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Desjardins set to sell insurance brokerage unit Western Financial

  • Region:

    Canada

  • Sector:

    Insurance

  • Deal Size:

  • Buy Side Company:

  • Sell Side Company:

    Desjardins
  • Target Company:

    Western Financial

Canadian financial services group Desjardins is selling Western Financial, an insurance brokerage unit in Western Canada, six years after acquiring the business, according to sources quoted in media reports. The asset, which includes a brokerage and a life insurance business, could be worth about $381 million, according to the three sources quoted. Canada's property and casualty insurers have been consolidating in response to challenging market conditions due to low interest rates, volatile investment returns and sluggish economic growth. The retreat from a business focused on some of the oil-producing provinces comes after a prolonged slump in oil prices began taking a toll on financial service providers exposed to the region. Quebec-based Desjardins is the biggest customer-owned financial services group in Canada. Desjardins acquired Western Financial Group for C$443 million in 2011. Western Financial was a publicly listed company for 15 years until the acquisition.

Tags:

Canada,United States,US,DESJARDINS,DIVESTITURE,Mergers / Acquisitions / Takeovers,Company News,Exclusive,Corporate Events,Divestitures / Spin,Offs,Government Borrowing Requirement,Europe,United Kingdom,Western Financial