Vancity sells P&C operation, keeps life unit

The Co-operators has inked a deal with Vancity to buy Vancity Insurance Services Limited (VISL), the credit union’s subsidiary for home, auto, travel and business insurance.

The acquisition will be held by The Co-operators’ Federated Agencies Limited subsidiary. The sale remains subject to regulatory approval, but is expected to close September 1, 2009.

“We will return better value for our members and communities through this sale than we would by continuing to operate the business ourselves,” said Tamara Vrooman, president and CEO of Vancity. “The proceeds will be reinvested to further enhance member service and support our employees with improved systems, processes and training at the credit union.”

Vancity will continue to offer life, creditor and title insurance as part of its overall financial services offering.

The VISL portfolio consists of approximately 28,000 residential, 48,000 auto, 10,000 travel and 2,000 commercial insurance policies. These insurance products were sold through Vancity’s 17 retail branches in Greater Vancouver and Victoria.

Under the deal, Federated Agencies will take over VISL’s service locations, and the outlets will be rebranded as The Co-operators on September 2. The Co-operators already has 24 agent offices in British Columbia.

VISL employs about 100 staff members, who will receive offers of employment from Federated Agencies.

“This was a natural fit for both our and Vancity’s employees, customers, members and stakeholders, as the two Canadian-owned co-operatives have closely aligned values, cultures and commitment to communities,” said Kathy Bardswick, president and CEO of The Co-operators.

The change in ownership will be seamless for policyholders.

Vancity is Canada’s largest credit union, with over 400,000 members, $14.5 billion in assets and 60 branches throughout Greater Vancouver, the Fraser Valley, Victoria and Squamish.

The deal does not include Squamish Insurance Services, which will continue operations as usual.

(07/21/09)