MUTUAL LIFE JUMPS HURDLE
By Adnews Staff
Mutual Life of Canada has received regulatory approvals for its purchase of the Metropolitan Life Insurance Company. The deal is expected to close on July 7. Mutual Life plans to buy MetLife for $1.2 billion 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 MetLife of Ottawa. 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%.