Acquisition to bolster the R&SA intermediated business in Canada
TORONTO, Oct. 17 2007 – The Royal & SunAlliance Canada Group (R&SA), a leading property, automobile and commercial insurer, announced today that it has entered into an agreement to purchase all of the shares of Canadian Northern Shield Insurance Company (CNS) from The CUMIS Group Limited for approximately $75 million payable in cash. This acquisition will make R&SA the sixth largest P&C insurance company in Canada and the market leader in British Columbia.
The transaction is subject to regulatory approvals. R&SA Canada President & CEO Rowan Saunders describes the acquisition as an opportunity to strengthen R&SA while investing in the intermediated insurance market.
“This is a significant acquisition for R&SA and strengthens our position in British Columbia,” said Saunders. “The addition of CNS to the R&SA group of companies enables us to further diversify our business and continue to support brokers and their customers with greater capacity and global underwriting expertise. I look forward to working closely with the CNS team of employees and brokers to build the business in B.C.”
CNS is a leading intermediated insurer in British Columbia with annual premiums of approximately $164 million in 2006. The company offers a full range of products including personal property, commercial and private automobile and is represented by more than 200 brokers servicing customers across the province.
Kenn Lalonde, President & CEO, The CUMIS Group Limited commented: “The sale of Canadian Northern Shield will enable CUMIS to better fulfill its strategic mandate of serving credit unions and their members, and support the growth of the credit union system in Canada. CNS is a strong and successful company, however since its customer base extends beyond credit unions, it is not fully aligned with CUMIS’ core purpose.”
About The CUMIS Group Limited
The CUMIS Group Limited (CUMIS) markets a diverse portfolio of insurance and financial products and other services to Canadian credit unions, caisses populaires and their members. The organization helps its customers grow their businesses and strengthen their relationships with members through its line of individual life, credit and property and casualty insurance and retirement services products. Its principal companies are CUMIS Life Insurance Company and CUMIS General Insurance Company. CUMIS also has a 50 per cent interest in Credential Financial Inc.
About Royal & SunAlliance Canada
The Royal & SunAlliance Canada group includes Roins Financial Services Limited, Royal & Sun Alliance Insurance Company of Canada, Quebec Assurance Company, Johnson Inc., Western Assurance Company, Ascentus Insurance Ltd. and is part of Royal & Sun Alliance Insurance Group plc. The Royal & SunAlliance Canada group employs approximately 2,500 people and is represented by a large network of insurance brokers across the country. In 2006, the Canadian Group wrote $1.5 billion in direct premiums with assets exceeding $4.9 billion. Internationally, Royal & Sun Alliance Insurance Group plc employs about 24,000 people and transacts business in more than 130 countries with assets of approximately $40 billion. www.royalsunalliance.comTags: Acquisition, CUMIS, RSA