Transaction includes Petsecure brand
Annual net written premiums exceeded $50 million in 2015
WATERLOO, ON, May 17, 2016 /CNW/ - Economical Mutual Insurance Company, one of Canada's leading property and casualty insurance companies, today announced its intention to acquire Desjardins Group's pet insurance business, Western Financial Insurance Company (WFIC) and its flagship brand Petsecure.
WFIC is Canada's largest pet insurance company with net written premiums in 2015 exceeding $50 million. For more than 25 years, it has provided Canadian pet owners with innovative coverage to meet the diverse needs of their pets. WFIC offers comprehensive, veterinarian-recommended coverage for dogs and cats.
"Economical is an insurer with significant momentum right now thanks to our dedicated people, bold strategy, and focus on growth, both organically and by acquisitions," said Karen Gavan, president and chief executive officer of Economical Insurance. "We are acquiring the market leader in the Canadian pet insurance industry, which will further diversify our business, and we are pleased to welcome WFIC management and employees to the Economical family."
"For Desjardins, this is the result of an ongoing strategic review of our activities and, as part of this decision, it was important to identify a prospective acquirer that would be in a position to continue growing the business," said Sylvie Paquette, Desjardins' Senior Executive Vice President and General Manager of P&C Insurance. "We believe WFIC and its employees will have a promising future under new ownership that will further develop the full potential of the business."
The transaction is expected to close in the third quarter of 2016 and is subject to customary closing conditions, including receipt of required regulatory approvals. Following the closing, WFIC will remain headquartered in Winnipeg, ensuring consistency of service in maintaining its industry-leading products, sales force, customer experience and relationships with veterinarians, shelters and breeders. Desjardins will continue to distribute WFIC's pet insurance product through its Desjardins Insurance and The Personal Insurance brands.
About Economical Insurance
Founded in 1871, Economical Insurance is one of Canada's leading property and casualty insurers, with $2.0 billion in premiums during 2015 and $5.3 billion in assets as at March 31, 2016. Based in Waterloo, this Canadian-owned and operated company services the insurance needs of more than one million customers across the country. Economical Insurance conducts business under the following brands: Economical Insurance, Economical, Western General, Economical Select, Perth Insurance, Sonnet, Family Insurance Solutions and Economical Financial.
WFIC is Canada's oldest and largest pet insurance provider with 25 years of offering innovative pet insurance to Canadian pet parents. Its core brand, Petsecure has unique pet insurance options to choose from that offer comprehensive coverage to pet owners in Canada. Petsecure also offers dental coverage and special coverage including alternative treatments and behavioural therapy. Petsecure is the only pet health insurance provider in Canada to offer their exclusive Secure For Life™ guarantee. Underwritten by WFIC, Petsecure and logo are registered trademarks of WFIC. Petsecure is a member of the North American Pet Health Insurance Association (NAPHIA).
About Desjardins Group
Desjardins Group is the leading cooperative financial group in Canada and the sixth largest cooperative financial group in the world, with assets of $255.1 billion. It has been rated one of the Best Employers in Canada by Aon Hewitt. To meet the diverse needs of its members and clients, Desjardins offers a full range of products and services to individuals and businesses through its extensive distribution network, online platforms and subsidiaries across Canada. Considered North America's strongest bank according to Bloomberg News, Desjardins has one of the highest capital ratios and credit ratings in the industry.
SOURCE Economical Insurance
Image with caption: "Economical Insurance (CNW Group/Economical Insurance)". Image available at: http://photos.newswire.ca/images/download/20160517_C6359_PHOTO_EN_692934.jpg
For further information: For media queries, contact: Doug Maybee, Economical Insurance, (T) 519.570.8249, (C) 519.404.0989, [email protected]; Valérie Lamarre, Desjardins Group, (T) 514.281.7275 or 1.866.866.7000, ext. 5557275, [email protected] / [email protected]; For stakeholder relations queries, contact: Max Weis, vice president, corporate development, Economical Insurance, (T) 647.260.3679, [email protected]