MUTUAL LIFE TO BUY METLIFE
By Adnews Staff
Mutual Life Insurance Co. plans to buy Metropolitan Life Insurance's Canadian operations for $1.2 billion(US). The move will make Mutual Life of Waterloo, Ont. the fourth largest life insurance company in terms of worldwide assets. The acquisition will also strengthen Mutual Life's presence in Quebec and the Canadian Asian market, as well as increase its portfolio of corporate customers. Advertising for Mutual Life is primarily done in-house. The company only does regional advertising. Young & Rubicam of Toronto creates ads for Metropolitan Life of Ottawa. Mutual Life government and media relations consultant Frank Bomben told Adnews last week that Mutual Life hasn't made any decisions on how advertising will be handled once the deal is finalized. As a result of the agreement, Mutual Life will shed 1,100 positions. Mutual's market share of premium income will increase from 10% to 16% in individual life insurance and to over 10% in group insurance, compared to its current 7%. The deal is expected to close at the end of June.