Becomes Canada's largest provider of creditor insurance solutions for mortgage brokers
WATERLOO, ON, Oct. 24, 2012 /CNW/ - Manulife Financial announced today that it has purchased Benesure Canada Inc., Canada's leading third party administrator and distributor of life and disability creditor insurance solutions to the mortgage broker marketplace.
With the announcement of this transaction, Manulife Affinity Markets becomes Canada's largest provider of creditor insurance solutions for mortgage brokers, currently earning premiums in excess of $65 million from more than 170,000 Benesure Canada Inc. clients.
"Strategically, this is an important purchase for Manulife," said Gavin Robinson, Senior Vice-President and General Manager of Manulife Affinity Markets. "With this acquisition we are well positioned to serve even more Canadians and meet their broad range of insurance needs. Establishing a leadership position in the mortgage creditor insurance marketplace and expanding our reach among mortgage brokers represents an opportunity for growth in a highly-stable, key Canadian market. The combined expertise and capabilities of the two organizations will also enable us to leverage other areas of our business and provide additional distribution opportunities for other products."
John Lorriman, President and Chief Executive Officer of Benesure Canada Inc., added: "We are very pleased to conclude this transaction with Manulife Financial. Our longstanding relationship with Manulife ensures that we will be able to continue and enhance our longtime commitment to delivering excellent solutions to both the mortgage industry and Canadian borrowers. It is a real pleasure to see a major financial institution making such a large commitment to the mortgage industry."
Manulife Affinity Markets and Benesure Canada Inc. have been business partners for many years - with Manulife providing product, pricing and underwriting expertise while Benesure administers and distributes the Mortgage Protection Plan and Credit Security Plan products across Canada.
"Benesure Canada Inc. is a high-calibre organization," added Mr. Robinson. "We are impressed with their strong leadership team and the solid strategies they have developed. We look forward to further building a leadership position in the mortgage creditor marketplace, particularly among mortgage brokers."
This latest pending acquisition announcement complements other Manulife Financial transactions including Pottruff & Smith Travel Insurance Brokers Inc. (2009) and, most recently, the acquisition of Wellington West Financial Services Inc. (2012).
The transaction is expected to close in the fourth quarter subject to regulatory approvals.
About Benesure Canada Inc.
Benesure Canada Inc. provides creditor life and disability insurance under the brand names of Mortgage Protection Plan and Credit Security Plan distributed through mortgage brokers and non-bank lenders. Its insurance distribution arm, Credit Security Insurance Agency, operates in all provinces. The organization, which employs more than 50 people including regional representatives across Canada, is located in Kleinburg, Ontario.
About Manulife Financial
Manulife Financial is a leading Canada-based financial services group with principal operations in Asia, Canada and the United States. In 2012, we celebrate 125 years of providing clients strong, reliable, trustworthy and forward-thinking solutions for their most significant financial decisions.
Our international network of employees, agents and distribution partners offers financial protection and wealth management products and services to millions of clients. We also provide asset management services to institutional customers.
Funds under management by Manulife Financial and its subsidiaries were C$514 billion (US$504 billion) as at June 30, 2012. The Company operates as Manulife Financial in Canada and Asia and primarily as John Hancock in the United States.
Manulife Financial Corporation trades as 'MFC' on the TSX, NYSE and PSE, and under '945' on the SEHK. Manulife Financial can be found on the Internet at manulife.com.
SOURCE: Manulife Financial Corporation
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