May 18, 2016 by Canadian Underwriter
Economical Mutual Insurance Company has announced that it will acquire Petsecure, the largest pet insurer in Canada.
Economical announced on Wednesday its intention to acquire Desjardins Group’s pet insurance business, Western Financial Insurance Company (WFIC) and its flagship brand Petsecure. WFIC is Canada’s largest pet insurance company with net written premiums in 2015 exceeding $50 million.
For more than 25 years, WFIC has provided Canadian pet owners with innovative coverage to meet the diverse needs of their pets, offering comprehensive, veterinarian-recommended coverage for dogs and cats, Waterloo, Ont.-based Economical said in a press release.
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, Economical noted. Following the closing, WFIC will remain headquartered in Winnipeg, ensuring consistency of service in maintaining its 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.
“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, in the release. “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.”
Sylvie Paquette, Desjardins’ senior executive vice president and general manager of P&C insurance, said in the release that “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. We believe WFIC and its employees will have a promising future under new ownership that will further develop the full potential of the business.”
WFIC’s core brand, Petsecure, offers dental coverage and special coverage, including alternative treatments and behavioural therapy. Underwritten by WFIC, Petsecure is a member of the North American Pet Health Insurance Association.