HARTFORD, Conn., April 19, 1999 — Aetna
International, Inc., the international subsidiary of Aetna (NYSE: ΑET) has agreed to sell
its Canadian operations to The Maritime Life Assurance Company for approximately US$300
million in cash under a definitive agreement announced today. The sale of Aetna
Canada includes the company’s three business units: Individual Insurance Division;
Employee Benefit Services and Equinox Financial Group Inc. The transaction is subject to
regulatory approvals and other customary conditions and is expected to close in the Fall
of this year. The capital gain or loss on the transaction is not expected to be material
to Aetna. "The sale of Aetna
International’s Canadian-based business is consistent with our strategy of focusing
our business on the high-growth potential of the world’s emerging markets," said
Aetna International President and CEO Frederick C. Copeland, Jr. "Emerging markets
have economic and demographic profiles that make them attractive business opportunities
for us, and we expect to continue to focus on these markets to grow our international
business."
"Aetna and Maritime Life plan to work
together to make this a very smooth transition for our customers, agents and
employees," said Copeland. "The quality of our Canadian business and its
employees was especially attractive to Maritime Life, and we are pleased that they plan to
maintain a strong presence in Toronto where our Canadian operations are based."
Maritime Life, based in Halifax, Nova Scotia,
operates as an independent company of The John Hancock Company, a mutual life insurance
company which has its headquarters in Boston, Massachusetts. With the purchase of Aetna
Canada, Maritime Life is expected to become the seventh largest life insurer in Canada.
Aetna International is a leading provider of life
and health insurance, financial services and pension products in emerging markets,
primarily in Latin America and the Asia Pacific region. Aetna International is a
subsidiary of Aetna, which provides nearly 35 million people worldwide with quality
products, services and information that help them manage what matters most: their health
and financial well-being.
