FaithLife acquires Woman’s Life

Mergers and acquisitions activity in Canada continues its slow but steady progress as another number gets added to its 2010 tally. A recent federal regulatory approval made it possible for Waterloo-based FaithLife Financial to acquire U.S.-based Woman’s Life.

Effective January 1, 2010, FaithLife Financial, a not-for-profit, member-based financial services organization, assumes direct responsibility for all the duties, obligations and liabilities set out in the policies of Woman’s Life, an organization founded by women for women.

“We look forward to serving the Canadian members of Woman’s Life with the same care that we extend to all of our members,” said Karen Bjerland, president and CEO, FaithLife Financial. “This acquisition is a significant growth opportunity for FaithLife Financial, which benefits all FaithLife Financial members, old and new.”

The transaction adds to FaithLife Financial approximately 1,400 life insurance policies, totalling about $18 million. The terms and conditions of the policies, previously held with Woman’s Life Insurance Society, will remain unchanged. And while the dividend rates will continue to be set by Woman’s Life, FaithLife Financial will directly pay any and all future dividends in relation to the policies at the rates set by Woman’s Life.

“We are so very pleased that FaithLife Financial will be taking care of our Canadian members,” said Janice Whipple, national president of Woman’s Life Insurance Society “Their long history as a financially sound fraternal organization and their commitment to their members, as well as their charitable and outreach programs, made them an ideal choice. We know our Canadian members will be well taken care of.”

The latest Canadian acquisition comes on heels of a disappointing M&A report card issued by KPMG. The advisory firm expects the year’s final tally for M&A deals involving Canadian companies to be just over 1,800, a small decrease from 2009.

The pace of M&A activity picked up in the second half of 2010 as the result of improved conditions for raising money on the debt and equity markets. The number of deals will continue to increase in the first half of 2011, noted the KPMG report.

The strong loonie and the turbulence in European markets are creating opportunities for Canadian companies to make acquisitions abroad.

The biggest single Canadian deal completed this year was the $6.8-billion acquisition of Red Back Mining by Kinross Gold Corp.