Ontario Teachers’ to invest in Westland Insurance, Blackstone to exit

• Ontario Teachers’ is making the investment through BroadStreet Partners, the pension system’s financial platform for investing in insurance
• The Wubs family will retain a significant stake in Westland Insurance Group
  
• The deal will result in the exit of Blackstone Credit, which has provided $1.4 billion to Westland to support is strategic acquisitions

Westland Insurance Group, a Surrey, British Columbia-based insurance broker focused on the Canadian market, has agreed to enter an investment partnership with Ontario Teachers’ Pension Plan. No financial details of the transaction were disclosed.

Ontario Teachers’ is making the investment through BroadStreet Partners, the pension system’s Columbus, Ohio-based financial platform for investing in insurance.

Ontario Teachers’ and BroadStreet complement Westland’s existing shareholder base, which includes the founding Wubs family, who will retain a significant stake in the company. Operational control will remain with the Wubs and management following the transaction.

The deal is expected to close during Q2 2023, subject to customary closing conditions, including regulatory approvals.

“Ontario Teachers’, through its financial partnership with BroadStreet, invests in select, high performing, and entrepreneurial insurance brokers with superior management teams, which makes them a great fit for this partnership,” said Jamie Lyons, president and CEO of Westland, in a statement. “The investment is a signal of confidence in Westland’s long-term potential, growth strategy and future vision. We’d also like to thank Blackstone Credit, who will be exiting their investment in Westland, for their outstanding partnership, unwavering support, and commitment to helping us transform into Canada’s leading national broker over the last two and a half years.”

Westland’ strategic acquisitions have been backed by Blackstone Credit since January 2021. In December 2022, Blackstone provided an additional $200 million commitment, bringing its aggregate investment to date to $1.4 billion.

Ontario Teachers’, Canada’s second largest pension system, is a global investor with net assets of C$247.2 billion as of 31 December 2022. The firm is based in Toronto, with offices in Hong Kong, London, Mumbai, San Francisco and Singapore.

Evercore served as financial advisor to Westland in connection with the transaction and Stikeman Elliott served as its legal advisor. BMO Capital Markets and RBC Capital Markets served as financial advisors to BroadStreet and Ontario Teachers’ and Torys and Weil, Gotshal & Manges served as their legal advisor.