Holding company E-L Financial Corp. Ltd. is increasing its stake in its life insurance subsidiary, The Empire Life Insurance Company. In a transaction expected to close next week, E-L Financial will purchase a 19% share of E-L Financial Services Limited from U.K.-based Guardian Assurance Limited. As a result of the deal, E-L Financial will own all of E-L Financial Services Limited, which owns 98.3% of Empire Life.
“For years, Empire Life has been an important long-term investment for E-L Financial [Corp.],” says Duncan Jackman, chairman and CEO of E-L Financial Corp., through a statement released on Friday. “We are very excited about being able to increase our stake in this great company and reinforce our continued commitment to its ongoing success.”
The transaction will close next week at a purchase price of approximately book value or $200 million.
Empire Life is a major Canadian-based insurer with assets under management of $14.2 billion.