Source: The Canadian Press

The parent company of Royal & Sun Alliance is expanding its presence in the Canadian commercial insurance sector through the $420-million acquisition of GCAN Insurance from the Ontario Teachers’ Pension Plan Board.

GCAN will join other members of the RSA group, which includes Royal & Sun Alliance, Quebec Assurance Company, Western Assurance Company and Roins Financial Services Ltd.

The addition of GCAN, which is subject to regulatory approval, will make RSA Canada the country’s fourth-largest general insurance company, according to Rowan Saunders, RSA Canada’s president and chief executive

The Canadian property and casualty insurance industry is “fairly mature” and RSA’s strategy is to grow partly through internal expansion and partly through acquisitions, he said.

GCAN is a pure commercial insurance company that will bring technical expertise, geographic diversification and a complementary range of products for mid- to large-sized companies, Saunders said in an interview.

For instance, it provides a specialty liability insurance to corporate officers and directors and general insurance for company-owned vehicles, primarily in the manufacturing sector.

“We’re really pleased to have GCAN,” Saunders said.

GCAN employs 148 people in four locations across Canada and generated $255 million of premiums in 2009.

RSA Canada, which is part of U.K.-based RSA Insurance Group PLC, employs about 3,400 people in this country. The group has about 21,000 employees worldwide.

GCAN has been part of the Teachers’ Private Capital portfolio since 2005.