By James Langton

(April 9 – 13:50 ET) – In its just-filed 2000 annual report, Clarica Life Insurance Co. defends its in-house sales force strategy, and girds itself for acquisition.

In a letter to shareholders from Clarica CEO Bob Astley, the firm says, “We talk about our sales force with pride, but it’s a pride based on solid evidence. Research and our results show that customers value and are willing to pay for the advice and service our agents provide. Our own studies show that the net cost of maintaining our sales force compares well with other models and is very competitive.”

Astley notes that the firm will be attempting to complement its sales force with technology, rather than using technology to replacing agents. “Our e-Business strategy is an important one,” he says, “The agent is the relationship manager, supplemented and supported by technical specialists, alliance partners, our Customer Service Centre, as well as Internet-based and other technologies. Technology does not compete with the agent; it’s all about an integrated approach that will strengthen and enhance the relationship between agents and customers.”

As for the possibility of a market rival taking over Clarica, Astley says that the firm is prepared to compete in the free market, but he indicates that the firm recognizes that near-inevitability of a takeover. “We know we’re attractive to potential acquirers. In fact, if no one wanted to buy the company, it would mean we were off the mark in what we were doing. We will continue to take all necessary steps to enhance value for our shareholders and meet our commitments.”

In the meantime, the firm will focus on building its brand and its market penetration in the United States and Canada. “Rapid change will dominate business for a long time to come, but here are what I see as the constants. We are committed to shareholder value. We are committed to serving customers for the long term. We are committed to the members of Clarica who have chosen to make their livelihood with us. We are committed to the communities where we are a deep part of the fabric. Clarica can meet all of these commitments and succeed. “