• Home
  • Subscribe
  • Advertising
  • Contact info
  • Industry Links
  • Company &    Ratings Search
  • Daily service
  • Email Us

    • July 20: Wawanesa buys more Western Financial Group shares ‘as support’ for the company
        (Copyright Thompson’s World Insurance News)
        Wawanesa Mutual Insurance has disclosed the purchase of almost 900,000 common shares of Western Financial Group for $2.37m.
        It was one of several buyers who participated in a private placement sale of WFG stock at $2.65 per share last month.
        Wawa vp and general counsel George Bass said the mutual announced the purchase this week to make sure it complies with securities legislation that would require it to declare acquisition of 10% of WFG.
        The purchase gives it ownership of 9.4% of WFG common shares but that could reach almost 12% if the insurer converted its preferred shares and debentures into common stock.
        Even then it would not control more than 10% unless all other holders of convertible equity opted not to do the same, said WFG president and ceo Scott Tannas.
        But both men said that’s not likely to happen.
        “It truly is just for investment purposes — it’s as a support for Western Financial Group,” Mr. Bass told Thompson’s. “We just decided to put some money in and buy some shares.”
        Historically no investor has held more than 10% of the High River, Alta.-based financial services group.
        “It’s not a policy but it’s kind of been that way,” said Mr. Tannas, noting that two mutual funds that participated in the June placement are now just over that line.
        He said the money raised by the stock sale would go toward WFG’s usual company plans, including acquisitions.
        “We don’t have any surprising plans, but you’ll see that . . . we want to grow our traditional insurance agent business.”
        Asked if the WFG Network planned to increase its presence in major cities as opposed to its traditional small-town purchases, he said: “Eventually, but we don’t have anything immediate.”
        
    		 


    Thompson’s World Insurance News
    P.O. Box 1027,  Waterloo, Ontario,  Canada  N2J 4S1
    Tel: 519-579-2500 Fax: 519-745-7321
    mpub@sympatico.ca
    THOMPSON’S WORLD INSURANCE NEWS , Canada’s only independent weekly for p&c insurance professionals, has been the industry’s most trusted news source since 1988.