(March 2 – 12:45 ET) – Royal & Sun Alliance Insurance Co. of Canada and its affiliate, Western Assurance Co., have agreed in principle purchase the Canadian operations of the Kemper Insurance Cos.

Western Assurance will purchase the personal lines business of Kemper Canada, while Royal & Sun Alliance will purchased the commercial lines. Kemper will retain the commercial lines business related to the Canadian subsidiaries of Kemper’s U.S.- based. Kemper will also retain its Canadian-based environmental liability business.

The companies say a definitive purchase agreement will be signed within the next few days. Any agreement will be subject to customary closing conditions, including regulatory approval. The transaction is expected to close by the end of the second quarter of 2001.

Kemper says the sale will allow the company to further concentrate on its core U.S. business. Western Assurance and Royal & Sun Alliance say the investment supports their strategy of growth in Canada through the acquisition of successful companies whose business models complement their own.

“This is a great fit,” says Judy Maddocks, chief executive officer of Kemper Canada. “Kemper Canada and Western Assurance are similar in many ways, including market focus and ‘small company’ approach to building relationships with brokers.”

“This investment will grow our Canadian business, while also demonstrating our commitment to the independent broker network,” says Bob Gunn, chief executive officer of Royal & Sun Alliance Canada, and Western Assurance Co., and group director, Americas, for Royal & Sun Alliance globally. “It’s an excellent strategic fit and, together, we will build something new and exciting that will make us a leader in the Ontario insurance market.”

Larry Simmons, president and COO of Royal & Sun Alliance Insurance Co. of Canada and Western Assurance Co. says most of Kemper Canada employees will be offered positions. He says the Company currently plans to continue to operate and service the Kemper Canada business from downtown Toronto.
-IE Staff