Teachers’ Private Capital, the private investment arm of the Ontario Teachers’ Pension Plan, has agreed to purchase GCAN Insurance Company, a Canadian Property and Casualty insurer, for an undisclosed price from TORQUEST PARTNERS Inc., Newport Capital Insurance LP, CIBC Capital Partners, a division of Canadian Imperial Bank of Commerce and management.
GCAN Insurance Company, founded in 1955, focuses on commercial and industrial insurance through a network of independent brokers, underwriting $221 million in gross premiums in 2004. GCAN employs over 100 people in Toronto, Montreal, Calgary and Vancouver.
“We are very pleased by the endorsement of such an established and stable Canadian investor. Under our new ownership, it will be business as usual. There will be no change in the relationship with our existing network of independent brokers and their clients,” said Andy Henke, president and CEO of GCAN. “We will continue to work closely with the Canadian and international reinsurance markets. We appreciate the ongoing support of all partners and look forward to maintaining these important relationships.
“I would also like to announce that David Huebel will be appointed to president and CEO following my retirement from GCAN in a few weeks,” added Henke. David Huebel, currently Chief Operating Officer, is an 18 year veteran of GCAN who will continue to invest in the company along with other members of senior management. There will be no change to the underwriting philosophy or the company’s name.
“GCAN represents an exciting new opportunity for Teachers’ to invest in the insurance sector by supporting an excellent management team with an impressive track record and reputation,” said Jim Leech, Ontario Teachers’ Senior Vice-President. “We chose GCAN because it is a market leader in Canadian commercial and industrial insurance with a conservative operating philosophy and a commitment to sound underwriting practices.”
The transaction is expected to close in early October and is subject to satisfaction of certain closing conditions.