31st of May 2019 11:30
Photo : Freepik
The holding company Step Financial Holdings has announced that the sale of its subsidiary, Echelon Insurance at CAA Club Group closed. The acquisition of the canadian operations of the first has obtained yesterday the final regulatory approval required. The transaction amounted to 175 million us dollars (M$).
“We are delighted to have reached this important step in the sale of Echelon Insurance to a buyer who will support its continued growth and the employees behind this success “, said Murray Wallace, president of the board of directors of Step Financial Holdings.
Jay Woo, president and ceo of CAA Club Group, added that he was ” excited to welcome Echelon group of companies CAA Club Group “. “We look forward to the continued growth of Echelon, taking advantage of his expertise and leadeurship on the insurance market and specialized companies. We will expand and deepen our relationships with brokers a coast to coast in order to protect Canadians. “
The announcement of the transaction was made in November last, after a first buyer bowed out. The shareholders have approved in January.
Mr. Wallace had indicated that he was one of the solutions proposed by the company in the strategic review of its process. “We believe that CAA will allow Echelon to achieve a higher level of service to its brokers and customers,” he added.
A first quarter in the red
The most recent quarterly results of Step Financial Holdings are in the red. The insurer recorded a loss of nearly$ 9 Million, a fall of 259 % compared to the corresponding quarter of 2018.
Echelon explains that losses on underwriting, both in personal insurance and insurance companies, and the unusually harsh winter which has affected its combined ratio.