Help

BI’s Article search uses Boolean search capabilities. If you are not familiar with these principles, here are some quick tips.

To search specifically for more than one word, put the search term in quotation marks. For example, “workers compensation”. This will limit your search to that combination of words.

To search for a combination of terms, use quotations and the & symbol. For example, “hurricane” & “loss”.

Login Register Subscribe

INSURER OUTBIDS BANK ON TAKEOVER

Reprints

WINNIPEG, Manitoba-Great-West Lifeco Inc. last week outbid Royal Bank of Canada in its quest to take over London Insurance Group.

Winnipeg, Manitoba-based Great-West, which writes group and individual life and health insurance, offered $2.9 billion Canadian ($2.08 billion) in cash and securities for all outstanding common shares of London Insurance, based in London, Ontario. London Insurance also writes individual, group life and health insurance.

That bid competed with a June 27 offer by Toronto-based Royal Bank to purchase London Insurance for $2.4 billion Canadian ($1.72 billion). After Royal Bank's offer, London Insurance entered into a support agreement with Royal, agreeing not to solicit or encourage competing bids.

Also, London's majority shareholder, Trilon Financial Corp., entered into a lockup agreement with Royal Bank. Trilon agreed to tender its 57% common share interest in London to Royal.

The support and lockup agreements permitted unsolicited competing bids. The agreements left Royal with three days to match Great-West's offer, which it declined to do.

The London Life Insurance Co., which comprises London Insurance Group's life business, reported 1996 premiums volume of $4 billion Canadian ($2.87 billion). It reported net income of $150 million Canadian ($107.5 million).

Great-West Life Assurance Co., a unit of insurance holding company Great-West Lifeco Inc., reported 1995 premium volume of $1.54 billion Canadian ($1.13 billion). Its 1995 net income was $277.4 million Canadian ($203.3 million).