Everest Group, a global specialty insurer and reinsurer, has signed a definitive agreement to sell its Canadian Retail Insurance operations, Everest Insurance Company of Canada (Everest Canada), to The Wawanesa Mutual Insurance Company, a Canadian mutual insurer.
The transaction is anticipated to close in the second half of 2026, subject to customary regulatory approvals and closing conditions.
Jim Williamson, President and Chief Executive Officer of Everest, stated: “This transaction represents a strong outcome for both organizations, our shareholders and our colleagues. The Canadian Retail team has built a high-quality, disciplined portfolio.
“This agreement enables us to realize compelling value and to transition our colleagues to a growth-oriented organization committed to expanding its commercial retail presence in the Canadian market.”
This transaction marks another move in Everest’s strategic repositioning and advances the carrier’s previously announced plan to exit the Commercial Retail Insurance space, following the 2025 sale of its global Retail Commercial Insurance renewal rights to AIG.
As Everest Canada was the firm’s largest remaining retail platform, its divestiture allows Everest to further sharpen its focus on its core Reinsurance, Global Wholesale, and Specialty Insurance businesses.
Williamson added: “Consistent execution against our stated strategy remains a priority. This agreement further aligns our portfolio with our core underwriting strengths and supports our objective of generating sustainable, risk-adjusted returns over time.”
“Everest has built a respected commercial business in Canada, powered by strong talent, deep specialty lines expertise, and a disciplined, entrepreneurial underwriting culture,” said Evan Johnston, President and Chief Executive Officer of Wawanesa. “We look forward to welcoming the Everest Canada team and investing in their proven model to further expand our ability to serve more Canadian businesses across an even broader range of industries.”
For Wawanesa, the deal is expected to “significantly strengthen” its role in the Canadian market by adding an extensive portfolio of specialty commercial insurance products. In fact, the firm expects the transaction to add some $305 million in annual commercial lines premiums, an increase of roughly 30% from the insurer’s current volume.
Further, once the acquisition completes, Everest Canada will enter into a Loss Portfolio Transfer reinsurance agreement with Everest Reinsurance Company. Under the LPT, exposure to all liabilities of Everest Canada with respect to insurance policies issued by Everest Canada prior to closing of the transaction will be retained by Everest, while Everest Canada will continue to administer claims with respect to these policies on behalf of Everest.
Additionally, Everest Canada and Everest will enter into a Transition Services Agreement, under which an Everest affiliate will provide certain transition services to Everest Canada for a period of time following closing of the deal.
Johnston added: “Wawanesa has bold ambitions for the future and a firm commitment to growing our commercial presence across Canada. The talent and expertise gained through this deal creates the momentum we need to serve more Canadian businesses across an even broader range of industries. This is a powerful strategic fit for our organization, significantly elevating our competitive edge and better positioning us to thrive in a rapidly evolving market.”
