(November 9 – 18:55 ET) – Crown Life Insurance Co. is reporting improved results for the nine months ended September 30. Net income was $27.4 million, compared with $22.6 million reported for the corresponding period in 1999.

Crown Life says the improvement in results primarily reflects higher returns on the company’s invested asset portfolio. Earnings per share was $5.93, compared with $4.57 for the first nine months of 1999.

On October 24, Crown Life announced a series of transactions which, when completed, will have the effect of all common shares of Crown Life not currently owned by HARO Financial Corp. and Extendicare Inc. (the “Minority Common Shares”) being purchased and cancelled by Crown Life.

The company says the transactions provide liquidity at fair value for holders of Minority Common Shares, and will simplify the shareholder structure of the company in anticipation of the sale of its remaining insurance operations under options which become exercisable on January 1, 2004.

Crown Life has made an offer to acquire all of its outstanding common shares for a price of $123 per common share pursuant to an issuer bid, which expires on November 21, 2000.
HARO and Extendicare have agreed not to deposit to the issuer bid the common shares of Crown Life currently held by them.

Concurrently, 3660257 Canada Ltd. (“Bidco”), a company owned by HARO and Extendicare, has made an offer to acquire the Minority Common Shares of Crown Life for a price of $123 per common share pursuant to an insider offer which is open for deposit of common shares until November 20. Bidco has agreed to deposit to the issuer bid any common shares acquired under the insider offer. Crown Life says the issuer bid and insider offer provide common shareholders with two different tax treatments on the disposal of their common Shares.

At their meeting on November 9, the company’s directors declared a regular quarterly dividend of 62.5¢ a share payable on the Class I Preferred Shares.
-IE Staff