Source: The Canadian Press

Life insurance company Foresters has agreed to buy New York-based asset management and life insurance company First Investors Consolidated Corp.

Terms of the deal announced Tuesday were not disclosed.

Toronto-based Foresters said it will gain through the acquisition a registered broker-dealer, a registered investment adviser, a transfer agent and a life insurance company. FICC has about 700 employees and assets under management of US$6.6 billion.

“This acquisition will further strengthen Foresters market position in the United States and provide Foresters with entry into the U.S. asset management market currently estimated at US$18 trillion,” Foresters president and CEO George Mohacsi said in a statement.

“The acquisition of FICC will allow Foresters to offer a broader array of financial products in the U.S., grow our membership and place us in a stronger position to fulfil our purpose of enriching the lives of our members, their families and their communities.”

The deal is expected to close by Dec. 31.

Foresters is a trade name of the Independent Order of Foresters, a fraternal benefit society. The company has assets of $6.2 billion with liabilities of $4.8 billion resulting in a surplus of $1.4 billion.