G&F Financial Group announced Friday an agreement to sell its general insurance assets to Guelph, Ont.-based The Co-operators.
The Burnaby, B.C. based credit union will continue providing life, disability, critical illness, and credit insurance to members through its G&F Insurance Services subsidiary. The deal is subject to regulatory approvals and is expected to close June 30.
The acquisition will increase The Co-operators presence in British Columbia, where 45 of its 512 insurance/financial advisors in Canada are currently located. Over the past 15 years, The Co-operators has nearly tripled the number of retail locations it has in the province.
“These two organizations share co-operative values and have deep roots in Canadian communities dating back more than 66 years, so it was a natural fit,” said Kathy Bardswick, president and CEO of The Co-operators. “We’ve been very pleased with the growth we’ve achieved in the province in recent years, and look forward to the opportunity to serve more British Columbians in the years ahead.”
G&F is committed to expanding its network of branches throughout the Lower Mainland. The sale helps the credit union focus its energy and resources on growing membership and assets through its core business offering: full service banking and wealth management.
“Not unlike other credit unions in our region, we recognized that a strong general insurance offering would require a significant internal investment, which would exceed the revenue we could generate from the business,” says Bill Kiss, Co-CEO of G&F. “We opted to free up capital and use it to modernize and expand our branch network instead.”
G&F general insurance staff will be offered permanent positions with The Co-operators. Affected policyholders will be notified of the change in ownership and their insurance coverage will remain intact with no changes to their premiums or coverage until renewal, at which point The Co-operators will offer similar policies.