Insurance group General Accident has announced a £266m acquisition in Canada, taking over the country’s eleventh largest property and casualty insurer.
GA is buying Canadian General Insurance Group in a move that will cement GA’s position as the largest property and casualty insurance company in Canada.
The new acquisition will be merged into General Accident Holdings Canada and will bring estimated cost savings of about £33m a year. Merging the new business into the group will cost £20m.
GA chief executive Bob Scott said: “The acquisition of Canadian Generalplaces our Canadian business on a new competitive plain. We are confident that this transaction will sustain market leadership inCanada in our preferred segments, generate considerable cost savings and be value enhancing for General Accident shareholders.”
Canadian General is based in Toronto and employs 800 people and in the half year to July made a profit of around £15m.
PA News 21/10/97
