Royal & SunAlliance acquires Canadian Northern Shield Insurance

The Royal & SunAlliance (R&SA) Canada Group has acquired Canadian Northern Shield Insurance Company (CNS) from The CUMIS Group Limited for approximately Cdn$75 million in cash. The acquisition will make R&SA the sixth largest property and casualty insurance company in Canada and the largest in British Columbia. It marks the first acquisition in the industry in 18 months, information from R&SA says. The transaction is subject to regulatory approval. CNS is an intermediated insurer in British Columbia with annual premiums of approximately Cdn$164 million in 2006, an R&SA release says.The company offers personal property, commercial and private automobile and is represented by more than 200 brokers across B.C.This is a significant acquisition for R&SA and strengthens our position in British Columbia, Rowan Saunders, R&SA Canada president and CEO, said in a statement.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.Kenn Lalonde, president and CEO of The CUMIS Group, said in a statement that the sale of CNS was part of a strategic mandate of serving credit unions and their members. 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.