Royal & SunAlliance to buy business of Morgex

Through its subsidiary, Johnson Inc., Royal & SunAlliance Canada has acquired the commercial rights to the business of Morgex Insurance Group a leading insurance broker in Alberta for C$44.7 million.
Royal & SunAlliance says the consideration, payable in cash, is for the commercial rights to the main insurance activities, non-core business and other assets of Morgex.
“Over the last five years, Johnson’s has more than doubled in size through a combination of organic growth and acquisitions while delivering strong bottom line performance,” Simon Lee, the chief executive of Royal SunAlliance’s international business section, says. “The purchase of Morgex’s business will double our market position in Alberta and further strengthen the Johnson’s franchise.”
The acquisition is subject to the government authorizations and approvals.
Morgex was established in 1986 and is a leading player in the personal and commercial market in Alberta, with offices in Edmonton, Red Deer, and Calgary. In 2004, the company’s gross written premium volumes were C$73 million for the core insurance portfolio. Morgex’s services include auto, home, commercial, travel, life, and disability insurance.
Johnson Inc. was founded in 1880 and is one of Canada’s leading insurance and benefit providers. It has more than 40 branches and 2 million customers.