Credit union G&F Financial Group has entered into an agreement to sell its general insurance assets and Autoplan appointment to The Co-operators. British Columbia-based G&F will continue providing life, disability, critical illness, and credit insurance to members through its G&F Insurance Services subsidiary.
The deal is subject to regulatory approvals and is expected to close June 30, 2012. Financial details of the deal were not disclosed.
The acquisition, announced on May 11, will increase The Co-operators presence in British Columbia, where 45 of its 512 insurance/financial advisors in Canada are currently located.
“These two organizations share co-operative values and have deep roots in Canadian communities dating back more than 66 years, so it was a natural fit,” said Kathy Bardswick, President and CEO of The Co-operators in a statement. “We’ve been very pleased with the growth we’ve achieved in the province in recent years, and look forward to the opportunity to serve more British Columbians in the years ahead.”
G&F said the sale will help the credit union focus its energy and resources on growing membership and assets through its core business offering: full service banking and wealth management. It will also provide general insurance employees with better opportunities for career development through a strong, national organization that values the insurance expertise they bring.
“Not unlike other credit unions in our region, we recognized that a strong general insurance offering would require a significant internal investment, which would exceed the revenue we could generate from the business,” said Bill Kiss, Co-CEO of G&F. “We opted to free up capital and use it to modernize and expand our branch network instead.”
G&F general insurance staff will be offered permanent positions with The Co-operators. Affected policyholders will be notified of the change in ownership and their insurance coverage will remain intact with no changes to their premiums or coverage until renewal, at which point The Co-operators will offer similar policies.