Class Notes (835,518)
Canada (509,217)
York University (35,236)
ADMS 1010 (246)

Confederation Life Insurance.doc

2 Pages
Unlock Document

Administrative Studies
ADMS 1010
Rebecca Jubis

Confederation Life Insurance (Found by John A Macdonald) • It was a top ranked insurance company in Canada, since its aggressive expansion in worldwide. • Government of Canada passed legislation by permitting mutualization of any life insurance company. (i.e., the acquisition of the company from the shareholders by the policyholders.) • Took over by J. Craig Davidson then changed to Pat Burns. Hired Bill Douglas to in charge of corporate development. • Burns challenged the management and he said the business must develop into a well-rounded financial service firm. • He launched a new strategy by buying a trust company, turning it into a bank, and then folding the bank back into the insurance company. • Consumer demand for a high interest on guaranteed income certificates. In order to gain sufficient fund, Confed. start invest money into real estate. • Canadian securities dealer and brokerage houses were opened up to anyone. The banks were the biggest buyers. • The bank began buying insurance companies, but was restricted from competing with the life insurance companies. • Confed. continued its expansion by investing money on brokerage, acquired more capital of purchasing buildings and shopping malls and develop new product such as annuities. Staff↑, expand office locations. Issues: • Office of the Superintendent of Financial Institutions (OSFI) - appointed by Michael Mackenzie to keep an eye to all the financial sectors. • The regulators found that Confed. Life real estate exposure had reached 73.8% of assets. Far more than others. • Confed. Trust continued to lend money to itself and provide loan with borrower in which the law states that no one company should account for more than 1% of loans. But no one listen to the problem. • Recession occurred. Unemployment↑, mortgage holders miss
More Less

Related notes for ADMS 1010

Log In


Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.