Western Financial Group Inc. announced today that it has filed a preliminary prospectus for a public offering of subscription receipts.

The proceeds of the offering will be used mainly to fund a portion of the purchase price of the previously announced acquisition of Federated Life Insurance Co. of Canada.

The conclusion of the Federated acquisition remains subject to regulatory approval and is expected to be completed on or before Feb. 28, 2005.

The remainder of offering’s proceeds will be used to fund Western Financial’s ongoing broker acquisition program and for general working capital purposes.

Each subscription receipt will entitle the holder to receive one common share of Western Financial upon closing of the Federated acquisition.

The offering will be conducted through a syndicate of underwriters led by CIBC World Markets Inc. and including Canaccord Capital Corp., First Associates Investments Inc. and Jennings Capital Inc.