NU Online News Service, May 4, 2004, 12:01 p.m. EDT – Royal Bank of Canada, Toronto, has completed the previously announced acquisition of a Canadian unit of UnumProvident Corp., Chattanooga, Tenn.[@@]
Royal Bank acquired the unit, Provident Life and Accident Insurance Company, Burlington, Ontario, through a reinsurance arrangement. Acquiring and supporting the unit will cost the equivalent of about $380 million, Royal Bank estimates.
Provident Life has about 600 employees and generates more than $350 million in annual premium revenue by selling group disability, group life, individual disability, individual critical illness and individual long term care insurance. The company has been selling its products through a network of independent brokers, investment advisors and managing general agents.
Royal Bank announced back in November 2003 that it will be folding Provident Life into its own RBC Insurance living benefits operation.
UnumProvident expects to release its first-quarter earnings Wednesday.