Foresters Financial, a fraternal life insurer, is acquiring Canada Protection Plan, a distributor of No Medical and Simplified Issue life insurance.
Foresters was advised in this transaction by Deloitte LLP and Fasken Martineau DuMoulin LLP. The transaction, announced Oct. 2, is subject to customary regulatory approval.
In a statement, the Toronto-based companies called the transaction an amalgamation that will bring together “the industry-leading sales and marketing power of Canada Protection Plan with the well-capitalized, purpose-driven Foresters Financial” and “amplify the strengths of each organization and create the most innovative customer-, member- and advisor-centric life insurer in Canada.”
A spokesperson for Foresters, told Insurance Portal that “the amalgamation includes Foresters Financial taking full ownership of Canada Protection Plan. Both companies will operate independently, and Canada Protection Plan will continue to deliver the same strong sales support and service to advisors to which they have become accustomed. Clients and members of both organizations will benefit from the combined product, process and service opportunities of this union.”
The status of employees at Foresters and Canada Protection Plan will remain unchanged. The status of existing certificate and policy holders will also remain the same. In the Canadian market, the new entity will be branded as Canada Protection Plan, A Foresters Financial Company. The Foresters Financial brand will remain the same in all other markets, say the companies.
Well positioned to grow
"We're thrilled to make our longstanding partnership with Canada Protection Plan official," stated Jim Boyle, President and Chief Executive Officer, Foresters Financial. "Foresters is strongly committed to its life insurance business in North America and this agreement fits perfectly with our long-term goals. It will accelerate the expansion of our business in Canada and we will be well positioned to grow – through innovation, new product development and independent distribution."
"This is an exciting day for both organizations," said Michael Aziz, Canada Protection Plan Chief Distribution Officer and Co-President. "It's a significant investment in the future of Canada Protection Plan and is the next step on our shared goals of driving growth in the Canadian market. Joining with Foresters is a logical evolution for our company. It will open doors to new opportunities for our customers, employees and advisors."
"This next step of our longstanding partnership with Foresters holds significant potential product and service synergies to meet the ever-changing needs of our customers," added Canada Protection Plan Co-President Henry Auyeung. "Our respective teams are eager to begin the work of determining which areas offer the best opportunities for growth and innovation."