Foresters and Canada Protection Plan announce merger

Fraternal life insurer Foresters Financial and no-medical and simplified life insurance distributor Canada Protection Plan Inc., both based in Toronto, are amalgamating, the companies announced today.

Canada Protection Plan is the sales and marketing organization for Foresters Financial in Canada, and distributes life and critical insurance and related products underwritten by Foresters Life Insurance Company

In Canada, the new entity will be branded as Canada Protection Plan, A Foresters Financial Company, with the Foresters Financial brand remaining the same in all other markets.

“Foresters is strongly committed to its life insurance business in North America and this agreement fits perfectly with our long-term goals,” said Jim Boyle, president and CEO of Foresters Financial, in a release. “It will accelerate the expansion of our business in Canada and we will be well positioned to grow — through innovation, new product development and independent distribution.”

Says Michael Aziz, chief distribution office and co-president of Canada Protection Plan: “Joining with Foresters is a logical evolution for our company. It will open doors to new opportunities for our customers, employees and advisors.”

The organizations will benefit from the sharing of best practices, the companies indicated, leveraging mobile and technology-enabled operations as customers and advisors move increasingly to digital options.

The two companies will remain headquartered in Toronto, and “the status of employees at Foresters and Canada Protection Plan remains unchanged,” the release indicated.

Foresters Financial provides socially responsible financial services, and includes The Independent Order of Foresters, a fraternal benefit society. Foresters offers insurance products to over three million members and clients in Canada, the U.S. and the U.K.

Last year, Foresters decided to exit its North American asset management business to focus on fixed life insurance in North America.  

Foresters sold its U.S. asset management business, including First Investors mutual funds, to Macquarie Investment Management, based in Philadelphia, and its U.S. broker dealer and advisory business to El Segundo, Calif.-based Cetera Financial Group. It also sold Foresters Financial Holding Company, Inc. and its New York-domiciled subsidiary Foresters Life Insurance and Annuity Company to Nassau Life Insurance Company, also based in New York.

Rudy Mezzetta

Rudy is a senior reporter for Advisor.ca and its sister publication, Investment Executive. He has been reporting on tax, estate planning, industry news and more since 2005. Reach him at rudy@newcom.ca.