The Co-operators announced March 15 that it will acquire Central 1 Credit Union’s ownership interest in The CUMIS Group. The companies have shared ownership of CUMIS since 2009.
The transaction is expected to close March 31. Following the transaction, CUMIS General Insurance Company and CUMIS Life Insurance Company will become fully-owned subsidiaries of The Co-operators. The Co-operators says it will retain the CUMIS brand in the credit union marketplace.
"This change simplifies our structure and operations," says Rob Wesseling, president and CEO, The Co-operators. "We continue to enjoy a strong relationship with Central 1 through our shared interest in Aviso Wealth, and mutual commitment to credit unions."
New strategic plan
"As Central 1 launches its new strategic plan, it's critical that we concentrate our efforts on products and services where our expertise is best leveraged," says Mark Blucher, CEO of Central 1. "This shift allows us to focus our attention and resources on banking and payments solutions that provide the greatest value to our clients and their customers."
"The Co-operators has recognized the strength and significance of the CUMIS brand for many years; it was part of the reason we sought to acquire CUMIS almost a decade ago," adds Wesseling. "We remain deeply invested in the success of credit unions, and our products and services will continue to evolve to meet their needs."