There will be significant ramifications for Bermuda policyholders as a result of the acquisition of business operations of Crown Life Insurance Co. by Canada Life Assurance Co., the Bermuda agency said yesterday.

Kitson & Co. Ltd. president, G. Kirkham Kitson, said the acquisition would mean positive developments for local policyholders.

He said, "It means good news for us and good news for our customers.'' The latest move by Canada Life, Canada's oldest life insurer, exposed its undiminished appetite for growth, and marks its ninth acquisition in four countries since 1992.

Toronto-based Canada Life, which was formed in 1847, also operates in the US, the UK and Ireland through 161 offices with more then 4,000 employees.

Regina-based Crown Life was formed in 1900 and is principally owned by HARO Financial Corporation of Regina, Saskatchewan with 64 percent of the common shares, and, Extendicare Inc. of Markham, Ontario, which owns 32 percent.

Under the banner slogan "Common Vision, Shared Strength'', the two Canadian firms announced an agreement Tuesday which has Canada Life acquiring Crown Life's individual and group insurance operations in Canada.

Canada Life also acquires Crown Life's non-Canadian reinsurance operations, as well as its international operations in Hong Kong, the Bahamas and other jurisdictions. Canada Life will also substantially reinsure and administer Crown Life's insurance business in the US.

Kitson & Co. is exclusive general agent for Crown Life in Bermuda, providing group health, life, disability and pension packages for local firms. Mr.

Kitson said yesterday, "This is a big positive for us because Canada Life will be able to offer our clients better security. Their Standard & Poor's rating is AA , which is better than Crown Life's A -- rating. "Canada Life is a much bigger and stronger company. Crown Life found it tough going, which you could see by looking at their financials. Their profit statement shows that their sales and profits have been pretty flat for quite a long time.

"It is a tough, competitive world out there. Crown really was hanging in there the best they could, but they could not grow.

"They really were forced, in a way, to look for a suitable partner to acquire their business, and there would be benefits to such a merger.

"From Canada Life's point of view, they could assimilate Crown Life's business into their administrative systems and get all of the cost savings benefit that accrue.

"From our point of view, we will be working for Canada Life, which has better security and will enable us to offer a wider range of investment options for our pension plans.

"It has improved technology systems, better sales support and is a stronger, more active player that is not cost constrained.

"Crown Life has been cost constrained and has been through a difficult time, and recapitalised itself and moved to Regina (Saskatchewan, Canada) and had done quite well. But it had come to the end of the line and needed to move on.

"For us, it means we will be working for a much stronger and healthier company, which is in a better position to help us to grow, and help us offer better benefits for our customers.'' The transaction will ultimately increase Canada Life's total assets under administration by more than C$5 billion to C$48 billion. Revenue premium will increase by nearly a billion Canadian dollars to C$6.2 billion.

The agreement will provide for an option that can be exercised later for either Canada Life, or Crown Life's principal shareholders, for Canada Life to acquire the common shares of Crown Life held by its principal shareholders.

But in the interim, Crown Life will carry on its remaining insurance business with a focus primarily on the US, and will develop its management business.

After the close of the transaction, expected in the fourth quarter, it is estimated that Crown Life's total assets under administration should fall to C$1.5 billion, compared with C$6.6 billion at December 31.

Crown Life bounced back from a bad 1993 year in which it lost C$3 million, to average about C$46 million in net profit annually in the four years through 1997 -- four of the five best years in its history.

Canada Life had a record year in 1997 with total net income rising more than 21 percent or C$47 million to C$266 million.