Two of Canada’s leading life and health insurers have today announced what can only be described as a mega-merger. Moving forward, Foresters Financial and Canada Protection Plan will act as one in the Canadian market, under the brand: Canada Protection Plan, A Foresters Financial Company.
The amalgamation will bring together the leading technology and best practices of both companies in order to create what they hope will be “the most innovative customer-, member- and advisor-centric life insurer in Canada”.
For Foresters, the merger will accelerate the growth of its life insurance business in North America, with an emphasis on innovation, new product development and independent distribution, as well as a commitment to expanding its position in Canada. For Canada Protection Plan, the agreement signals a significant investment in its future and growth.
“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.”
Jim Boyle, president and chief executive officer of Foresters Financial, added: “We’re thrilled to make our longstanding partnership with Canada Protection Plan official. 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.”
The joint entity will be headquartered in Toronto, and the status of employees, as well as existing certificate and policyholders at both firms will remain unchanged. The new brand - Canada Protection Plan, A Foresters Financial Company - will only be used in the Canadian market. The Foresters Financial brand will remain the same in all other markets.
Foresters was advised on this transaction by Deloitte LLP and Fasken Martineau DuMoulin LLP. The transaction is subject to customary regulatory approval.
