Wawanesa announces sale of U.S. subsidiary
Auto club to acquire the U.S. subsidiary of Wawanesa mutual in a transaction beneficial to both insurers and their respective members
Winnipeg, MB (Aug. 1, 2023) – The Wawanesa Mutual Insurance Company (Wawanesa Mutual) is pleased to announce that it has entered into a definitive agreement to sell Wawanesa General Insurance Company (Wawanesa General), its U.S. subsidiary, to the Automobile Club of Southern California’s affiliated insurer, subject to regulatory approval and other customary closing conditions.
“It’s the right time to focus our efforts on our home market in Canada, where we have operated for nearly 127 years,” said Jeff Goy, President and CEO of the Wawanesa Mutual Insurance Company. “We look forward to further strengthening the products and services we provide Canadian families and businesses, and to providing exceptional service to even more members across Canada.”
“The acquisition presents a unique opportunity for the Auto Club to acquire a longstanding California-based insurance company that shares the Auto Club’s member-centric culture and focus on superior member satisfaction and competitive prices,” said John Boyle, President & CEO of the Auto Club. “We’re also excited about the opportunity to welcome Wawanesa General’s experienced and dedicated employees to the Auto Club family.”
A leading mutual insurer in Canada, Wawanesa’s diversified Canadian operations are strong and growing, serving more than 1.6 million members through a network of more than 1,900 brokers. Both Wawanesa Mutual and Wawanesa Life continue to maintain strong financial ratings of A (Excellent) by A.M. Best.
“Wawanesa and the Auto Club have a lot in common, sharing the same commitment to great service for our members and community wellbeing,” Goy added. “We thank everyone who has been part of building our award-winning U.S. operations – including being recognized by J.D. Power as #1 in customer service in California four years in a row. You have been an integral part of our team since 1975, and we are pleased that you will be joining another great member-focused company.”
“The Auto Club and its affiliates have been providing high quality insurance products to Californians for over a century, and we look forward to the opportunity to build on this legacy through this acquisition,” Boyle added.
The financial terms of the transaction have not been disclosed.
About The Automobile Club of Southern California
The Automobile Club of Southern California, the largest member of the AAA federation of motor clubs, has been serving Southern California since 1900. Today, the Auto Club’s members benefit by roadside assistance, insurance products and services, travel agency, financial products, automotive pricing and buying programs, automotive testing and analysis, trip planning services and traffic safety programs. Information about these products and services is available on the Auto Club’s website at www.aaa.com.
About The Wawanesa Mutual Insurance Company
The Wawanesa Mutual Insurance Company, founded in 1896, is one of Canada’s largest mutual insurers, with over $4 billion (CAD) in annual revenue and assets of nearly $12 billion (CAD). Wawanesa Mutual, with executive offices in Winnipeg, is the parent company of Wawanesa General, which offers property and casualty insurance in California and Oregon; Wawanesa Life, which provides life insurance products and services throughout Canada; and Western Financial Group, which distributes personal and business insurance across Canada. Wawanesa proudly serves more than 1.6 million members in Canada. Wawanesa actively gives back to organizations that strengthen communities where it operates. For more information, please visit www.wawanesa.com.
About The Wawanesa General Insurance Company
Wawanesa Insurance is a direct-to-consumer insurance company that provides industry-leading customer service in California and Oregon. In our commitment to being there for our members when they need us, we are likewise focused on being a positive force in our communities. For more information, please visit www.wawanesa.com.
SOURCE: Wawanesa Mutual Insurance Company