(December 18 – 13:20 ET) – The Hartford Financial Services Group today announced an agreement to sell its Hartford Insurance Company of Canada subsidiary to The Economical Insurance Group of Canada. Economical will assume approximately $35 million in premiums generated by the Canadian subsidiary.

The sale, subject to regulatory review, is expected to close during the first quarter of 2001. Financial terms were not disclosed.

Under the agreement, Economical will acquire The Hartford’s Canadian-originated commercial insurance book, consisting primarily of small commercial business, as well as some affinity, mid-market, marine and surety business. The agreement does not include the Canadian operations of Hartford Life, Hart Re, Hartford Specialty, international agriculture or the commercial book of business derived from Canadian operations of U.S. customers.

The Economical Insurance Group, founded in Waterloo, Ontario in 1871, is one of the largest property and casualty insurers in Canada with $1 billion in premium volume and $2.1 billion in assets. Members of The Group are Economical Insurance Company (including the Western General Farm Division), Waterloo Insurance Company, Perth Insurance Company, The Missisquoi Insurance Company and Federation Insurance Company of Canada.
-IE Staff