December 9, 2002 by Canadian Underwriter
Broker network consolidator Vector Intermediaries Inc. (TSX: VTE) has sold its Ontario operations under Vector Insurance Network (Ontario) to the Huestis Group for $4.6 million. The deal is expected to close by the beginning of next year. Vector says the funds raised from the disposal will be used to reduce its long-term debt position. The company also notes that the sale of the Ontario operations, which follows on a similar withdrawal last year from the Atlantic provinces, will enable the network to focus its efforts in Western Canada.
Vector reported net earnings of $73,133 for the quarter ending September this year compared with a loss of $751,320 for the same period a year ago. For the full financial year to end September 2002, the company produced a profit of $1.8 million against a loss of $1.5 million from the year previous. The 2002 profit includes gains made from the sale of the Atlantic Canada operations.