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Vancity to sell general insurance operation to The Co-operators ... The Canadian Press

VANCOUVER, B.C. — Vancity, Canada's largest credit union, has struck a deal to sell its Vancity Insurance Services Ltd. unit to The Co-operators for an undisclosed price.

The Vancouver-based financial company said Tuesday the subsidiary it is selling provides home, auto, travel and business insurance through 17 branches in the Vancouver area and Victoria.

The pricetag of the deal was not disclosed.

Vancity Insurance has 100 employees and holds about 28,000 residential, 48,000 auto, 10,000 travel and 2,000 commercial insurance policies.

Under terms of the agreement, a Co-operators subsidiary, Federated Agencies Ltd., will acquire the Vancity insurance business and branches Sept. 1. Vancity Insurance retail locations will begin to operate under The Co-operators brand the next day.

The deal will significantly expand The Co-operators presence in British Columbia, where the Ontario-based company has 24 agent offices.

"This acquisition fits well with our core business of insurance and supports our strategic growth strategy by expanding our presence and strengthening our agency distribution system in the province," said Kathy Bardswick, president and CEO of The Co-operators.

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