Co-operators Life Insurance Company and Central 1 Credit Union to acquire The CUMIS Group Limited

BURLINGTON - Co-operators Life Insurance Company (Co-operators Life) and Central 1 Credit Union (Central 1) announced an agreement to acquire The CUMIS Group Limited (CUMIS), subject to regulatory, shareholder and court approvals and other standard closing conditions. This transaction would result in a strong, Canadian-owned supplier of insurance products and services to Canadian credit unions and their members. Based on December 31, 2008 consolidated financial statements, the purchase price will be approximately C$232 million. The final purchase price will be determined based on closing audited financial statements for 2009 subject to final closing adjustments.

CUMIS provides a full range of personal insurance, including credit and mortgage protection; life; disability and critical illness; home; auto; travel and employee benefits. It also provides business, liability and property insurance to credit unions themselves, as well as wealth management services and products, including credit union group retirement plans. All existing CUMIS insurance policies remain in effect with no changes. Co-operators Life is a wholly-owned subsidiary of The Co-operators Group Limited (The Co-operators). For 23 years, The Co-operators and CUMIS have had a joint insurance business venture, through which CUMIS provides insurance products and services to approximately 450 Canadian credit unions and caisses populaires, and their more than five million members.

Co-operators Life, based in Regina, Saskatchewan, and Central 1, headquartered in Vancouver, B.C., intend to acquire 100 per cent of the issued and outstanding shares of CUMIS, pending required approvals. CUNA Mutual Group, based in Madison, Wisconsin, currently holds 87.4 per cent of the shares of CUMIS, and fully supports this transaction. The transaction is expected to close on or about December 31, 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 per cent to 73 per cent of CUMIS and Central 1 will own approximately 23.6 per cent to 27 per cent of CUMIS.

"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," said Kathy Bardswick, President and CEO of 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."

"This investment fits well with our vision and we are pleased to partner with The Co-operators in this business opportunity," said Don Rolfe, President and CEO of Central 1. "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."

"As the leading provider of insurance-related products and services to the Canadian credit union system outside Quebec, CUMIS has been focused on helping credit unions protect themselves and their members for more than 70 years," said Kenn Lalonde, President and CEO of CUMIS.

"The Co-operators, Central 1 and CUMIS share strong co-operative values along with a commitment to community and to the credit union system. This deal can only enhance our ability to continue to meet and exceed our customers' expectations."

"The time is right for all of the organizations involved to make this move," said Jeff Post, President and CEO of CUNA Mutual. "For CUNA Mutual, it improves our flexibility to diversify and pursue new avenues for growth. For the Canadian companies involved, it joins three organizations with like-minded values and a long-time commitment to the Canadian credit union system."

In addition to her role as President and CEO of The Co-operators Group, Kathy Bardswick will become CEO of CUMIS on closing of this deal.