London & Midland sells affinity business

Citigroup Inc. Canadian subsidiary, London & Midland General, is selling part of its affinity business to Canada Life Assurance Company. Canada Life annouces it will take over London & Midland’s “non-affiliate” affinity business, which is expected to bring in over $15 million in premiums this year.
The sale includes London & Midland’s accidental death and dismemberment insurance, which is marketed on an affinity basis to the clients of businesses, with those businesses receiving a sponsorship fee in return. Canada Life says customers will be informed of any changes resulting from the sale, but notes that it should be “business as usual”, and that the business office will be retained in London, Ontario.
The purchase is in keeping with Canada Life’s “principal business strategy”, says Bill Acton, executive vice president and director, Canadian division, for Canada Life. “It [the affinity business] contributes to company growth, strengthens our position in protection markets and expands our distribution capabilities.”
The sale is expected to be completed in October of this year.