Co-operators buys Atlantic company

Co-operators subsidiary Canadian Union has bought Newfoundland insurer Colonial Fire and General to strengthen the group’s Atlantic broker presence.

Key to the deal is a firm relationship with Wedgwood Insurance Ltd., the brokerage which created Colonial, says Katherine Bardswick, chief operating officer for Canadian Union and sister company Sovereign General. Wedgewood’s portfolio is direct, and “very profitable”, she notes. Producing $9 million in annual premiums, Colonial will cease to exist as a separate legal entity. However, it will continue to operate independently under its own name in order to capitalize on regional marketing. The sale is good news for Wedgewood, comments executive vice president, Geoff Wedgwood. The Co-operators’ subsidiaries share a similar vision in terms of selling multiple personal lines products to high-end clients, he notes.

The sale also represented a chance for Colonial founder, Godfrey Wedgwood, to divest from the company while remaining involved in the core brokerage business. Wedgwood plans to use assets from the sale to expand its reach in Newfoundland and throughout the Atlantic region, says the younger Wedgwood. “To compete effectively, we’ve got to get significant critical mass, and this is one way to get it.”