December 12, 2002 by Canadian Underwriter
CGU Insurance Co. of Canada will be offering renewals on Royal & SunAlliance’s Quebec personal lines book, notes a joint press release from the insurers.
This will commence with April 1, 2003 renewals, as policies expire. Some of Royal’s Quebec staff will be offered positions with CGU, although no numbers were disclosed. The deal with CGU does not include products related to Royal’s national and regional group, affinity or specialty programs.
The announcement follows an earlier one that Markel would offer renewals on Royal’s long-haul trucking book. Royal is withdrawing from unprofitable lines following announcement the company’s global parent that for the first nine months of the year the company lost 156 million pounds (Cdn$388 million), and that a major restructuring would be undertaken. In Canada, this restructuring involves reducing the company’s exposure in personal lines auto and moving towards specialty lines coverage.