Canada Life: The Early Years

The Canada Life Assurance Company, Canada’s first life insurance company, began in 1846 in Hamilton, Ontario.

Pioneering spirit

The notion of a Canadian insurance company first occurred to founder Hugh C. Baker after an arduous experience in acquiring life insurance for himself in 1845. Although a few offices existed in Canada for British firms at that time, none were in locations convenient to Baker. Baker, a banker by trade, had recently married and wanted to ensure stability for his new family in case of any eventuality. So, he made the difficult one thousand mile round trip to New York State to visit the offices of a British firm and obtain life insurance for himself. The trip was made by horse, stagecoach and steamboat. Seeing a need for such a product in Canada, a growing colony with increasing prosperity, Hugh C. Baker decided to do something about it.

The early years

Beginning in the humble library of the Mechanics Institute rooms in Hamilton, the company grew quickly. Hugh C. Baker served as President, Actuary and General Manager of Canada Life alongside a board of directors, all volunteering their time for the first few years. The first policy issued in 1847 was for Baker, and over the course of the first year, the company grew and turned a substantial profit, an amazing result for a new company. It was not all smooth sailing, however. Government legislators had refused to allow the business to operate as a mutual company. This had not stopped the determined Baker, who instead rounded up investors who had bought shares to form the company.

While Canada had a growing population, it was spread out geographically. In 1848, Canada Life hired George Baker Jr. as a traveling agent. In addition to signing up new business, Baker Jr. also promoted the assurance business in free lectures and information published in local papers.

Adopting the Pelican

In 1849, a Provincial Charter of Incorporation was granted, in great part due to Baker Jr.’s lobbying. To commemorate the occasion, Canada Life obtained a coat of arms for the company, which included a crest depicting a pelican feeding its young, a medieval symbol of charity and devotion. Canada Life identified with the image of the pelican, and its symbol was used in virtually all of Canada Life’s logos for over 50 years. Even Canada Life’s staff newsletter during that time was entitled “The Pelican”.

New leadership

Hugh Baker worked hard in his triple role for Canada Life, and passed away at a young age in 1859. Alexander Gillespie Ramsay of Scotland moved his family from Scotland to take up the reins of Canada’s first life insurance company. Ramsay introduced new guidelines, whereby people previously unable to obtain life insurance due to their residence in dangerous or remote places could obtain policies with premiums based on their location. Ramsay also realized the importance of being a contributing partner in society and Canada Life donated large sums to relief after the 1877 fire in St. John, New Brunswick.

In 1895, the company published Canada’s first mortality tables, based on the company’s 46 year history. These tables revealed that life expectancies in Canada were similar to those in the U.S., U.K. and Germany. Previously it had been thought that Canada’s harsh climate shortened lives.

Growth in Canada

Confederation in 1867 had provided a national base for Canada Life, and business was extended into the Maritimes.

Ramsay retired in 1899 and Senator George Cox was elected to the presidency. Cox, a business man with many interests, had been a top agent in Ontario. Canada Life entered into a period of rapid expansion during the Cox years, beginning first with the movement of the head office from Hamilton to Toronto in 1900. From there, Canada Life spread across Canada, with a Calgary branch serving western and northern Canada. A branch was also established in Vancouver.

Expansion in British Isles

Although Canada Life had been conducting business in the United Kingdom and Ireland from early on (the first policy to cover a resident of the British Isles had been issued in 1848), it was in 1902 that full branches were established to better serve customers. Only 35 years after Confederation, a Canadian company had grown full circle: instead of British companies insuring Canadians, a Canadian company was operating full branches in Great Britain.

Herbert Coplin Cox followed his father into the presidency of Canada Life in 1914. Business was expanded in 1920 with the first group policy, and in 1922 with the first non-medical policy.

The Great War

World War I took the world by surprise, rapidly changing life for countless families around the world. At Canada Life, 55 staff and agents enlisted from 1914-1918. Four of them would not return. Under the direction of then president Herbert Cox, no extra fees were added to existing policies for those entering the armed services, and those without existing policies who would be serving overseas were still eligible for life insurance, with an extra premium for the nature of their dangerous job. This offer was unmatched by any other company.

Weathering the Depression

In 1928, Cox retired and Leighton McCarthy took over the reigns of the company. McCarthy continued the practice of prudent investment, and Canada Life weathered the Depression, still able to provide great service to its policyholders. The company made cash surrenders available, loans against policies, frequently worked with farmers to enable them to stay on their farms despite an inability to pay the mortgage and did not lay off any staff. McCarthy went on to serve as Canada’s first Canadian Minister (Ambassador) to the United States.

New flagship building

Due to the foresight of Canada Life’s Directors, work was also able to continue on the impressive new head office being built on University Avenue in Toronto. Construction began in 1929, and in 1931 the head office moved to the new location. Construction was completed in a record time of 18 months, and provided steady employment for many tradesmen during the first and hardest years of the Depression.

This large, stately building continues to house Canada Life offices, and in 2007 received the prestigious Historical Building of the Year Award from the Toronto Chapter of the Building and Office Managers Association (BOMA).

Weather beacon landmark

A Weather Beacon was placed atop University Avenue head office in 1951, after one of the vice presidents had seen one atop an insurance building in New York. This beacon, installed as a public service, quickly became a landmark, and continues to be a favourite source of weather information for local residents. Glancing at the beacon, it is possible to determine whether it is going to rain or snow, be clear or cloudy or if the temperature is rising or falling. At night the signals indicate the next day’s temperature.

Further developments

Growth and expansion continued as Canada Life passed its centennial in 1947. A change in government legislation in 1959 allowed Canada Life to become a mutual company, as founder Hugh Baker had originally envisioned.

A. H. Lemmon became the company’s 13th president in 1964, and he quickly embraced the changes and opportunities provided by the technological developments of the decade. He adopted automated data processing first in individual insurance, and then throughout the company. In 1970 Canada Life opened the first transatlantic link to carry computer, voice, teletype and facsimile transmissions.

International growth

1992 saw the expansion of Irish operations with the acquisition of Lloyds Abbey Life. 1994 saw the acquisition of the Canadian individual insurance operations of New York Life, and the U.K. acquisition of the individual insurance operations of Manulife Financial, further enhanced with the 1997 acquisition of MetLife (UK).

Continued prosperity

1999 saw extensive growth of Canada Life in Canada with the acquisition of Crown Life Insurance Company of Canada, and demutualization and re-entry into the stock market.

With a strong focus on providing the best possible service to its policyholders, Canada Life has continued to grow and prosper. In 2003 it became part of the Great-West Lifeco group of companies.