Economical Mutual Insurance Co., the Waterloo, Ontario-based property and casualty insurance company, announced plans to acquire Desjardins Group’s pet insurance business, Western Financial Insurance Co. (WFIC) and its flagship brand Petsecure.
WFIC is Canada’s largest pet insurance company with net written premiums in 2015 exceeding C$50 million ($38.8 million), said Economical, noting that WFIC has been providing comprehensive coverage for dogs and cats for more than 25 years.
“Economical is an insurer with significant momentum right now thanks to our dedicated people, bold strategy, and focus on growth, both organically and by acquisitions,” said Karen Gavan, president and chief executive officer of Economical Insurance. “We are acquiring the market leader in the Canadian pet insurance industry, which will further diversify our business, and we are pleased to welcome WFIC management and employees to the Economical family.”
“For Desjardins, this is the result of an ongoing strategic review of our activities and, as part of this decision, it was important to identify a prospective acquirer that would be in a position to continue growing the business,” said Sylvie Paquette, Desjardins’ senior executive vice president and general manager of P&C Insurance. (Desjardins is Canada’s largest cooperative financial group, based in Montreal).
“We believe WFIC and its employees will have a promising future under new ownership that will further develop the full potential of the business,” Paquette added.
The transaction is expected to close in the third quarter of 2016 and is subject to customary closing conditions, including receipt of required regulatory approvals.
Following the closing, WFIC will remain headquartered in Winnipeg, ensuring consistency of service in maintaining its industry-leading products, sales force, customer experience and relationships with veterinarians, shelters and breeders.
Desjardins will continue to distribute WFIC’s pet insurance product through its Desjardins Insurance and The Personal Insurance brands.
Source: Economical Mutual Insurance Co.
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