Canadian Underwriter

Gerling Canada to be sold

May 5, 2003   by Canadian Underwriter

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Rating agency A.M. Best has placed under review the financial strength rating of Gerling Canada Insurance Company (rated A-, excellent). The review follows news that the company’s German parent, Gerling Konzern Allgemeine, will sell the operation to a group of Canadian investors.
“The current under review status reflects the pending sale of Gerling Canada to a group of Canadian financial and other private equity investors,” states an A.M. Best release. “The transaction is organized through Newport Partners, a Toronto based investment company.”
Once complete, A.M. Best says the uncertainty about the company’s future should be resolved.
The ultimate parent, Gerling Konzern Beteiligungs-AG has been under pressure, having sold its reinsurance operations to a run-off company, and in the process of selling off its primary operations piecemeal.
A.M. Best says it is in discussions with the buyers of Gerling Canada, and will assign the company a stand-alone rating once the sale is complete.

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