A joint venture between two Prairie-based financial services companies could mark the beginning of a new Western Canadian insurance brokerage network with a major presence in both the rural and urban markets.
Harvard Western Ventures Inc. was formed last month by the merger of the general insurance operations of Western Financial Group of High River, Alta., and Harvard Developments Inc. of Regina.
The venture brings together ISI Agencies, part of Western Financial, and Cook’s McCallum Hill Insurance, part of Harvard Developments, under a new name, Cooks ISI Insurance .
Paul Hill, president and CEO of Harvard, says the new company is the first step in developing insurance brokerages or acquiring existing brokerages in other major Western Canadian cities.
“Our family has more than 90 years of successful history in the insurance business, and this partnership is a logical development toward meeting our growth objectives in this industry,’’ Hill says.
Western Financial brings “economies of scale and considerable experience in network operations” to the venture.
Initially, the new company will concentrate on expanding into Saskatoon, Winnipeg, Edmonton and Calgary. “The Prairie provinces are the major focus,” says Hill.
Scott Tannas, president and CEO of Western Financial, says the company was looking to expand into larger urban centres and wanted a partner with some experience in urban markets. “We have only one operation in a metropolitan market, and that’s Regina,’’ says Tannas, referring to the former ISI Insurance offices in the city. “The rest are in small cities and towns.’’
Western Financial wanted to build on its success in rural Western Canada, where it operates 54 branches in Manitoba, Saskatchewan, Alberta and British Columbia. The venture with privately owned Harvard “seemed like a good fit,’’ he says.
Generally, the targets are independent insurance brokerages with a good reputation, Hill says. “Our strategy is to find busy insurance brokerages,” adds Tannas.
Both Hill and Tannas are anxious to see the new company grow, but are prepared to wait until the right acquisitions come along.
“Western Financial Group is 100 years old,’’ Tannas says, referring to some of the businesses Western Financial has acquired. “Harvard is more than 100 years old. We’re nothing if not patient.’’
Indeed, both companies have deep roots in the Prairies.
Cook’s McCallum Hill Insurance was formed from the 1996 merger of two of Regina’s oldest companies: McCallum Hill Insurance, founded in 1903, and Cook’s Insurance, founded in 1907.
McCallum Hill, founded by Paul Hill’s grandfather, Walter, and two McCallum brothers, Edgar and Ernest, was instrumental in the development of the city of Regina, having assembled and sold the land upon which the province’s legislative buildings were built in 1912.
Western Financial, formerly Hi-Alta Capital Inc., was formed as a junior capital pool company and listed on the Alberta Stock Exchange in 1996. The same year, the company made its first acquisition, High-Alta Agencies in High River, where the company’s head office remains.
In 2001, Western Financial’s insurance division, WFG Agency Network Inc. (formerly Western Insurance Network), became the largest insurance broker network in Western Canada.
Both Hill and Tannas seem pleased with their respective partners. “Western Financial is a fine organization with excellent people,’’ says Hill. Adds Tannas: “The strength and reputation of the Hill family and the sophistication of Harvard in business fit well with our strategy.’’
Cooks ISI Insurance has three locations in Regina and one in nearby Kronau. Jeff Child, who has almost 30 years’ experience in the general insurance business, has been named general manager. “I’ll be in charge of Cooks ISI Insurance operations in the Regina area,” Child says. “This [new company] stands separate and apart from
the other ISI agencies in Western Canada.”
The new firm will also become the model for the acquisition of brokerages in Western Canada by Harvard Western Ventures, he says. IE
Insurance joint venture
sets sights on the West
- By: Bruce Johnstone
- March 30, 2005 March 30, 2005
- 13:32