Foresters to acquire New York-based First Investors Consolidated Corporation

Acquisition will enhance Foresters U.S. presence, broaden product offerings and benefit its members

TORONTO, Sept. 21 /PRNewswire/ - Foresters(TM) , a life insurance provider committed to the well-being of families, and First Investors Consolidated Corporation (FICC) today announced that they have entered into a definitive agreement under which Foresters will acquire a 100% ownership interest in FICC and its U.S. asset management and life insurance operations. The value of the transaction is not being disclosed at this time.

Founded in 1930, FICC is a privately held, diversified, financial services organization. Headquartered in New York City, FICC has approximately 400 home office employees and assets under management of US$6.6 billion.

Foresters agreement with FICC includes the holding company and its family of companies including: a registered broker-dealer; a registered investment advisor; a transfer agent and a life insurance company. The agreement, which is subject to various conditions, including regulatory approvals in the United States and Canada, and FICC fund shareholder approval, is expected to close by December 31, 2010.

In announcing the agreement, Foresters President and CEO George Mohacsi said: "This acquisition will further strengthen Foresters market position in the United States and provide Foresters with entry into the US asset management market currently estimated at US$18 trillion.

"In FICC, Foresters will be acquiring 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 FICC will allow Foresters to offer a broader array 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 said.

The FICC organization includes more than 700 sales professionals operating out of 46 sales offices in 26 states. Through its registered representatives, FICC 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 subaccounts for its portfolio of variable products.

In commenting on the agreement, Kathryn S. Head, Chairman and CEO of FICC, said: "This transaction represents the culmination of a thorough search for a business partner with a capital structure and financial resources that will position First Investors for significant growth. We found an excellent match in Foresters in terms of operating philosophy, target markets, products and capabilities, and a demonstrated dedication to meeting the needs of its customers."

On completion of the transaction, FICC will continue to operate as a standalone entity within Foresters U.S. Division. Chris Pinkerton, President of Foresters U.S. Division, will relocate to lead FICC as its President and CEO, in addition to his current responsibilities.

"This acquisition is a win-win proposition for both organizations which further reinforces Foresters strong commitment to its current operations and distribution strategy in the United States, Canada and the U.K.," he said.

Mr. Pinkerton indicated that, when the transaction is completed, FICC registered representatives who are life licensed will have the opportunity to market Foresters life insurance products, in addition to the current range of FICC financial products.

About First Investors Consolidated Corporation

First Investors Consolidated Corporation (FICC), 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*.

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 had assets under management (AUM) of US $6.6 billion on behalf of 500,000 accounts as of September 3, 2010. The company's web address is www.firstinvestors.com.

About Foresters

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*. Foresters shares its financial strength with more than 675,000 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.

Foresters(TM) is a trademark of The Independent Order of Foresters, a fraternal benefit society, Toronto, Canada M3C 1T9.

    * 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.

SOURCE Foresters