Life insurance provider continues to grow despite challenging economic times
TORONTO, Oct. 25, 2012 /PRNewswire/ - Foresters™, a leading international life insurance provider announced today it now has one million member customers across Canada, the US and the UK.
The million-member milestone is the latest in a series of positive developments for Foresters. Earlier this year, the organization announced that A.M. Best Company had affirmed its "A" (Excellent) rating1 for the 12th consecutive year. Foresters subsidiary Foresters Life Insurance Company was upgraded from "A-" to "A". First Investors Life Insurance Company, also a Foresters subsidiary, received an "A-" rating.
"It's very rewarding to know we are helping more than one million members plan for their future," says George Mohacsi, President and CEO, Foresters. "In challenging economic times, reaching this milestone is a testament to Foresters financial strength and stability. We're looking forward to increased growth and to continuing to improve the well-being of families and their communities."
Reaching one million members caps off several years of progressive growth and strategic change since Mohacsi was appointed President and CEO in 2005. During this time, Foresters has reorganized its sales organization, launched a new brand and increased its member base from 650,000 to one million, mostly through strategic acquisitions in Canada, the US and the UK.
In 2011, Foresters strengthened its market position in the US with the acquisition of First Investors, an investment management and life insurance organization with a distribution network targeting the same demographic as Foresters. Also in 2011, the Communication Workers Friendly Society merged into Forester Life, the UK operations of Foresters. And a 2008 acquisition of Canadian insurer Unity Life, now Foresters Life Insurance Company, resulted in immediate sales growth in the Canadian market.
Mohacsi credits Foresters stability to a conservative investment strategy which resulted in a strong surplus of $1.4 billion CDN2, assuring its ability to withstand adverse business and market conditions. With a Minimum Continuing Capital and Surplus Requirements (MCCSR) ratio of 336% as of December 31, 2011, Foresters solvency ratios3 are above local regulatory requirements and industry averages in all three countries in which it operates (all figures as of December 31, 2011).
Foresters™ is a life insurance provider with a difference. The fraternal benefit society, founded in 1874, supports family well-being through quality products, unique member benefits and inspiring community activities. Foresters shares its financial strength with over one million members in Canada, the United States and the United Kingdom. Foresters has assets of over $8.6 billion with liabilities of $7.1 billion resulting in a surplus of $1.4 billion (all figures in Canadian dollars as of December 31, 2011) and maintains an "A" (Excellent) rating by A.M. Best1. For more information, visit foresters.com.
ForestersTM is the trade name and a trademark of The Independent Order of Foresters, a fraternal benefit society, 789 Don Mills Road, Toronto, Canada M3C 1T9; its subsidiaries are licensed to use this mark.
1 An "A" (Excellent) rating is assigned to companies that have a strong ability to meet their ongoing obligations to policyholders and have, on balance, excellent balance sheet strength, operating performance and business profile when compared to the standards established by A.M. Best Company. A.M. Best assigns ratings from A++ to F, A++ and A+ being superior ratings and A and A- being excellent ratings. In assigning the ratings for The Independent Order of Foresters (Foresters) and its subsidiaries Foresters Life Insurance Company and First Investors Life Insurance Company on July 6, 2012, A.M. Best stated that the outlook for all ratings is "stable", which means they are unlikely to change in the near future. See ambest.com for the latest ratings.
2This surplus represents excess funds above the amount required as legal reserves for insurance and annuity certificates in force and provides additional assurances to members for Foresters long term financial strength.
3Solvency ratios indicate that Foresters ability to meet long-term obligations is above and beyond what is required.