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In a bid to add insurance services to its diverse portfolio of businesses, Alberta-based private equity firm Western Investment Company of Canada (Western) has announced its intent to acquire a stake in a property and casualty (P&C) insurance company in western Canada.
Western intends to acquire a 50% interest in the P&C company in a deal worth approximately $2 million. In a statement, Western outlined plans to partner with several insurance brokers in Western Canada, identify new insurance product niches, and participate in current insurance programs.
“We at Western have been clear in our intention to enter the insurance sector in western Canada,” said Scott Tannas, president and CEO at Western.
“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.”
The transaction is subject to approval by Western’s board, TSX Venture Exchange, and the Alberta Superintendent of Insurance. If approved, the deal is expected to close by April.
