Wawanesa to sell U.S. subsidiary, focus on Canadian market
Wawanesa Mutual Insurance Company will sell its U.S. subsidiary to the Automobile Club of Southern California’s affiliated insurer as it focuses its efforts on the Canadian insurance market.
Wawanesa Mutual announced Tuesday it has entered into a definitive agreement to sell Wawanesa General Insurance Company to the Automobile Club of Southern California’s affiliated insurer, subject to regulatory approval and other customary closing conditions.
As a direct-to-consumer insurer, Wawanesa General offers property and casualty insurance in California and Oregon.
The Auto Club is the Southern Californian — and largest — affiliate of the American Automobile Association federation of motor clubs. Headquartered in Los Angeles, the Auto Club has been around since 1900, offering members insurance products and services, roadside assistance, trip planning services and traffic safety programs, among others.
“It’s the right time to focus our efforts on our home market in Canada, where we have operated for nearly 127 years,” Wawanesa Mutual president and CEO Jeff Goy said in a release. “We look forward to further strengthening the products and services we provide Canadian families and businesses, and to providing exceptional service to even more members across Canada.”
The financial terms of the transaction have not been disclosed.
Goy said Wawanesa and the Auto Club have a lot in common, “sharing the same commitment to great service for our members and community well-being.”
Auto Club president and CEO John Boyle agreed, saying the “acquisition presents a unique opportunity… to acquire a longstanding California-based insurance company that shares the Auto Club’s member-centric culture and focus on superior member satisfaction and competitive prices.”
Founded in 1896, Wawanesa Mutual is one of Canada’s largest mutual insurers, and the fifth largest private P&C carrier, according to MSA Research stats published in Canadian Underwriter’s 2023 Stats Guide. It had more than $3.8 billion in net premiums written and 5.66% of the market share in Canada in 2022.
With executive offices in Winnipeg, Wawanesa Mutual is the parent company of Wawanesa General, Wawanesa Life (which provides life insurance products and services throughout Canada) and Western Financial Group, an Alberta-headquartered brokerage offering personal and business insurance across Canada. In Canada, Wawanesa provides insurance through a network of more than 1,900 brokers.
Feature image by iStock.com/ssuni
