Teachers’ agrees to sell GCAN Insurance to RSA Canada
TORONTO - Ontario Teachers' Pension Plan (Teachers'), through its private investment department, Teachers' Private Capital, today announced that it has entered into an agreement to sell GCAN Insurance Company to RSA Canada.
GCAN, a leading Canadian commercial property and casualty insurer, became a subsidiary of Glenstone Capital Inc., a portfolio company of Teachers' Private Capital, in 2005.
"GCAN has been a successful investment for Teachers'. The management, under the leadership of President Daniel Courtemanche, has done an excellent job of building the business, and the company is now positioned to move to the next level with the support of a strong international insurance company," said Neil Petroff, Teachers' Executive Vice President and Chief Investment Officer. "Our financial services group has had an impressive level of deal activity this year and we will continue to pursue opportunities in the sector."
The purchase price of GCAN is approximately $420 million. Closing is expected in January, subject to customary approvals.
GCAN is a leading Canadian mid-market, large risks and specialty commercial insurer, offering a range of products including property, liability and auto with a balanced portfolio by line of business and geography. GCAN has a strong track record of profitability with a combined operating ratio (COR) of 81.4% in 2009 and an average COR over the last five years of 77%. With annual premiums of approximately $255 million in 2009, the company employs 148 people in four locations across Canada, and partners with a network of 130 brokers.
About Teachers' Private Capital
Teachers' Private Capital is one of the world's largest private equity investors. It is the private investment department of the Ontario Teachers' Pension Plan. With $96.4 billion in assets as of December 31, 2009, the Ontario Teachers' Pension Plan is the largest single-profession pension plan in Canada. It is an independent corporation responsible for investing the fund and administering the pensions of Ontario's 289,000 active and retired teachers. For more information visit www.otpp.com.
Director, Communications and Media Relations
Ontario Teachers' Pension Plan