CGU Group Canada Ltd. (CGU), the 100% owned subsidiary of CGU plc, has signed a definitive agreement to acquire The GAN Company of Canada Limited (GAN Canada) from the French insurer GROUPAMA for a consideration of some £56m.
CGU Group Canada Ltd. (CGU), the 100% owned subsidiary of CGU plc, has signed a definitive agreement to acquire The GAN Company of Canada Limited (GAN Canada) from the French insurer GROUPAMA for a consideration of some Ł56m.
GAN Canada is the 22nd largest property and casualty insurance group in Canada, with just over 1% of the market. It writes both commercial and personal insurance with a third of total premiums in affinity group and employers’ schemes. The company had net general insurance premiums of Ł79m.
CGU plc is already the market leader in Canadian general insurance, with an 11% market share (including Pilot Insurance Company). The acquisition will increase exposure to profitable personal lines scheme business, where CGU has a leading market position. It will also add value through the utilisation of CGU Canada’s proven underwriting and integration skills to improve the performance of GAN Canada.
GAN Canada’s net asset value is estimated to be some Ł70m, including tax loss carry forward benefits of Ł28m.
The transaction is subject to regulatory approval. It is expected to be completed by the end of 1999.
Notes to Editors
- CGU plc is Europe’s 5th largest insurance group based on worldwide sales, with total premium income and retail investment sales of some Ł18bn annually.
- CGU is the leading property and casualty insurer in Canada with net general insurance premiums of Ł792m in 1998.
- GAN Canada’s business mix is 65% personal and 35% commercial, with about a third of total premium income coming from personal lines scheme business. Distribution is through a range of tied and independent intermediaries.
All figures are converted at Ł1 = C$2.47.