Kaja Whitehouse, USAToday
Retired basketball superstar Earvin “Magic” Johnson just added a $14.5 billion life insurance company to his growing business and sports empire, Magic Johnson Enterprises (MJE).
On Tuesday, MJE, which Johnson founded in 1987, said it completed its planned acquisition for a “majority, controlling interest” in EquiTrust Life Insurance Company, which manages $14.5 billion in annuities, life insurance and other financial products.
MJE acquired a roughly 60% in EquiTrust from Guggenheim Partners, the New York-based financial giant that bought EquiTrust in 2011. Financial terms weren’t disclosed, but Guggeheim no longer owns a stake in the insurance company, said Paul Miller, COO at EquiTrust.
MJE announced plans to buy a stake in EquiTrust in January 2014. Miller attributed the delay in closing the transaction to the “legal and regulatory” requirements.
Over the years, Johnson has amassed a small empire of investments in sports teams, entertainment assets, restaurants and other businesses through MJE. But the purchase of EquiTrust marks the former Los Angeles Lakers point guard’s first big push into the financial services sector.
The purchase could lead Johnson to speak more on financial literacy education, acting as a kind of spokesperson for his new company.
“We believe financial literacy relative to estate and retirement planning is integral to the community,” said MJE spokewoman Christina Francis. “A well-capitalized company like EquiTrust gives us the platform to accomplish that objective. The company can promote financial literacy in the minority community by emphasizing the importance of life insurance for estate planning and annuities for retirement planning,” she said.
MJE’s portfolio also includes:
*A stake in the Los Angeles Dodgers baseball team
*An investment in Hero Ventures, the company behind The Marvel Experience, a theme-park attraction featuring Marvel’s famous heroes and villains
*A stake in the Los Angeles Sparks Women’s National Basketball Association team
*The Comcast channel ASPiRE, which celebrates the African-American experience
*An investment in Vibe Holdings, a New York-based magazine and television company that focuses on the urban market.
Under MJE’s ownership, Guggenheim will continue to manage money for EquiTrust, MJE said. Miller said the company’s management team will remain the same under the new ownership and that say-to-day operations “will remain largely unchanged.”
Johnson has done business with Guggeheim before, including joining the investment firm in the record $2 billion deal to buy the Los Angeles Dodgers baseball team in 2012.
Source: TD Waterhouse
Mary Forrest, President and CEO of Munich Re North America (Life) has been elected Chair of the Board of Directors of the Canadian Life and Health Insurance Association (CLHIA). In this role, Ms. Forrest becomes the first female executive to lead the national association representing Canada’s life and health insurance sector. She succeeds outgoing Chair of the Board, Donald Guloien, President and CEO of Manulife.
Ms. Forrest oversees the two largest Life reinsurance business units within the Munich Re Group. She is responsible for Munich Re’s Life and Health reinsurance operations in the United States, Canada, and the Caribbean. The North American organization has over 400 employees, located in Canada and the United States.
“CLHIA member companies employ 155,000 people who are focused on the financial security of the vast majority of Canadians, and I’m honoured to play a leadership role in such a vital industry,” said Ms. Forrest. “Under Donald Guloien’s leadership, the CLHIA Board oversaw and advanced many important initiatives for the industry and Canadians, and I look forward to continuing this momentum.”
“Mary has distinguished herself as a committed champion of the life and health insurance industry,” said Frank Swedlove, President and CEO of CLHIA. “We look forward to her leadership and guidance.”
Prior to being named Chair of the Board of CLHIA, Ms. Forrest was Chair of the Standing Committee on Government Relations, as well as member of the Standing Committee on Resources, the Nominating Committee, and Committee on Reinsurance.
Ms. Forrest also contributes globally to the Munich Re Group through her Board leadership; Mary is the past Chairman of the Atlanta based Munich American Reassurance Company Board and a past Director of the Munich Reinsurance Company of Canada and Temple Insurance Company Boards.
About Munich ReMunich Re stands for exceptional solution-based expertise, consistent risk management, financial stability and client proximity. This is how Munich Re creates value for clients, shareholders and staff. In the financial year 2014, the Group – which combines primary insurance and reinsurance under one roof – achieved a profit of €3.2bn on premium income of over €48bn. It operates in all lines of insurance, with over 43,000 employees throughout the world. With premium income of around €27bn from reinsurance alone, it is one of the world’s leading reinsurers. Especially when clients require solutions for complex risks, Munich Re is a much sought-after risk carrier. Its primary insurance operations are concentrated mainly in the ERGO Insurance Group, one of the leading insurance groups in Germany and Europe. ERGO is represented in over 30 countries worldwide and offers a comprehensive range of insurances, provision products and services. In 2014, ERGO posted premium income of €18bn. In international healthcare business, Munich Re pools its insurance and reinsurance operations, as well as related services, under the Munich Health brand. Munich Re’s global investments amounting to €227bn are managed by MEAG, which also makes its competence available to private and institutional investors outside the Group.
DisclaimerThis press release contains forward-looking statements that are based on current assumptions and forecasts of the management of Munich Re. Known and unknown risks, uncertainties and other factors could lead to material differences between the forward-looking statements given here and the actual development, in particular the results, financial situation and performance of our Company. The Company assumes no liability to update these forward-looking statements or to conform them to future events or developments.
SOURCE Munich Re Canada (Life)
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TORONTO – Sun Life Financial Inc. is acquiring real estate investment manager Bentall Kennedy Group for $560 million.
Bentall Kennedy, with some $27 billion of assets under management, operates in both Canada and the United States where it provides specialized real estate investment management and services, including property management and leasing.
Sun Life says the transaction is expected to close in the third quarter and is expected to immediately add to earnings.
Bentall Kennedy will become a unit of Sun Life Investment Management, with the two firms combining their real estate investment management teams.
However, Bentall Kennedy will retain its brand name and be Sun Life’s exclusive real estate investment management platform. Together they will $47 billion in assets under management, serving more than 550 institutional clients and investors.
Sun Life (TSX:SLF) says the deal is part of its strategy to broaden its asset management by expanding and diversifying the capabilities of Sun Life Investment Management, which provides investment services to third parties and manages Sun Life’s general account.
Bentall Kennedy’s institutional shareholders, the British Columbia Investment Management Corp. and the California Public Employees’ Retirement System (CalPERS), have both approved the transaction and will continue to be key clients of Bentall Kennedy under Sun Life’s ownership, the companies said.