Wawanesa Acquires Everest Insurance Company of Canada

The Wawanesa Mutual Insurance Company entered into an agreement to acquire Everest Insurance Company of Canada, the Canadian Retail Insurance operations of Everest Group. The company said, "The acquisition will significantly strengthen Wawanesa's influence in the Canadian market. Everest Canada brings an extensive portfolio of specialty commercial insurance products, including cyber, accident and health, aviation, marine, professional liability, and property and casualty for larger businesses with unique, emerging, or complex needs. The addition of these offerings, combined with Everest Canada's established presence in key markets, will accelerate Wawanesa's diversification and growth priorities. The transaction is expected to add approximately $305M in annual commercial lines premiums - an increase of roughly 30% from Wawanesa's current volume...As a 100% Canadian-owned and operated mutual insurance company backed by more than 129 years of stability, $11.5B in assets, and a rating of A from AM Best, Wawanesa has the financial strength and long-term vision to leverage Everest Canada's proven model. Wawanesa intends to operate Everest Canada separately, retaining and supporting key personnel so they can continue leading the business, deepening relationships with broker partners, and delivering for commercial clients." To implement the transaction, Wawanesa has entered into a Purchase and Sale Agreement with a wholly owned subsidiary of Everest, under which Wawanesa will acquire all issued and outstanding shares of Everest Canada. Upon the closing of the transaction, Everest Canada will enter into a Loss Portfolio Transfer Reinsurance Agreement with Everest Reinsurance Company, a Delaware reinsurance company and subsidiary of Everest, operating through its Canadian branch. Pursuant to the LPT, exposure to all liabilities of Everest Canada with respect to insurance policies issued by Everest Canada prior to closing of the transaction will be retained by Everest. Everest Canada will continue to administer claims with respect to these policies on behalf of Everest. Everest Canada and Everest will also enter into a Transition Services Agreement, under which an Everest affiliate will provide certain transition services to Everest Canada for a period of time following closing of the transaction. The transaction is subject to customary closing conditions, including approval from the Minister of Finance and clearance under the Competition Act, and is expected to close in the fourth quarter of 2026.