Toronto-Dominion Bank (TD Bank) and Canada Life Assurance Co. (Canada Life) unveiled an asset swap on November 8, 2000, under which TD Bank’s property and casualty insurance subsidiary, Meloche Monnex Inc., will acquire Canada Life’s property and casualty insurance operations, including about $150 million in premiums. Canada Life will acquire TD Bank’s group savings business, consisting of $5.1 billion in pension assets under administration.
As a result of the deal, Canada Life will become the largest administrators of group savings in Canada, a business consisting of RRSP plans, profit-sharing plans and pensions, with assets under management exceeding $10 billion. TD Bank, in acquiring $150 million in assurance premiums from Canada Life, becomes the second-largest provider of home and automobile insurance to members of professional and university alumni organizations. Its premiums will total $525 million.
Torys is acting for TD Bank on the two transactions, with a core team comprised of Donna Parish, Lucia ten Kortenaar, Chris Fowles, Faeron Trehearne, Chris Medland and Blair Keefe. McCarthy Tétrault is acting for Canada Life.