February 28, 2005 by Canadian Underwriter
The sale of Fairfax’s Federated Life to Western Financial Group is now complete, with the company’s name to be changed to Western Life Assurance Co.
Western Financial purchased the life insurer from Fairfax’s Northbridge Financial Corp. for $20 million, with the sale first announced last May.
Concurrent with the sale, Western Financial issued 10.35 million common shares as part of an earlier public offering of subscription receipts used to fund the acquisition.
The acquisition of Federated Life substantially completes the integrated financial services product line that Western Financial Group has been building since 1996,” says Western Financial CEO Scott Tannas. “We are excited to begin working with the management and staff of Federated Life to bring group life and health insurance to our mix of products.”
In 2004, the former Federated Life wrote gross premiums of $23.6 million, and at the end of 2003 it had total assets of $54.9 million.
“Western has acquired a well managed business with an established customer base and a long record of profitability, and we wish Western Life Assurance Company success, says Northbridge CEO Byron Messier.