Foresters to Add $7.5 Billion of Assets With Canada Acquisition

  • Deals for former Aegon units are in Canadian asset management
  • Businesses set to be indirectly acquired from Wilton Re

Foresters, the financial-services firm that began in 1874, agreed to acquire two units formerly owned by Dutch insurer Aegon NV to expand in Canada and add about C$10 billion ($7.5 billion) in fixed-income and equity assets under management.

The addition of Aegon Capital Management and Aegon Fund Management will bring total funds under management to about C$44 billion, Foresters said in a statement Tuesday.

Foresters Chief Executive Officer Tony Garcia has been bolstering leadership and rebranding since taking over in May 2014. The closely held company is based in Toronto and tied to the Independent Order of Foresters, a fraternal benefit society. It sells life insurance, savings products and retirement offerings and has more than 3 million clients and members in Canada, the U.S. and U.K.

The deal will “will enable us to enter the Canadian asset-management market,” Garcia said in the statement. We “see strong synergies between our Canadian life and annuity products and services ” and Aegon Fund Management’s offerings. He said Aegon Capital Management has a “solid track record” on the institutional side of the business.

The businesses are being acquired from a unit of Wilton Re Ltd., which is owned by the Canada Pension Plan Investment Board. Wilton completed the purchase of much of Aegon NV’s operations in Canada in July.

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