UL Mutual, Financial Group and ACA Assurance of Manchester (USA) today announced a reorganization of business between the two firms.

UL Mutual will buy all of ACA’s individual life insurance policies issued before 1997, being 16 000 individual life policies. This transaction is waiting to be approved by Canadian and New Hampshire regulatory authorities.

ACA and UL Mutual have also concluded a renewable 10 years outsourcing agreement for the administration by UL Mutual, on behalf of ACA, of all ACA’s individual life insurance policies issued since 1997.

ACA also at the same time will cease to subscribe new individual life insurance policies with brokers and general agents in Canada.

Moreover, The International Life Insurance Co., a subsidiary of UL Mutual, will cease its activities in automobile and recreational vehicle credit life insurance business. ACA will take over in this market with exactly the same products as The International.

The companies say they based their decisions on the need to focus on their main lines of business — individual life insurance for UL Mutual, employer-employee group insurance for The International, and credit life and travel Insurance for ACA.

UL Mutual, Financial Group and ACA Assurance of Manchester (USA) both have their Canadian Head offices in Trois-Rivières, Que.