The Co-operators, a Canadian member of the International Cooperative and Mutual Insurance Federation (ICMIF), this week announced that it would assume full ownership of CUMIS General Insurance Company and CUMIS Life Insurance Company. Since 2009 The Co-operators and Central 1 have shared ownership of the two insurance companies which will soon become fully owned subsidiaries of The Co-operators.
Both The Co-operators and Central 1 Credit Union say that the move will strengthen the core businesses of their respective organizations.
“This change simplifies our structure and operations,” says Rob Wesseling, President and CEO, The Co-operators. “We continue to enjoy a strong relationship with Central 1 through our shared interest in Aviso Wealth, and mutual commitment to credit unions.”
The Co-operators will retain the CUMIS brand in the credit union marketplace.
“The Co-operators has recognized the strength and significance of the CUMIS brand for many years; it was part of the reason we sought to acquire CUMIS almost a decade ago,” adds Wesseling. “We remain deeply invested in the success of credit unions, and our products and services will continue to evolve to meet their needs.”
All due diligence has been completed in the required legal, tax, valuation and financial areas for the benefit of both organizations, their members and clients.
The transaction is expected to close by the end of March 2018, subject to approval from regulators and compliance with customary closing conditions. Immediately following the transaction, CUMIS General Insurance Company will be restructured to become a subsidiary of Co-operators General Insurance Company.
Announced in December, Aviso Wealth (www.aviso.ca) was created to meet the expanding wealth management needs of clients and credit union members across the country. The organisation says it aims to be seen as a Canadian financial services leader with notable strengths in wealth management, asset management, online brokerage and digital advice, mutual funds and correspondent services.
About The Co-operators and CUMIS
The Co-operators Group Limited is a Canadian co-operative with more than CAD 48 billion in assets under administration. In addition to wealth management products, The Co-operators offers home, auto, life, group, travel, commercial and farm insurance. The Co-operators is well known for its community involvement and its commitment to sustainability, and is listed among the Best Employers in Canada by Aon Hewitt and Corporate Knights’ Best 50 Corporate Citizens in Canada. The CUMIS Group Limited (CUMIS), which is jointly owned by Co-operators Life Insurance Company and Central 1 Credit Union, partners with credit unions to deliver competitive insurance and financial solutions. As the leading provider of insurance-related products and services to the Canadian credit union system, CUMIS serves approximately 380 credit unions, with a total of more than five million members.
