98.9% of Eligible Policyholders Voting on Proposal Say "Yes"
MISSISSAUGA, ON, Feb. 28 /CNW/ - Unity Life of Canada policyholders voted
to approve the company's proposal to undergo sponsored demutualization at a
special meeting of eligible policyholders held today in Mississauga.
The vote follows the announcement of August 9, 2007, that Unity Life and
Foresters(TM) had 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 is
sponsoring the demutualization of Unity Life and will subsequently subscribe
to Unity Life for common shares, payable in cash. The proceeds will be used to
pay eligible policyholders. Subject to approval by Canadian regulatory
authorities, Unity Life will become a wholly owned subsidiary of Foresters.
The transaction is expected to be completed in April 2008.
"The decision taken today by Unity Life policyholders represents an
important milestone for Unity Life," said Tony Poole, Unity Life President and
CEO. "It's great news for the company and all of its stakeholders as it moves
us closer to concluding our partnership with Foresters. This partnership will
provide the financial backing and access to capital we need to realize our
Canadian growth strategy, while continuing to operate under the Unity Life
brand in the Canadian market. Equally important, it will allow us to provide
greater product selection and valuable Foresters benefits to our future
Mr. Poole noted that, upon completion of the sponsored demutualization,
approximately 15,000 eligible Unity Life policyholders will be entitled to
receive cash payments in exchange for their voting control and their share of
the value of Unity Life. The average payout will be approximately $3,300.
The final result of today's vote shows that, of the eligible
policyholders who voted, over 98.9% were in favour of the proposed
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 192,000 active policies and certificates,
$13.8 billion of insurance in force, and $562 million in assets (all figures
in Canadian dollars as at December 31, 2007). Unity Life's Web address is
Founded in 1874 as a fraternal benefit society, 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 $5.4 billion with liabilities of $4.0 billion resulting in a surplus
of $1.4 billion (all figures in Canadian dollars as of December 31, 2007) 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 735,000 eligible members
and their families in Canada, the United States 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 www.foresters.com.
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),