Special Meeting of Policyholders Scheduled for February 28, 2008
TORONTO, Dec. 21 /CNW/ - Unity Life of Canada today took an important
step toward its proposed sponsored demutualization as it commenced the mailing
of information packages to approximately 15,000 eligible policyholders. If the
sponsored demutualization is approved, eligible Unity Life policyholders will
receive cash payments in exchange for their voting control and their share of
the value of Unity Life. Their insurance coverage, policy values, premiums and
rights to receive experience dividends will be unaffected by the sponsored
The information package follows up on the announcement of August 9, 2007,
that Unity Life and Foresters(TM) have entered into an agreement under which
Foresters will acquire Unity Life and Unity Life will represent Foresters in
the Canadian market as a member of the Foresters group of companies.
Under the agreement, Foresters will sponsor the demutualization of Unity
Life and subsequently subscribe to Unity Life for common shares, payable in
cash. Following the sponsored demutualization, which is subject to approval by
regulatory authorities and eligible voting policyholders of Unity Life, and
the share subscription by Foresters, Unity Life will become a wholly owned
subsidiary of Foresters.
The information package includes the particulars on the amount of the
cash payment that each eligible policyholder will be entitled to receive if
the sponsored demutualization is approved. Also included in the package is a
two-part Policyholder Guide to Sponsored Demutualization containing detailed
information on the sponsored demutualization and a voting form.
"We urge all of our eligible policyholders to vote on this important
proposal," said Anthony Poole, President and Chief Executive Officer of Unity
Life. "The information package is designed to ensure that policyholders have
all the information they require in order to make an informed decision about
sponsored demutualization. At least two-thirds of those who vote must be in
favour of the proposal for it to proceed. The Board of Directors of Unity Life
has recommended this proposal, but ultimately, the policyholders must decide."
Eligible policyholders can vote either by proxy or in person at a special
meeting to be held at the Mississauga Convention Centre at 10:00 a.m. (Eastern
Standard Time) on February 28, 2008.
If the sponsored demutualization goes forward, payments to eligible Unity
Life policyholders will consist of two parts - a fixed portion representing
about 25% of the total payout to eligible policyholders, and a variable
portion dependent on the size and duration of the eligible policy or policies.
The average payout will be approximately $3,300 per eligible policyholder.
To be eligible for cash payments under the demutualization, policyholders
must have had one or more eligible policies in force on the August 9
Eligible policyholders who are unable to attend the special meeting may
cast their vote by completing and returning the voting form that has been
included with the information package. The voting form must be received no
later than 5 p.m. (Eastern Standard Time), on February 25, 2008. The forms
will be independently processed by Equity Transfer & Trust Company.
Parts I and II of the Policyholder Guide to Sponsored Demutualization are
posted on the Unity Life web site at www.unitylife.ca. Policyholders may also
call Unity Life Client Services at 1-866-582-2533 for more information.
About Unity Life
Unity Life of Canada is a Canadian incorporated mutual life insurance
company, which 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 (all figures in Canadian dollars as at
December 31, 2006). Unity Life's Web address is www.unitylife.ca.
Founded in 1874, Foresters(TM) helps individuals and families achieve
financial security with its innovative portfolio of life insurance products
and annuities. Foresters has assets of more than $5.7 billion with liabilities
of $4.5 billion resulting in a surplus of $1.2 billion (all figures in
Canadian dollars as of December 31, 2006) and an "A" (Excellent) rating by
A.M. Best(*). Foresters shares its financial strength with its members, who are
customers, through complimentary life, health and education benefits that help
its more than 750,000 eligible members and their families in the United
States, Canada and the United Kingdom. Foresters provides opportunities that
inspire its members to make a difference in their communities. Foresters
Equity Services, Inc.(xx) and Foresters Securities (Canada) Inc. are wholly
owned subsidiaries of Foresters that offer investment products in the United
States and Canada respectively. For more information, please visit
Foresters(TM) is a trademark of The Independent Order of Foresters, a
fraternal benefit society, 789 Don Mills Road, Toronto, Canada M3C 1T9.
(*) An "A" (Excellent) rating is assigned to companies that have a
strong ability to meet their ongoing obligations to policyholders
and have, on balance, excellent balance sheet strength, operating
performance and business profile when compared to the standards
established by A.M. Best Company. In assigning Foresters' rating,
A.M. Best stated that Foresters' rating outlook is "stable", which
means it is unlikely to change in the near future, assuming
Foresters' financial strength is maintained and operations grow.
A.M. Best assigns ratings from A++ to F, A++ being superior ratings
and A and A- being excellent ratings.
(xx) Foresters Equity Services, Inc., 6640 Lusk Blvd, Suite A-202,
San Diego, CA. Member NASD and SIPC
For further information:
For further information: For media queries, please contact: Unity Life,
Alison Stemp, (905) 219-8008, 1-800-267-8777 (toll free), email@example.com;
Foresters, Irene Shimoda, (416) 429-3000 ext 4651, 1-877-664-6602 (toll free),