Toronto, November 4th, 2004 – Winterthur announced today that it is selling its Canadian subsidiary L’Unique Compagnie d’Assurances Generales to La Capitale Assurances Generales Inc. The transaction price is CAD 48 million. Subject to approval by the appropriate regulators, the transaction is expected to be completed by mid-November. Following the divestiture, Winterthur’s presence in the Canadian insurance market continues via its other subsidiary The Citadel, headquartered in Toronto.
“This transaction was initiated by La Capitale earlier this year. It was ultimately agreed that this sale would be good for all parties involved. Winterthur is still strongly committed to the Canadian and Quebec market”, declared John Pollock, President and CEO of Winterthur North America.
L’Unique Compagnie d’Assurances Generales, based in Quebec City, is a non-life insurance company which writes chiefly personal lines business in Quebec. Approximately 70 % of its gross premium volume is driven by automobile insurance. The remaining 30 % is generated by personal property insurance. The company was acquired by Winterthur in 1996.
After completion of the transaction, Winterthur will remain fully active in the Canadian non-life insurance market through its subsidiary, The Citadel.
“As many know, Winterthur has a strong focus on mid-market commercial lines in Canada. So for us at The Citadel, it is business as usual. We will continue to write the same lines of business that we do today and strive to bolster our position throughout the country, which includes the province of Quebec, a key strategic market for us”, said Bill Breckles, President and CEO of The Citadel.