Sponsored Demutualization Comes to Canada
Financial Institutions and Services Bulletin
August 2008
The first ever sponsored demutualization in Canada became effective on April 2, 2008 between The Independent Order of Foresters and Unity Life of Canada. Unity converted from a mutual life insurance company into a life insurance company with common shares, all of which are owned by Foresters. This bulletin provides a general overview of sponsored demutualization and highlights noteworthy issues that may arise in this type of transaction, providing helpful information to companies that may be contemplating becoming involved in a sponsored demutualization as a converting company or a sponsor.
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