Co-operators Life Insurance and Central 1 Credit Union complete C$245 million acquisition of The CUMIS Group

Date Closed: 12/31/2009

Value: C$245 million

On December 31, 2009, Co-operators Life Insurance Company and Central 1 Credit Union jointly, through a newly-incorporated subsidiary, completed their acquisition of all of the issued and outstanding shares of The CUMIS Group Limited by way of a court-approved plan of arrangement carried out pursuant to the provisions of the Canada Business Corporations Act for aggregate consideration of approximately CAD$245 million (including a special dividend paid to shareholders in connection with the transaction). The transaction was fully supported by The CUNA Mutual Group, the former majority shareholder of CUMIS, which had held approximately 87.4% of the CUMIS shares.

CUMIS provides a full range of personal insurance to the Canadian credit union system, including credit and mortgage protection, life, disability and critical illness, home, auto, travel and employee benefits. It also provides business, liability and property insurance to credit unions, as well as wealth management services and products, including credit union group retirement plans. The completion of the transaction results in a strong, Canadian-owned supplier of insurance products and services to Canadian credit unions and their members. On completion of certain reorganizational steps involving, among others, CUMIS, Co-operators and Central 1 (expected by mid-2010), Co-operators will hold approximately 73% of CUMIS and Central 1 will hold approximately 27% of CUMIS.

Central 1's legal team was led by Gary Poon and Darren Kozol.  BLG assisted Central 1 on the transaction, with a team including Brian Thom, Robert Owen, Tai Cheng and Will Jones (M&A), Prema Thiele and Andrew Harrison (regulatory), Larissa Tkachenko, Daniel Lang and Doug Powrie (tax), Barry Bresner (reinsurance), Jeffrey Thomas (competition) and Doug Copland (intellectual property and technology).