TORONTO, Jan. 20 /PRNewswire/ - Foresters(TM), a life insurance provider committed to the well-being of families, and First Investors Consolidated Corporation today announced completion of the agreement under which Foresters has acquired a 100% ownership interest in First Investors and its U.S. asset management and life insurance operations. The transaction, which closed January 19, 2011, has successfully met a number of conditions, including regulatory approvals in the United States and Canada, and First Investors fund shareholder approval.
First Investors is a privately held, diversified, financial services organization founded in 1930. With headquarters in New York City, First Investors has approximately 400 home office employees and assets under management of US$7.0 billion. The acquisition includes First Investors' holding company and its family of companies including: a registered broker-dealer, a registered investment advisor, a transfer agent and a life insurance company.
Foresters President and CEO George Mohacsi said: "Today's announcement represents a major development for Foresters. First Investors is a successful investment management and life insurance organization with a significant national distribution network that targets the same demographic market as Foresters.
"The acquisition of First Investors further strengthens Foresters market position in the United States and provides us with access to the U.S. asset management market currently estimated at US$18 trillion. As a result, Foresters will be able to offer a broader range of financial products in the U.S., grow our membership, and place us in a stronger position to fulfill our purpose of enriching the lives of our members, their families and their communities," he continued.
Kathryn S. Head, Chairman and CEO of First Investors, said: "We are delighted to have concluded this transaction and look forward to working together with such a sound and compatible business partner. Foresters is an excellent match for First Investors in terms of operating philosophy, target markets, products and capabilities and has the capital structure and financial resources to position First Investors for future growth and success."
The First Investors organization includes more than 700 sales professionals operating out of 46 sales offices in 26 states. Through its registered representatives, First Investors provides investment management and life insurance services to the middle market. It offers 27 retail mutual funds, as well as 12 funds that serve as sub-accounts for its portfolio of variable products.
First Investors will continue to operate as a standalone entity within Foresters U.S. Division. Chris Pinkerton, President of Foresters U.S. Division, is relocating to lead First Investors as its President and CEO, in addition to his current responsibilities.
Mr. Pinkerton indicated that First Investors registered representatives who are life licensed will now have the opportunity to market Foresters life insurance products, in addition to the current range of First Investors financial products.
Founded in 1874 as a fraternal benefit society, Foresters(TM) champions the well-being of families through quality life insurance, unique member benefits and inspiring community activities. Foresters has assets of $6.2 billion with liabilities of $4.8 billion resulting in a surplus of $1.4 billion (all figures in Canadian dollars as of December 31, 2009) and maintains an "A" (Excellent) rating by A.M. Best(x). Foresters shares its financial strength with more than 765,000 members in Canada, the United States and the United Kingdom. Foresters Equity Services, Inc.+, a wholly owned subsidiary of Foresters, offers investment products in the U.S. Unity Life of Canada++, a wholly owned subsidiary of Foresters, represents Foresters in Canada. For more information, please visit www.foresters.com.
About First Investors Consolidated Corporation
First Investors Consolidated Corporation, together with its subsidiaries, is a privately-held diversified financial services organization that provides investment management services to the broad middle market as the investment advisor to, and the distributor for, the First Investors family of mutual funds and life insurance products. The First Investors family of companies includes: First Investors Corporation (FIC) a registered broker-dealer; First Investors Management Company, Inc. (FIMCO), a registered investment advisor responsible for portfolio management of the FI funds; Administrative Data Management Corporation (ADM), a transfer agent and First Investors Life Insurance Company (FIL). FIL maintains an "A-" (Excellent) rating by A.M. Best(x).
Since its founding in 1930, First Investors has followed the guiding principle of personal service to connect "Main Street to Wall Street" by helping middle market investors reach their financial goals. With corporate headquarters in New York City and administrative offices and a data center in Edison, New Jersey, the company has assets under management (AUM) of US $7.0 billion on behalf of 500,000 accounts. The company's web address is www.firstinvestors.com.
Foresters(TM) is a trademark of The Independent Order of Foresters, a fraternal benefit society, Toronto, Canada M3C 1T9.
(x) 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. In assigning Foresters rating, A.M. Best stated that Foresters rating outlook is "stable", which means it is unlikely to change in the near future, assuming Foresters financial strength is maintained and operations grow. A.M. Best assigns ratings from A++ to F, A++ being superior ratings and A and A- being excellent ratings.
+ Investments offered through Foresters Equity Services, Inc. Member FINRA, SIPC, 6640 Lusk Blvd., Suite A-202, San Diego, CA 92121 T. 858 550 4844.
++ Unity Life of Canada, a Foresters company, is a wholly owned subsidiary of The Independent Order of Foresters.