TORONTO, June 10, 2013 /CNW/ - E-L Financial Corporation Limited (ELF, ELF.PR.F, ELF.PR.G, ELF.PR.H) today announced an agreement to sell its wholly-owned subsidiary The Dominion of Canada General Insurance Company to The Travelers Companies, Inc. (NYSE: TRV) for $1.125 billion in cash, subject to adjustment. The transaction is expected to close before the end of 2013, subject to regulatory approval and customary closing conditions.
"We are extremely proud of what The Dominion team has achieved over the years. We could not be happier that Travelers, a highly respected and well capitalized firm, will be the platform for future growth and success" stated Mr. Duncan N.R. Jackman, President and Chief Executive Officer of E-L Financial.
E-L Financial operates as an investment and insurance holding company. In addition to The Dominion, E-L Financial owns 80% of The Empire Life Insurance Company, which underwrites life and health insurance policies and provides segregated funds, mutual funds and annuity products. E-L Financial remains committed to Empire Life and the life insurance industry in Canada. E-L Financial has not yet determined its plans for the proceeds of the sale.
Founded in 1887 with Sir John A. Macdonald as its first president, The Dominion established its headquarters in Toronto when the city's population was just 181,000. Expanding across Canada over the decades to come, the company has withstood more than a century of economic change to earn a reputation for stability, integrity and strength. "The history of The Dominion is special and it parallels that of Canada itself" says The Hon. Henry N.R. Jackman, who is now Honorary Chairman of the Board of Directors of The Dominion. The Dominion is one of the country's largest property and casualty insurers with its head office in Toronto at the corner of University Avenue and Adelaide Street in downtown Toronto. The Dominion also has regional offices across Canada in Vancouver, Edmonton, Calgary, London, Oakville, Markham, Ottawa, Charlottetown, and Halifax.
Caution Concerning Forward-Looking Statements
Certain statements made in this news release, including, but not limited to, statements relating to the proposed sale of The Dominion of Canada General Insurance Company to The Travelers Companies, Inc., the expected closing date of the transaction, and other statements that are not historical facts, are forward-looking. Forward-looking statements, by their very nature, are subject to inherent risks and uncertainties and are based on several assumptions which give rise to the possibility that actual results or events could differ materially from our expectations expressed in or implied by such forward-looking statements. As a result, we cannot guarantee that any forward-looking statement will materialize and you are cautioned not to place undue reliance on these forward-looking statements. The forward-looking statements contained in this news release describe our expectations at the date of this news release and, accordingly, are subject to change after such date. Except as may be required by Canadian securities laws, we do not undertake any obligation to update or revise any forward-looking statements contained in this news release, whether as a result of new information, future events or otherwise. Forward-looking statements are provided herein for the purpose of giving information about the proposed transaction referred to above and its expected impact. Readers are cautioned that such information may not be appropriate for other purposes. The timing and completion of the above-mentioned proposed transaction is subject to customary closing conditions, termination rights and other risks and uncertainties including, without limitation, regulatory filings and approvals. Accordingly, there can be no assurance that the proposed transaction will occur, or that it will occur at the expected time or on the terms and conditions contemplated in this news release. The proposed transaction could be modified, restructured or terminated. There can also be no assurance that the strategic benefits expected to result from the transaction will be fully realized.
SOURCE: E-L Financial Corporation Limited
For further information:
Richard B. Carty
Vice President, General Counsel and Corporate Secretary
Telephone: (416) 350-7742
Fax: (416) 362-2592