Financial services group
Desjardins plans to sell brokerage Western Financial six years after it had acquired the business, sources close to the matter say.
The asset includes the Western Canada brokerage and a life insurance unit worth approximately $500 million, three anonymous sources told
Reuters over the past week. The sources also confirmed that
Intact Financial Corp,
Aviva, and US insurer
Travelers also had their eyes on Western Financial.
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The sources explained that Western Financial’s potential buyers could be looking to strengthen their distribution networks. They also added that pure-play brokerages could also take interest in the deal while the buyer of the brokerage could expand into the life insurance business.
When approached regarding the sale, Desjardins on Friday said that it does not comment on rumors. The three other insurance companies rumored to be interested in Western Financial also did not offer any responses on the matter.
In 2011, Desjardins purchased Western Financial Group for $443 million; the latter was a publicly listed company for 15 years until the acquisition.
Earlier this month, Economical Mutual Insurance Co bought Desjardins’ pet insurance unit, Western Financial Insurance Company (WFIC), as well as the brand Petsecure. As part of the acquisition, WFIC changed its name to Petline Insurance Company.
Since purchasing State Farm Canada’s P&C and life insurance businesses in 2015, Desjardins has become one of the biggest insurance companies in both sectors.
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