TORONTO, Jan. 10 /CNW/ - RSA Canada, a leading property, commercial and
automobile insurer, has received the final regulatory approval to
complete its acquisition of GCAN Insurance, the second-biggest
insurance transaction of the past decade in Canada.
"We are delighted to enter the New Year having completed this key
strategic move," RSA President and CEO Rowan Saunders said. "This
acquisition instantly positions us as Canada's fourth-biggest general
insurer and one of Canada's leading Commercial insurance providers."
RSA announced in October 2010, that it had agreed to acquire GCAN, a
leading Canadian mid-market, large risks, and specialty commercial
insurer with gross written premiums in 2009 of $255 million, pending
regulatory approval. That approval has now been received.
RSA purchased GCAN Insurance Company and its parent company, Glenstone
Capital Incorporated, for $420 million from the Ontario Teachers'
Pension Plan Board. As GCAN has an estimated surplus capital of about
$110 million, the deal is immediately accretive.
"This is an exciting time for us," Mr. Saunders said, "because it
represents the union of two key players in Canadian insurance with a
combined skill set and distribution reach that creates a formidable
presence in the Canadian insurance marketplace. And it comes at a time
when these internal strengths will be necessary to compete and thrive
in Canada's changing insurance landscape."
RSA Canada includes Roins Financial Services Limited, Royal & Sun
Alliance Insurance Company of Canada, Quebec Assurance Company, Western
Assurance Company, Ascentus Insurance Ltd., Canadian Northern Shield
Insurance Company, The Johnson Corporation, Unifund Assurance Company,
Noraxis Capital Corporation and is part of RSA Insurance Group plc. RSA
Canada employs approximately 3,400 people and is represented by a large
network of brokers across the country. In 2009, the Canadian Group
wrote $1.9 billion in direct premiums with assets exceeding $5.5
billion. Internationally, RSA Insurance Group plc employs about 23,000
people and has the capability to write business in 130 countries and in
2009 its net written premiums were £6.7 billion.
RSA is a trade name of Royal & Sun Alliance Insurance Company of Canada.
GCAN Insurance Company (GCAN) is a wholly owned subsidiary of Glenstone
Capital Incorporated, a portfolio company of Teachers' Private Capital,
the private equity department of Ontario Teachers' Pension Plan Board.
GCAN is a Canadian commercial property and casualty insurer with
offices in Toronto, Montreal, Calgary, and Vancouver. Through a
national network of independent brokers, it provides a range of
Commercial insurance products including Property, Liability and Motor.
For more than 50 years, GCAN has been a trusted name in the Canadian
insurance marketplace, and has a strong reputation built on providing
flexible innovative solutions and exceptional customer service.
For further information:
Julia Oosterman - RSA
(647) 405-2744, firstname.lastname@example.org
Sarah Kennedy - RSA
(416) 366-7600 ext 2987, email@example.com