Western Investment Co of Canada has agreed to acquire a 50 percent interest in an undisclosed property and casualty (P&C) insurance provider based in Western Canada.
Western, a Canadian private equity firm, agreed to pay about $2 million or 90 percent of book value as of the closing, which is expected to occur in April 2019.
Western President and CEO Scott Tannas said the deal will mark the investor’s entry into Western Canada’s insurance industry.
The insurance company’s growth plan will include partnerships with a number of brokers in the region to identify new product niches and participate in existing programs.
Western Investment Company of Canada Enters the Property and Casualty Insurance Industry in Western Canada
High River, Alberta–(Newsfile Corp. – December 18, 2018) – The Western Investment Company of Canada Limited (“Western”) (TSXV: WI) announced today it has entered into a letter of intent to acquire a fifty percent interest in a Western Canadian based property and casualty insurance company for approximately $2 million or 90% of book value as of the closing date.
“Western’s CEO Scott Tannas has an exemplary track record in Western Canada’s P&C business,” said board chair Jim Dinning. “So, it’s appropriate that Western will lead the development and execution of a plan to expand the insurers’ operations significantly in 2019 and 2020,” Dinning concluded.
To achieve rapid growth, the new insurance company intends to partner with a number of insurance brokers in Western Canada to identify new insurance product niches and participate in current insurance programs.
The proposed transaction is subject to a number of conditions including approval by Western’s board, TSX Venture Exchange and the Alberta Superintendent of Insurance. If all conditions are removed it is expected the transaction will close by April 2019.
Scott Tannas, Western’s President and CEO said: “We at Western have been clear in our intention to enter the insurance sector in western Canada. In fact, it was an important component of our founding plan. We believe we have found the ideal partner and platform to launch a specialty underwriter that will blossom into a successful and profitable financial institution. Over the coming weeks we will work to finalize our plans and seek necessary approvals, and will provide additional information to stakeholders as conditions to the transaction are removed. We are excited for what 2019 has in store for our small, profitable and growing company.”
Western is a unique publicly traded, private equity company founded by a group of successful Western Canadian businesspeople, and dedicated to building and maintaining ownership in successful Western Canadian companies, and helping them to grow. The company’s shares are traded on the TSX Venture Exchange under the symbol WI. For more information on the company, please visit its website at www.winv.ca.
The Western Investment Company of Canada Limited
President and Chief Executive Officer