Coast Capital Savings CU to Sell Insurance Subsidiary
With the decision to focus its resources on core banking services, Coast Capital Savings Credit Union said it has reached an agreement to sell its insurance subsidiary to Western Financial Group.
The $14.6 billion British Columbia credit union said it will sell its Coast Capital Insurance Services Ltd to Western, which has more than 120 offices and approximately 1,600 employees and is a subsidiary of Desjardins Group, Canada’s largest cooperative.
The deal is expected to close in July.
CCIS is a subsidiary of Coast Capital and currently offers property, casualty, commercial, life and disability insurance products through 32 retail insurance offices and a call center. The life and disability insurance business of CCIS will remain with Coast Capital, according to the credit union.
Under the terms of the agreement between Western and Coast Capital, CCIS branches will continue to operate under the CCIS name and branding for at least two years, according to both entities.
Western said it will continue to employ all of CCIS's 242 staff members while working with Coast Capital to enhance banking and insurance offerings to both Western and CCIS customers.
Coast Capital said Western is the largest and fastest growing insurance brokerage in Western Canada. The purchase of CCIS locations across the Lower Mainland and southern Vancouver Island will complement the 29 branches in 22 communities they currently operate throughout British Columbia, the credit union said.
“At Coast Capital we're proud of all that our insurance subsidiary and its employees have accomplished. When we decided to concentrate our resources on our core banking business, our goal was to find a partner who could help CCIS grow further and reach its full potential,” said Tracy Redies, CEO of Coast Capital.
Redies said the credit union valued Western’s strong entrepreneurial spirit and customer service focus, which will help build CCIS’ business.
“Most importantly though, this allows more banking and insurance services to be offered to our collective customers as we look for more opportunities to expand our businesses and serve customers in our markets,” Redies said.
Scott Tannas, president/CEO of Western, said the sale of CCIS is the company’s largest deal to date and will help solidify its presence throughout the British Columbia market.
“We look forward to building on the traditions of great service and community support that Coast Capital has established,” Tannas said.