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Demutualization
Unity Life Provides Policyholders with Details of Sponsored Demutualization
Special Meeting of Policyholders Scheduled for February 28, 2008
TORONTO - Unity Life of Canada today took an important step toward its proposed sponsored demutualization as it commenced the mailing of information packages to approximately 15,000 eligible policyholders. If the sponsored demutualization is approved, eligible Unity Life policyholders will receive cash payments in exchange for their voting control and their share of the value of Unity Life. Their insurance coverage, policy values, premiums and rights to receive experience dividends will be unaffected by the sponsored demutualization.
The information package follows up on the announcement of August 9, 2007,
that Unity Life and Foresters(TM) have entered into an agreement under which
Foresters will acquire Unity Life and Unity Life will represent Foresters in
the Canadian market as a member of the Foresters group of companies.
Under the agreement, Foresters will sponsor the demutualization of Unity
Life and subsequently subscribe to Unity Life for common shares, payable in
cash. Following the sponsored demutualization, which is subject to approval by
regulatory authorities and eligible voting policyholders of Unity Life, and
the share subscription by Foresters, Unity Life will become a wholly owned
subsidiary of Foresters.
The information package includes the particulars on the amount of the
cash payment that each eligible policyholder will be entitled to receive if
the sponsored demutualization is approved. Also included in the package is a
two-part Policyholder Guide to Sponsored Demutualization containing detailed
information on the sponsored demutualization and a voting form.
"We urge all of our eligible policyholders to vote on this important
proposal," said Anthony Poole, President and Chief Executive Officer of Unity
Life. "The information package is designed to ensure that policyholders have
all the information they require in order to make an informed decision about
sponsored demutualization. At least two-thirds of those who vote must be in
favour of the proposal for it to proceed. The Board of Directors of Unity Life
has recommended this proposal, but ultimately, the policyholders must decide."
Eligible policyholders can vote either by proxy or in person at a special
meeting to be held at the Mississauga Convention Centre at 10:00 a.m. (Eastern
Standard Time) on February 28, 2008.
If the sponsored demutualization goes forward, payments to eligible Unity
Life policyholders will consist of two parts - a fixed portion representing
about 25% of the total payout to eligible policyholders, and a variable
portion dependent on the size and duration of the eligible policy or policies.
The average payout will be approximately $3,300 per eligible policyholder.
To be eligible for cash payments under the demutualization, policyholders
must have had one or more eligible policies in force on the August 9
announcement date.
Eligible policyholders who are unable to attend the special meeting may
cast their vote by completing and returning the voting form that has been
included with the information package. The voting form must be received no
later than 5 p.m. (Eastern Standard Time), on February 25, 2008. The forms
will be independently processed by Equity Transfer & Trust Company.
Parts I and II of the Policyholder Guide to Sponsored Demutualization are
posted on the Unity Life web site at www.unitylife.ca. Policyholders may also
call Unity Life Client Services at 1-866-582-2533 for more information.
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