London Insurance Group Inc. has closed the sale of its subsidiary, London Guarantee Insurance Company, to The St. Paul Companies of Saint Paul, Minnesota.

London Guarantee is a specialty property-liability insurance company, focused on providing surety products, and management liability, bond and professional indemnity products. St. Paul paid $125 million for the firm.

London Guarantee is based in Toronto, with branches in Vancouver and Montreal. The St. Paul’s acquisition includes surety and professional indemnity lines of business. It creates Canada’s largest surety provider and number two underwriter of corporate risk insurance.