RBC Insurance has announced an agreement to acquire certain assets of Generali Group, the Trieste, Italy-based insurer, for approximately US$220 million.

These assets comprise the operations of Business Men’s Assurance Company of America and include an inforce block of approximately 150,000 traditional life insurance policies and annuities as well as the infrastructure for manufacturing variable insurance products. In a related transaction, BMA’s mutual fund company, Jones & Babson Inc., with US$1.5 billion in assets under management, is to be acquired by RBC Dain Rauscher. Generali will retain its existing reinsurance business and related infrastructure and remain in Kansas City.

The transaction, which is subject to approvals by regulators in Canada and the United States and by the boards of directors and shareholders of the mutual funds, is expected to close by the end of August 2002. The transaction generates positive earnings for RBC in the first year. It is neutral to cash earnings per share in the first twelve months and is accretive thereafter.

“This purchase reflects our strategy to build a North American financial services platform through disciplined and targeted acquisitions,” said Jim Westlake, chairman and CEO of RBC Insurance. “Adding these assets to our U.S. operations will also provide further cross-selling opportunities across RBC Financial Group and add scale to our insurance administration operations.”