TORONTO, April 1, 2009 – BMO Financial Group today announced that it has completed the acquisition of AIG Life Insurance Company of Canada (AIG Life of Canada). The acquisition, which was announced January 13, 2009, is an all-cash transaction valued at approximately C$329.5 million.
“This acquisition will strengthen BMO Life’s competitive position, giving us immediate scale and capabilities in the life insurance market and will allow us to meet our clients unmet insurance needs,” said Gilles Ouellette, President and Chief Executive Officer of BMO’s Private Client Group. “To secure their lifestyle and retirement needs, our clients are looking for both investment and tax-efficient insurance solutions. To help our clients, BMO Nesbitt Burns Inc. has more than 800 investment advisors who are also life insurance agents, and in Quebec, financial security advisors with BMO Nesbitt Burns Financial Services Inc.”
With the completion of the acquisition, BMO Life is strengthened with 300 new employees, 400,000 customers, Managing General Agents, and a network of more than 5,000 brokers across the country.
BMO Life intends to build on the already strong relationships with the Managing General Agents and is committed to providing outstanding support and service to brokers.
Effective April 1, 2009, AIG Life of Canada becomes BMO Life Assurance Company and will adopt the BMO Insurance brand for all of its marketing, broker and customer communications. It will operate within BMO’s wealth management division, the Private Client Group.
BMO Capital Markets acted as exclusive financial advisor to BMO Financial Group on this transaction.
BMO Financial Group is a highly diversified North American financial services organization that provides a broad range of retail banking, wealth management, and investment banking products and solutions to more than seven million clients and customers across Canada. BMO offers a range of innovative and easy-to-understand insurance solutions that includes: life and disability insurance on mortgages, loans and lines of credit; MasterCard Outstanding Balance insurance; DirectTerm life insurance; Personal Accident Protection, critical illness, and travel insurance. BMO Nesbitt Burns and its predecessor companies have been helping investors meet their financial goals since 1912. Today, BMO Nesbitt Burns has more than 74 branches and 1400 Investment Advisors (as of December 31, 2008). http://www.bmo.com/