The Wawanesa Mutual Insurance Company, announced April 3 that it has formally closed on its deal to sell the Wawanesa General Insurance Company, serving California and Oregon, to the Automobile Club of Southern California. The mutual company says the move will allow it to focus its efforts on expanding business in Canada.
Wawanesa had over $4-billion in annual revenues and assets of nearly $12-billion in August 2023 when the deal was announced. ($4-billion in annual revenues represents 4.7 per cent of the Canadian property and casualty insurance market, according to the Insurance Journal’s November 2023 analysis, The musical chairs game persists.) According to the company’s most recent release, as of April 3, 2024, this had declined to just over $3.5-billion in annual revenue and assets of $10-billion.
Wawanesa Mutual, headquartered in Winnipeg, Manitoba, is the parent company of Wawanesa Life, which provides life insurance products and services throughout Canada, and Western Financial Group which distributes personal and business insurance across the country, as well. Today the company says it serves more than 1.7-million members, up from 1.6 million in August 2023.
Financial terms of the transaction with the auto club were not disclosed. The Automobile Club of Southern California is the largest member of the AAA federation of motor clubs. The deal formally closed on March 31.
“It’s the right time to focus our efforts on our home market in Canada, where we have operated for nearly 127 years,” says Jeff Goy, president and CEO of the mutual insurer. (The company was founded in 1896.) “We look forward to strengthening the products and services we provide to Canadian families and businesses.”