BURLINGTON, ON, Jan. 4 2010 – Co-operators Life Insurance Company and Central 1 Credit Union announced today the completion of their acquisition of The CUMIS Group Limited of Burlington, Ontario.
The transaction was completed on December 31, 2009. Upon execution of agreements between Co-operators Life and Central 1, expected to be completed by March 31, 2010, The Co-operators group of companies will own approximately 73 per cent and Central 1 will own approximately 27 per cent of CUMIS.
All required approvals have been granted, and the transaction was unanimously approved by CUMIS’ shareholders in November.
Announced on September 17, 2009, the transaction will result in a strong, Canadian-owned insurance company that provides products and services to Canadian credit unions and their members. Prior to this transaction, the majority shareholder of CUMIS was CUNA Mutual Group of Madison, Wisconsin. The pre-dividend distribution purchase price was C$245.4 million, subject to post-closing adjustments.
“This is an exciting growth opportunity for Co-operators Life, which also strengthens our bonds with the Canadian credit union system,” said Kathy Bardswick, President and CEO of The Co-operators Group Limited and the new CEO of CUMIS. “We look forward to meeting and exceeding the insurance needs of credit unions, caisses populaires and their members throughout the country in the years ahead.”
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.
“This acquisition will provide growth opportunities by building on our relationships with credit unions,” said Don Rolfe, President and CEO of Central 1. “We believe this is a strategic investment that offers the potential to improve our members’ experience and create value for them.”
All existing CUMIS insurance policies remain in effect with no changes.
About Co-operators Life:
Co-operators Life Insurance Company, with its head office in Regina, is a wholly-owned subsidiary of The Co-operators Group Limited. Through its operating subsidiaries, The Co-operators offers home, auto, life, group, travel, commercial and farm insurance, as well as investment products. The Co-operators Group Limited is a 100 per cent Canadian-owned co-operative with assets of more than $7 billion. It is owned by a group of Canadian co-operatives, credit union centrals and like-minded organizations. The Co-operators is well known for its community involvement, and is listed among the 50 Best Employers in Canada. www.cooperators.ca.
About Central 1:
With more than $10 billion in assets, Central 1 Credit Union is the central liquidity facility and trade association for its nearly 200 member credit unions in B.C. and Ontario. From offices in Vancouver, B.C., and Mississauga, Ont., more than 500 employees provide a wide range of services, including liquidity management, payments settlement, Internet financial services and trade associational services. More information about Central 1 is available at www.sedar.com.
CUMIS partners with credit unions to deliver competitive insurance and financial solutions. In doing so, it creates financial security and promotes the growth and success of the credit union system in Canada. Its principal companies are CUMIS Life Insurance Company and CUMIS General Insurance Company.