Co-operators Life Insurance Co. and Central 1 Credit Union have completed of their acquisition of The CUMIS Group Ltd. of Burlington, Ont., the companies announced Monday.

The transaction was completed on Dec. 31, 2009. Upon execution of agreements between Co-operators Life and Central 1, expected to be completed by March 31, 2010, The Co-operators group of companies will own approximately 73% and Central 1 will own approximately 27% of CUMIS.

All required approvals have been granted, and the transaction was unanimously approved by CUMIS’ shareholders in November.

Announced on Sept. 17, 2009, the transaction will result in a Canadian-owned insurance company that provides products and services to Canadian credit unions and their members. Prior to this transaction, the majority shareholder of CUMIS was CUNA Mutual Group of Madison, Wisconsin. The pre-dividend distribution purchase price was $245.4 million, subject to post-closing adjustments.

“This is an exciting growth opportunity for Co-operators Life, which also strengthens our bonds with the Canadian credit union system,” says Kathy Bardswick, president and CEO of The Co-operators Group Ltd. and the new CEO of CUMIS. “We look forward to meeting and exceeding the insurance needs of credit unions, caisses populaires and their members throughout the country in the years ahead.”

CUMIS provides a full range of personal insurance, 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 themselves, as well as wealth management services and products, including credit union group retirement plans.

“This acquisition will provide growth opportunities by building on our relationships with credit unions,” said Don Rolfe, president and CEO of Central 1. “We believe this is a strategic investment that offers the potential to improve our members’ experience and create value for them.”

All existing CUMIS insurance policies remain in effect with no changes, the companies said.

IE