Clarica shareholders and voting policyholders at a special meeting today approved a combination with Sun Life Financial Services of Canada Inc.

The deal calls for the exchange of 1.5135 Sun Life Financial shares for each Clarica share.

David Ganong, chairman of Clarica’s board of directors, said “shareholders recognized the strengths of this agreement and supported it in spite of opposing influences. They have seen the great potential of the deal today, and they’ll share in its benefits tomorrow.”

Bob Astley, Clarica’s president and CEO, said “the combination of Clarica and Sun Life Financial will provide real benefits to shareholders and all other stakeholders, including customers, staff and the many communities where our employees live and work.”

Shareholders and voting policyholders voting together cast 72.1% of the votes registered at the meeting in favour of the transaction and 27.9% opposed. The proposal required approval by two-thirds of the votes cast at the meeting.

Clarica’s board had recommended acceptance of the proposed transaction, which was announced December 17, 2001.

Regulators must still approve the deal, which is expected to close in the middle of May.

The combined operations will hold leading positions within the Canadian insurance industry, ranking number 1 in most key measures, including assets under management, market capitalization and customer base.