CUNA Mutual currently holds 87.4% of the shares of CUMIS, and fully supports this transaction
Co-operators Life Insurance and Central 1 Credit Union have entered into an agreement to acquire The CUMIS Group. This transaction is expected to result in a strong, Canadian-owned supplier of insurance products and services to Canadian credit unions and their members.
As per the agreement, Co-operators Life and Central 1, intend to acquire 100% of the issued and outstanding shares of CUMIS. CUNA Mutual Group, based in Madison, Wisconsin, currently holds 87.4% of the shares of CUMIS, and fully supports this transaction. The transaction is expected to close in December 2009.
Upon completion of the transaction and execution of agreements between The Co-operators and Central 1, The Co-operators will own approximately 63.8% to 73% of CUMIS, and Central 1 will own approximately 23.6% to 27% of CUMIS.
The purchase price based on December, 2008 consolidated financial statements, will be approximately CAD232m. The final purchase price will be determined based on closing audited financial statements for 2009. On closing of this deal, Kathy Bardswick will become CEO of CUMIS, in addition to her current role as president and CEO of The Co-operators Group.
Kathy Bardswick, president and CEO of The Co-operators, said: Our longstanding relationships with both CUMIS and Central 1, together with our shared commitment to the co-operative and credit union sector, make this a natural fit for The Co-operators. As a Canadian-owned co-operative, we welcome the opportunity to forge even closer relationships with, and to provide quality insurance-related services to, credit unions and their members.
Don Rolfe, president and CEO of Central 1, said: This acquisition will allow us to ensure credit unions and their members receive efficient service and affordable insurance products. It also diversifies our revenue sources.