September 18, 2009 by Canadian Underwriter
Co-operators Life Insurance Company and Central 1 Credit Union (Central 1) have announced an agreement to acquire The CUMIS Group Limited (CUMIS) for approximately Cdn$232 million.
The deal is subject to regulatory, shareholder and court approvals and other standard closing conditions.
CUMIS provides a range of personal insurance, including credit and mortgage protection; life; disability and critical illness; home; auto; travel and employee benefits.
CUMIS 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.
All existing CUMIS insurance policies remain in effect with no changes.
Co-operators Life is a wholly-owned subsidiary of The Co-operators Group Limited.
The Co-operators and CUMIS for 23 years have had a joint insurance business venture, through which CUMIS provides insurance products and services to approximately 450 Canadian credit unions and caisses populaires (and their more than 5 million members).
Co-operators Life, based in Regina, Sask., and Central 1, headquartered in Vancouver, B.C., intend to acquire 100% of the issued and outstanding shares of CUMIS pending required approvals.
Currently, CUNA Mutual Group, based in Madison, Wisconsin, holds 87.4% of the shares of CUMIS. CUNA fully supports the transaction.
The transaction is expected to close on or about Dec. 31, 2009. Upon completion of the transaction, The Co-operators will own between 63.8% and 73% of CUMIS.
Central 1 would own between 23.6% and 27% of CUMIS.
In addition to her role as president and CEO of The Co-operators Group, Kathy Bardswick would become CEO of CUMIS upon the closing of the deal.