July 21, 2009 by Canadian Underwriter
Vancity, Canada’s largest credit union, has agreed to sell Vancity Insurance Services Limited (VISL) — its subsidiary for home, auto, travel and business insurance — to The Co-operators.
The price tag of the deal, which is subject to regulatory approvals, was undisclosed.
VISL is a wholly owned subsidiary of Vancity that provides insurance through 17 retail branches in Greater Vancouver and Victoria, as well as an inbound call centre.
The VISL portfolio includes approximately 28,000 residential, 48,000 auto, 10,000 travel and 2,000 commercial insurance policies.
Under the terms of the agreement, The Co-operators subsidiary, Federated Agencies Limited, will acquire VISL, including all its service locations on
Sept. 1, 2009.
VISL customers will be notified of the change in ownership, and their insurance coverage will remain in effect with no changes to their premiums or coverage for the current term of their policies.
VISL retail locations will begin to operate under The Co-operators brand Sept. 2.
Vancity’s approximately 100 insurance staff will receive offers of employment from Federated Agencies Limited, a subsidiary of The Co-operators.
The purchase of VISL will expand The Co-operators presence in British Columbia, where it currently has 24 agent offices.
Squamish Insurance Services is not part of the purchase agreement and will continue operations as usual.