mutual Life Insurance Company. In 2002, Toronto Mutual Life amalgamated with its subsidiary, The Western Life Assurance Company, as Unity Life of Canada. On April 2, 2008, Unity Life was converted from a mutual life insurance company to a stock life insurance company owned by Foresters. Based in Mississauga Ontario, Unity Life currently has more than 192,000 active policies and certificates, $13.8 billion of insurance in force, and $562 million in assets (all figures in Canadian dollars as at December 31, 2007). Unity Life has been assigned an “A-” (Excellent) rating by A.M. Best(*). Unity Life’s Web address is www.unitylife.ca.Tags: outlook, report, Valen Analytics