To strengthen the core businesses of both organizations, The Co-operators and Central 1 Credit Union are announcing a change in their partnership.
To create a stronger focus on key strategic priorities, Central 1 will remove its ownership interest in the CUMIS insurance operations, which it has shared with The Co-operators since 2009. CUMIS General Insurance Company and CUMIS Life Insurance Company will then become fully owned subsidiaries of The Co-operators.
“This change simplifies our structure and operations,” says Rob Wesseling, president and CEO, The Co-operators. “We continue to enjoy a strong relationship with Central 1 through our shared interest in Aviso Wealth, and mutual commitment to credit unions.”
“As Central 1 launches its new strategic plan, it’s critical that we concentrate our efforts on products and services where our expertise is best leveraged,” says Mark Blucher, CEO of Central 1. “This shift allows us to focus our attention and resources on banking and payments solutions that provide the greatest value to our clients and their customers.”
With a vision of being the national partner of choice for financial, digital banking and payment solutions, this shift allows Central 1 to invest more in those areas where its scale and knowledge provide a competitive advantage, and supports the well-being of members, clients and consumers.
“This direction is firmly based on our three strategic pillars of client centricity, operational excellence and system leadership,” adds Blucher. “Our goal is for Central 1 to be the partner of choice who puts the focus on our clients and their needs, and creates a system environment that helps credit unions and their members thrive.”
The Co-operators will retain the CUMIS brand in the credit union marketplace.
“The Co-operators has recognized the strength and significance of the CUMIS brand for many years; it was part of the reason we sought to acquire CUMIS almost a decade ago,” adds Wesseling. “We remain deeply invested in the success of credit unions, and our products and services will continue to evolve to meet their needs.”
All due diligence has been completed in the required legal, tax, valuation and financial areas for the benefit of both organizations, their members and clients.
The transaction is expected to close March 31, 2018, subject to approval from regulators and compliance with customary closing conditions. Immediately following the transaction, CUMIS General Insurance Company will be restructured to become a subsidiary of Co-operators General Insurance Company.
Announced in December, Aviso Wealth (www.aviso.ca) was created to meet the expanding wealth management needs of clients and credit union members across the country. It will be a Canadian financial services leader with notable strengths in wealth management, asset management, online brokerage and digital advice, mutual funds and correspondent services.