Unity Life of Canada Proposes to Acquire Individual Life & Accidental Death Insurance Policies of the Canadian Professional Sales Association (CPSA)



    Transaction will involve the transfer of assets and the reinsurance, on
    an assumption basis, of all liabilities relating to the individual life
    and accidental death insurance policies currently in-force with CPSA, a
    fraternal benefit society. CPSA will incorporate as a not-for-profit
    corporation under the Canada Corporations Act once the transaction is
    completed.

    TORONTO, Sept. 13 /CNW/ - Unity Life of Canada and the Canadian
Professional Sales Association (CPSA) today announced that they have entered
into an agreement under which Unity Life will acquire the individual life and
accidental death policies of CPSA. Following this transaction CPSA will cease
to operate as a fraternal benefit society governed by the Insurance Companies
Act (Canada) and will continue as a not-for-profit corporation governed by the
Canada Corporations Act.
    Under the agreement, which is subject to approval by regulatory
authorities and members of CPSA, Unity Life will assume all insurance
liabilities and related assets of CPSA.
    If the transaction is approved, CPSA will cease providing direct
insurance benefits to its members. Certain insurance benefits will continue to
be provided to CPSA members by Unity Life, with no requirement for future
premium payments.
    In announcing the agreement, Unity Life President and CEO Anthony Poole
said: "This transaction continues our strategy to grow Unity Life in to one of
Canada's leading niche insurers. The transaction will strengthen Unity Life's
size and fits well with our portfolio of specialty products. It continues our
strategy of targeting blocks of business that complement our market and
expertise. This acquisition comes on the heels of our recently announced plans
to undergo a sponsored demutualization in partnership with Foresters. Both
transactions underscore our commitment of growing our Canadian organization,
improving our financial results and maintaining a leadership position in our
core markets."
    "CPSA's Board of Directors is excited about the proposed transaction and
believes that it offers CPSA the opportunity to continue to offer its members
the benefits they value most. It will also provide CPSA with future growth
opportunities as it will allow CPSA to further develop its corporate
membership program," said Harvey Copeman, President & CEO of CPSA. "Unity
Life's size, exceptional service infrastructure and complementary culture will
provide our members with a secure home for their insurance protection."
    The value of the transaction was not disclosed. It is expected the
transaction will close by the end of the year. Upon completion, CPSA will
continue to provide its members with a range of benefits and services in
keeping with its mandate as a professional training and development
organization. The insurance policies assumed by Unity Life will form part of a
growing insurance operation that is committed to providing leading service and
insurance products for Canadians.

    CPSA to Call Special General Meeting of Members

    CPSA will be holding a special general meeting of its members so they may
consider and vote on the proposed transaction. CPSA will send members a notice
of the meeting shortly, advising further details concerning the transaction
and its affect on members.

    About Unity Life

    Unity Life of Canada is a Canadian incorporated mutual life insurance
company owned by its participating policyholders. The company provides
financial security to Canadians through innovative life insurance products and
services. The company originated in 1898 as the Insurance Department of the
Subsidiary High Court of the Ancient Order of Foresters. It was incorporated
as a mutual company in 1934, subsequently changing its name to Toronto Mutual
Life Insurance Company. In 2002, Toronto Mutual Life amalgamated with its
subsidiary, The Western Life Assurance Company, as Unity Life of Canada. Based
in Mississauga Ontario, Unity Life currently has more than
175,000 policyholders, $13 billion of insurance in force, and over $500
million in assets. Unity Life's Web address is www.unitylife.ca.

    About Canadian Professional Sales Association

    CPSA is a fraternal benefit society, which is a national organization
with approximately 27,000 sales and marketing professionals as members.
Founded in 1874 it was previously known as the Commercial Travelers
Association. CPSA provides its members with a range of professional
development programs and benefits, which allow members to receive significant
savings on travel, business costs and more.





For further information:

For further information: Media Contacts: CPSA, Anna Maria Calaminici,
(416) 408-2685 ext.279, acalaminici@cpsa.com; Unity Life, Alison Stemp, (905)
219-8008, astemp@unitylife.ca

Organization Profile

UNITY LIFE OF CANADA

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