Vector eases out B.C. market

Vector Intermediaries Inc. (ASE: VTE) has entered into an agreement to sell its British Columbia operations. Regional vice president of Western Canada Rich Commerford has agreed to purchase Burnaby-based Charlton Insurance Agencies Ltd. as well as Macnaughton & Ward in Surrey and Langley, transactions that are a part of Vector’s continuing restructuring efforts and to enhance its acquisitional warchest. As part of the agreement, the two companies will establish a strategic alliance that would enable both parties to represent one another on national programs or accounts.

Gordon Campbell, president of Vector, says the company divested its B.C. interests because of the current market conditions — specifically regulated automobile rates — in the province. “The amount of premium that we generate out there from the private sector is not as high as it is from the ICBC. In order to grow today, we’ll get more leverage from expanding in other markets such as Ontario,” he says. Campbell adds Vector will maintain a close relationship with its divested operations and does not rule out a return to the British Columbia market.