Co-operators secures Quebec stake

The Co-operators group has expanded into the Quebec market by acquiring a broker-based underwriter, L’Union Canadienne compagnie d’ assurances from Unindal Inc. The deal, which is subject to regulatory approval, will boost the group’s premium income by about $100 million (equal to 7% of The Co-operators group’s 1998 consolidated premium income).

L’Union Canadienne ranks ninth position in Quebec based on premium volume. It also the 33rd largest insurer in Canada. Commenting on the deal, Terry Squire, president of Co-operators, regards the deal as a partnership: “This transaction constitutes a perfect fit for all the parties involved. It marks the creation of a truly national network for The Co-operators, and the bringing together of two companies who share a commitment to excellent service and community involvement.”

Squire says the deal will not impact on existing relations between L’Union Canadienne and its brokers. “Quebec brokers and customers of Union Canadienne will see no change in those relationships, and we are confident today’s announcement will ensure that in the longer term they will be enhanced.”

The acquisition was structured through Co-operators General in Guelph and Calgary-based affiliate, The Sovereign General Insurance Co. Katherine Bardswick, COO of The Sovereign, says L’Union Canadienne will adopt the other company’s expertise in commercial lines for expansion across Quebec. “We intend to strengthen those relationships and utilize Union Canadienne’s personal lines expertise across the country, while also extending the commercial lines expertise of The Sovereign General across Quebec.”