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ARTICLE · 25 JULY 2008

Sponsored Demutualization Comes To Canada

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The Independent Order of Foresters ("Foresters") and Unity Life of Canada ("Unity") recently completed the first sponsored demutualization in Canadian history. Effective April 2, 2008, Unity converted from a mutual life insurance company into a life insurance company with common shares, all of which are owned by Foresters.

CanadaInsurance
Robert McDowell
Robert McDowell
A. Wojtek Baraniak
A. Wojtek Baraniak
Koker Christensen
Koker Christensen
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Originally published in Canadian Insurance Regulation Reporter, Volume 1 No. 3 (June 2008) and reproduced here with the permission of LexisNexis Canada Inc.

The Independent Order of Foresters ("Foresters") and Unity Life of Canada ("Unity") recently completed the first sponsored demutualization in Canadian history. Effective April 2, 2008, Unity converted from a mutual life insurance company into a life insurance company with common shares, all of which are owned by Foresters.

This article provides an overview of sponsored demutualization and highlights noteworthy issues that may arise in this type of transaction with a view to providing helpful information to companies that may be contemplating becoming involved in a sponsored demutualization as a converting company or a sponsor. Some of these issues relate to demutualizations generally and others are unique to sponsored demutualizations.

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