Foresters buys Aegon companies

first_img Keywords Mergers and acquisitions Megan Harman Toronto-based life insurer The Independent Order of Foresters is stepping into the Canadian asset management business through its plan to acquire Aegon Capital Management (ACM) and Aegon Fund Management (AFM). Under an agreement announced on Tuesday, Foresters will acquire 100% of the shares of ACM and AFM from Proj Fox Acquisition Inc., an intermediate holding company owned by Bermuda-based life reinsurance company Wilton Re Ltd. ACM and AFM were sold to Wilton Re by Aegon N.V. in 2014, in a transaction that also included Transamerica Life Canada. Cidel Asset Management to acquire fixed income manager Tuesday’s deal adds mutual funds to Foresters’ lineup of financial services offerings, as well as institutional investment capabilities. Specifically, AFM offers six mutual funds to Canadian investors under the imaxxFunds banner, while ACM oversees more than $10 billion in institutional investments. “This acquisition gives us the opportunity to offer our current members and future members and customers a broader array of financial services products,” says Tony Garcia, president and CEO of Foresters. “We’ve been predominantly, in Canada, a life insurer, so we believe that there are families out there who will benefit from us being able to offer additional products.” Foresters entered the U.S. asset management business in 2011, with the acquisition of New York City-based First Investors Consolidated Corp. Since then, Garcia says, the company has been looking for opportunities to further expand its presence in the investment-management market. The new product line in the Canadian market will create cross-selling opportunities for financial advisors, Garcia says. “We have our core product offering — life insurance — through independent brokers in Canada and, in some situations, they offer mutual funds to their clients. So, I think it would be helpful there,” Garcia says. “Also, on the mutual fund side of the business, there’s a solid base of distributors that may benefit from our life and annuity products.” The deal brings Foresters’ total funds under management to $44 billion. The transaction is subject to Canadian regulatory approval, and is expected to close in May. Related news Desjardins buys Montreal boutique firm Hexavest CI acquires US$5.1B San Diego-based RIA FAIR Canada not in favour of regulators’ stance on best interest standard Share this article and your comments with peers on social media Facebook LinkedIn Twitterlast_img read more