May 26, 1998
Deputy Premier and Crown Investments Corporation Minister Dwain Lingenfelter today welcomed the sale of most of Crown Life's insurance business to Canada Life.
"The deal secures jobs in Regina, provides an opportunity to grow as part of a larger company and will allow the province to recover its investment in Crown Life," Lingenfelter said.
The province, through Crown Investments Corporation, owns 94 per cent of HARO Financial corporation which holds 64.44 per cent of Crown Life's common shares. It provided $272 million to help bring the company to Regina and a further loan of $149.5 million in 1995. The 1995 loan will be repaid when the deal closes and the balance of the province's investment will be recovered from the $1.5 billion in assets which remain in the hands of Crown Life.
"Crown Life has improved its financial position since coming to Regina, but like all companies in the financial services industry, it has been forced to consider its future viability in the face of rapid consolidation," Lingenfelter said. "It has concluded that the best way to secure the future is to join its insurance business with the much larger entity of Canada Life."
"CIC has negotiated a Memorandum of Understanding with Canada Life which sets out its commitments to jobs in its new Western Regional Office as well as programs to support the Saskatchewan community," Lingenfelter concluded. "We look forward to a long and fruitful relationship, as one of the top five companies in the industry uses Regina as a base to expand its business in Western Canada."
Crown Investments Corporation
Phone: (306) 787-4553