Canada Life Assurance Co leaving Bermuda ? and moving all its business written on the Island to BF&M.

Canada Life, which has written mainly life insurance and group pensions markets for local companies, does not have an office or staff in Bermuda, but instead conducted all its business through Kitson as a third party, the company said last night.

The company said in a joint statement with BF&M that it was leaving the Bermuda pensions and life market to focus on its "core business".

Canada Life is exiting the group insurance market and would not renew policies beyond April 1 for life and May 1 for pensions.

But they were keen to stress that there would be a smooth transition for policyholders with a team set up to make sure that it was business as usual for their customers.

"Canada Life firmly believes that the relationship with BF&M will benefit Canada Life policy holders through the provision of a broader and complimentary range of group insurance products and services," said Dale Kraus, vice president, operations, international and reinsurance division of Canada Life in a written statement.

Canada Life acquired its Bermuda operation when it bought Crown Life in 1999. Crown Life had been represented in Bermuda through a third party agreement which had been in place since at least the 1940s, the company said.

When asked what its core businesses were, a spokesperson said: "As a subsidiary of The Great-West Life Assurance, Canada Life's international operations provide a strong platform for growth in individual and group businesses in the UK, Isle of Man, Republic of Ireland and Germany."

And when asked how much business had been transferred to BF&M, the spokesperson said: "Those details have not been made public."

And in response to the question if there would be any jobs lost because of the move the company said: "Because there was no Canada Life office, those questions have to be answered by Kitson, with whom we have had the third party arrangement."

By the time the answers to the questions posed to Canada Life were received by The Royal Gazette last night, the offices of Kitson were closed.

"The company has conducted a strategic review and decided to focus on its core business," said Mr. Kraus in the written statement.

He added the company was handing over its book of business to BF&M ? and heaped praise on the company stating that they would serve policy holders well.

And Mr. Kraus added that the company believed that the interests of their group policyholders will be "well served" by a local insurer that has experience in the group insurance business and "thorough" knowledge of the local business environment.

"BF&M is a leading group insurer in Bermuda and its size will bring distinct advantages to our policyholders," added Mr. Kraus.

He said that the company believed that BF&M had the necessary infrastructure in place combined with both local and overseas claims management and a highly dedicated team of specialists in this field to serve policy holders well.

Glenn Titterton, president and chief executive officer of BF&M, said that in order for a smooth transition for Canada Life's policy holders, there would be a transition team at BF&M set up to provide data for underwriting policies.

"This will ensure minimum disruption in product scope although BF&M will ensure Canada Life policyholders are offered the latest and most advanced products for consideration now or at future renewal."

The statement issued by the companies said that BF&M had agreed to represent Canada Life in Bermuda through a third party agreement from May 1 this year "or sooner".

The same release said that BF&M will "administer" all other Canada Life business before or on May 1.

Mr. Titterton said: "We have a strong team who are capable of providing the very best service to Canada Life pensions and individual life policyholders in Bermuda and we look forward to a seamless transition.

"We have already had the opportunity to discuss this change with most Canada Life group policyholders and the change has been well received."

He added: "Canada Life has served Bermuda well for many years."