Subsidiary of Winnipeg-based Wawanesa buys Western Financial, Western Life for $775M

A subsidiary of Wawanesa Mutual Insurance Company announced Thursday it is acquiring Western Financial Group and Western Life Assurance from Quebec-based Desjardins Group in a deal worth $775 million.

Wawanesa, originally founded in Wawanesa, Man. and headquartered in Winnipeg, has offices across Canada and the United States.

Its subsidiary Trimont Financial, a firm that specializes in succession planning and investments, is purchasing the Desjardins Group companies, collectively known as Western, according to a news release.

Western Financial Group is based in High River, Alta., while Western Life Assurance operates out of Winnipeg.

Western employs more than 1,700 employees and has 157 office locations and affiliates in B.C., Alberta, Saskatchewan, Manitoba and Quebec.

Thursday's release said there are no plans to close or relocate any of Western's existing brokerage locations.

"Wawanesa has a long history of supporting the success of insurance brokers, and this investment reflects our continued commitment to the broker channel," said Wawanesa president and CEO Jeff Goy in a news release.

"Today's announcement will ensure that Western Financial Group remains a trusted, familiar local broker in communities across western Canada."

Wawanesa reports $3 billion in annual revenues and assets of more than $9 billion, making it one of the largest property and casualty insurance companies in Canada.

The transaction, expected to close later this year, is still subject to regulatory approval.