TORONTO, Oct. 3, 2005 – Teachers’ Private Capital, the private investment
arm of the Ontario Teachers’ Pension Plan, has agreed to purchase GCAN
Insurance Company, a Canadian Property and Casualty insurer, for an
undisclosed price from TORQUEST PARTNERS Inc., Newport Capital Insurance LP,
CIBC Capital Partners, a division of Canadian Imperial Bank of Commerce and
GCAN Insurance Company, founded in 1955, focuses on commercial and
industrial insurance through a network of independent brokers, underwriting
$221 million in gross premiums in 2004. GCAN employs over 100 people in
Toronto, Montreal, Calgary and Vancouver.
“We are very pleased by the endorsement of such an established and stable
Canadian investor. Under our new ownership, it will be business as usual.
There will be no change in the relationship with our existing network of
independent brokers and their clients,” said Andy Henke, President and CEO of
GCAN. “We will continue to work closely with the Canadian and international
reinsurance markets. We appreciate the ongoing support of all partners and
look forward to maintaining these important relationships.
“I would also like to announce that David Huebel will be appointed to
President and CEO following my retirement from GCAN in a few weeks,” added
Henke. David Huebel, currently Chief Operating Officer, is an 18 year veteran
of GCAN who will continue to invest in the company along with other members of
senior management. There will be no change to the underwriting philosophy or
the company’s name.
“GCAN represents an exciting new opportunity for Teachers’ to invest in
the insurance sector by supporting an excellent management team with an
impressive track record and reputation,” said Jim Leech, Ontario Teachers’
Senior Vice-President. “We chose GCAN because it is a market leader in
Canadian commercial and industrial insurance with a conservative operating
philosophy and a commitment to sound underwriting practices.”
The transaction is expected to close in early October and is subject to
satisfaction of certain closing conditions.
About Teachers’ Private Capital
Teachers’ Private Capital is the private investment arm of the
C$88 billion Ontario Teachers’ Pension Plan, which invests on behalf of
260,000 active and retired teachers in Ontario, Canada. With more than
C$7 billion in assets, Teachers’ Private Capital is one of Canada’s largest
private investors and is currently working with more than 100 companies and
funds worldwide by providing long-term flexible financing.
Significant investments in the U.S. include Samsonite, Worldspan,
Alliance Laundry Systems and the recently announced Doane Pet Care Company and
National Bedding Co. In Canada, major investments include Maple Leaf Sports
and Entertainment, Parmalat Canada, Yellow Pages, and Shoppers Drug Mart.
Teachers’ Private Capital specializes in providing private equity and
mezzanine debt capital for large and mid-cap companies, venture capital for
developing industries, and financing for a growing portfolio of infrastructure
and timberland assets.