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Royal Bank of Canada To Acquire American Guaranty &
Trust
Deal Creates New Domestic U.S. Trust Capability for RBC
TORONTO and MONTPELIER, VT., September 06, 2006
- Royal Bank of Canada (RY on TSX and NYSE) and the National
Life Group today announced that Royal Bank of Canada (RBC)
will acquire American Guaranty & Trust (AG&T), a member
of the National Life Group, pending regulatory approvals and
other customary conditions. The terms of the transaction were
not disclosed.
“The acquisition of AG&T allows RBC to provide
U.S. trust solutions to high net worth clients, complementing
our well-established international trust capability and rounding
out our wealth management offering in North America and abroad,”
said Michael Lagopoulos, President and CEO, RBC Global Private
Banking.
The acquisition, which is not material to RBC, is expected
to be completed by September 29, 2006, pending regulatory
approvals. With more than 30 employees based in Wilmington,
Delaware, AG&T currently administers more than 1,000 personal
trusts and holds more than $1.3 billion in trust and investment
accounts for its clients.
As a result of the deal, Lee Cheney, currently AG&T President
and CEO, will become the head of RBC’s U.S. trust business,
reporting to Michael Moodie, Vice President and Head of the
USA and Caribbean region of RBC Global Private Banking.
“This acquisition builds on our growing presence in
key U.S. markets and allows RBC to better deliver domestic,
international or integrated planning solutions to our clients
depending on what's best for their needs,” Moodie said.
"We are very pleased with the prospects of this change
and look forward to continuing our record of superb trust
services to our clientele," Cheney said. "We also
believe that RBC presents us with exceptional growth opportunities."
The acquisition extends RBC Financial Group's growing U.S.
financial services platform. “This deal demonstrates
RBC’s commitment to expanding in global high growth
businesses where we have significant competitive advantages.
It also reinforces RBC’s commitment to strategically
expand its businesses in the U.S.,” added Lagopoulos.
“We have been proud of our association with American
Guaranty & Trust over the past decade and are pleased
that our advisors and agents will continue to have access
to their well established and highly respected trust capabilities,"
said Mehran Assadi, Executive Vice-President of National Life
Insurance Company. “But we have concluded that our own
interests - and those of our clients - are best served by
focusing on the development, sale and service of life insurance,
annuities and mutual funds. Our success will continue to be
built around those core businesses."
In addition to Global Private Banking offices in New York,
Miami, San Francisco and Houston, RBC’s U.S. operations
include RBC Centura, a regional bank in the U.S. Southeast;
RBC Dain Rauscher, a full-service securities firm; RBC Insurance,
a national provider of insurance protection and asset accumulation
solutions; RBC Capital Markets, with corporate and investment
banking operations in New York, Minneapolis, San Francisco,
Houston and other select U.S. locations; and RBC Builder Finance,
a Houston-based provider of construction loans with national
reach.
About Royal Bank of Canada Global Private Banking
Global Private Banking is Royal Bank of Canada's international
wealth management operation, including private banking, trust
services, discretionary investment management, global custody
and international full-service brokerage. Royal Bank of Canada
Global Private Banking locations are selected for the flexibility
and security they provide our clients and for the integrity
of their financial and regulatory systems. With a network
of 30 offices in 21 financial centers around the world, RBC
Global Private Banking provides international financial services
for private and corporate clients resident in more than 150
countries. For more information, please visit www.rbcprivatebanking.com.
About Royal Bank of Canada
Royal Bank of Canada (TSX, NYSE: RY) uses the initials RBC
as a prefix for its businesses and operating subsidiaries,
which operate under the master brand name of RBC Financial
Group. Royal Bank of Canada is Canada's largest financial
institution as measured by market capitalization and assets,
and is one of North America's leading diversified financial
services companies. It provides personal and commercial banking,
wealth management services, insurance, corporate and investment
banking, and transaction processing services on a global basis.
The company employs approximately 70,000 people who serve
more than 14 million personal, business and public sector
clients through offices in North America and some 30 countries
around the world. For more information, please visit www.rbc.com.
About the National Life Group
The National Life Group is a growing and diversified family
of financial service companies made up of its flagship company,
National Life Insurance Company which was founded in Montpelier,
Vt. in 1850, as well as Sentinel Asset Management Inc., Equity
Services, Inc. and National Retirement Plan Advisors Inc.
all of Montpelier; and Life Insurance Company of the Southwest
of Dallas, Texas. Companies in the Group offer a comprehensive
portfolio of life insurance, annuity and equity products to
help individuals, families and businesses meet their financial
goals.
About American Guaranty & Trust
Chartered in Delaware in 1914, American Guaranty & Trust
offers complete personal trust and custody services though
a unique strategic partnership with professional advisors
across the country. For more than 90 years its focus has been
to provide clients with effective, flexible, dependable, and
fairly-priced personal trust services. AG&T is a leader
in offering Delaware Trusts, a preferred wealth-building and
preservation tool. The company’s investment services
were originally founded in Wilmington, Delaware by members
of the E.I. du Pont family.
For more information, please contact:
Media
Beja Rodeck, RBC Financial Group, 416-974-5506,
beja.rodeck@rbc.com
Brian Vachon, The National Life Group, 802-229-3882,
BVachon@nationallife.com
Investors
Dave Mun, RBC Financial Group, 416-955-7808,
dave.mun@rbc.com
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