Announced on Sept. 17, 2009, the transaction will provide insurance products and services to Canadian credit unions and their members. The predividend distribution purchase price was $245.4 million, subject to post-closing adjustments, according to the acquiring companies.
Prior to the acquisition, the majority shareholder of CUMIS was CUNA Mutual. CUMIS became an affiliate of CUNA Mutual in 1977. Its principal companies are CUMIS Life Insurance Co. and CUMIS General Insurance Co. At the time of the acquisition announcement, CUNA Mutual President/CEO Jeff Post said the sale would help improve the company's financial strength and simplify its business while allowing it to pursue new avenues of growth.
Upon execution of agreements between Co-operators Life and Central 1, expected to be completed by March 31, the Co-Operators group of companies will own approximately 73% and Central 1 will own approximately 27% of CUMIS, according to both companies. All existing CUMIS insurance policies remain in effect with no changes.
With more than $10 billion in assets, Central 1 is the central liquidity facility and trade association for nearly 200 member CUs in British Columbia and Ontario, Canada. The Co-operators is a cooperative focused on insurance and investment products for consumers. It is owned by a group of Canadian cooperatives and CU centrals.
"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/CEO of Co-Operators Group Ltd. 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 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 CUs as well as wealth management services and products, including CU group retirement plans.
"This acquisition will provide growth opportunities by building on our relationships with credit unions," said Don Rolfe, president/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."