NU Online News Service, July 11, 2003, 4:24 p.m. EDT – The Canada Life Assurance Company, Toronto, says it has agreed to sell its life and health insurance business in the Bahamas and the Cayman Islands to Colina Insurance Company Ltd., Nassau, Bahamas.
Colina will hire Canada Life’s employees, use its agents in the Bahamas, and acquire its office building in Nassau, Canada Life says.
Canada Life also has agreed to sell its Puerto Rican and U.S. Virgin Islands group life and health operations to MAPFRE USA, a unit of MAPFRE Mutualidad de Seguros, Avila, Spain.
MAPFRE will hire the Canada Life employees in Puerto Rico, Canada Life says.
The prices of the deals and other terms were not immediately available.
The Great-West Life Assurance Company, Winnipeg, a unit of the Power Company of America, Montreal, completed efforts to acquire Canada Life earlier this week. Rating agencies have suggested that Great-West needs more capital to handle the cost of the Canada Life deal.
Canada Life notes in its deal announcements that it acquired the Caribbean businesses sold today through the 1999 acquisition of Crown Life Insurance Company, Regina, Saskatchewan.
The Caribbean businesses have been successfully developed since 1999, and Canada Life decided to sell the businesses after a strategic review of its operations, Canada Life says.