Columbian Financial Group announces strategic transaction with Constellation Insurance

On June 30, 2021, Columbian Mutual Life Insurance Company ("Columbian") announced that its Board of Directors unanimously approved a strategic transaction with Constellation Insurance Holdings, Inc. ("Constellation") that includes the conversion of Columbian to a stock company and the issuance of all of its newly issued stock to Constellation pursuant to a sponsored demutualization.

The strategic transaction provides for Constellation to invest up to US$100 million to fund cash payments to eligible policyholders and to significantly strengthen capitalization and financial ratings of Columbian.

It is anticipated that the transaction will close in the first half of 2022, subject to regulatory and policyholder approvals. Following the closing of the transaction, Columbian will maintain its brand and leadership team, and the company's offices will remain in Binghamton and Syracuse.

Further information can be found on Canada Newswire’s website.

Since 1882, Columbian has provided value through quality, affordable life insurance protection. Columbian's consumer-oriented products are designed to make a positive difference in policyholder's lives by enhancing financial security when needed most. The company is licensed in all 50 states and has grown over the years through a series of strategic mergers and acquisitions. Columbian's affiliated companies have US$1.8 billion in assets and over 750,000 policyholders.

Constellation is an insurance holding company targeting acquisitions of life and P&C insurers based in North America, with the strategic intent of building a substantial, highly rated and conservatively managed multi-line insurance business backed by long-term institutional capital. Constellation's founding investors and equal partners, Caisse de dépôt et placement du Québec (“CDPQ”) and Ontario Teachers' Pension Plan Board (“Ontario Teachers'”) are two of the largest long-term institutional investors in North America, managing a combined total of over C$500 billion in net assets, including over C$80 billion in private capital investments.

Ontario Teachers' Pension Plan Board (Ontario Teachers’) is the administrator of Canada's largest single-profession pension plan, with C$204.7 billion in net assets (all figures at June 30, 2020 unless noted).  It holds a diverse global portfolio of assets, approximately 80% of which is managed in-house, and has earned an annual total-fund net return of 9.5% since the plan's founding in 1990.

Caisse de dépôt et placement du Québec (CDPQ) is a global investment group managing funds for public retirement and insurance plans that work alongside partners to build enterprises that drive performance and progress. As at December 31, 2020, CDPQ's net assets total C$365.5 billion.