Economical Mutual Insurance Company, a Canadian property and casualty insurance company, will acquire Desjardins Group's pet insurance business, Western Financial Insurance Company (“WFIC”), and its brand, Petsecure.
WFIC offers coverage for dogs and cats.
“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, the 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 its property and casualty insurance operations. “We believe WFIC and its employees will have a promising future under new ownership that will further develop the full potential of the business.”
The companies said that 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. Desjardins will continue to distribute WFIC's pet insurance product through its Desjardins Insurance and The Personal Insurance brands.
Victoria Spears
Victoria Prussen Spears is senior vice president of Meyerowitz Communications Inc., a law firm marketing communications consulting company. A graduate of Sarah Lawrence College and Brooklyn Law School, Ms. Spears was an attorney at a leading New York City law firm before joining Meyerowitz Communications. She may be contacted at [email protected].