Insurance Company in Toronto has signed a binding letter of intent with the Maritime Life Assurance Company to acquire the insurer's Canadian individual life and health insurance business, according to Bloomberg News Service.

Confederation Life has a Bermuda subsidiary and last August a petition for its winding up was accepted by the Bermuda Supreme Court.

But in Toronto, Confederation's agent is Peat Marwick Thorne Inc., whose president, Mr. Bob Sanderson said: "Maritime Life was selected because their proposal provides the best overall value to all Confederation Life policyholders.

"A number of proposals were considered in detail and those received from the finalist companies all demonstrated a high level of appreciation of this goal.'' Canada's fourth largest insurer six months ago was seized by Canadian regulators after a Cdn$600 million bail out by a group of Canadian insurers fell through. It was being hailed as one of the biggest insurance failures in North America.

Here at home, Registrar of Companies, Mr. Malcolm Butterfield, is acting as provisional liquidator for the local office that wrote policies for South American clients. Chartered Accountant, Mr. David Lines, was the principle representative.

Mr. Sanderson said, "The assumption of this business by Maritime Life will provide policyholders with new certainty and the backing of a financially secure insurer.'' Maritime Life intends to offer full-time and contract employment to approximately two thirds of the em ployees involved in the individual insurance business.

The transaction is expected to be finalised before mid-year and is subject to court and regulatory approval.