Everest to sell Canadian unit to Wawanesa

Everest Group, Ltd. has signed a definitive agreement to sell its Canadian retail insurance operations, Everest Insurance Company of Canada, to The Wawanesa Mutual Insurance Company. The transaction covers Everest’s Canadian Retail Insurance business and is expected to close in the second half of 2026, subject to customary regulatory approvals and other closing conditions.

Everest Insurance Company of Canada is the Canadian retail insurance arm of Everest, a global specialty insurer and reinsurer. It represents Everest’s largest remaining retail platform and its divestiture continues the group’s previously announced plan to exit the Commercial Retail Insurance space.

Everest stated that the sale represents a strong outcome for both organizations, shareholders and colleagues, and advances its strategy to focus on core Reinsurance, Global Wholesale, and Specialty Insurance businesses. The move follows Everest’s 2025 sale of its global Retail Commercial Insurance renewal rights to AIG, and further aligns the group’s portfolio with its core underwriting strengths.

Jim Williamson, President and Chief Executive Officer of Everest, said consistent execution of this strategy remains a priority, and that the agreement supports the firm’s objective of generating sustainable, risk‑adjusted returns over time. Everest described the Canadian retail team as having built a high‑quality, disciplined portfolio powered by strong talent and specialty lines expertise.

For Wawanesa, a Canadian mutual insurer, the acquisition is expected to significantly strengthen its presence in the Canadian commercial market. The deal will add an extensive portfolio of specialty commercial products, including cyber, accident and health, aviation, marine, professional liability and property and casualty for larger businesses with unique or complex needs.

Wawanesa expects the transaction to contribute approximately $305 million in annual commercial lines premiums, representing an increase of roughly 30% over its current commercial volume. The company views the purchase as a powerful strategic fit that will accelerate its diversification and growth priorities across Canada.

President and CEO Evan Johnston said Wawanesa has bold ambitions to grow its commercial presence nationwide and that the talent and expertise gained through the deal will help serve more Canadian businesses across a broader range of industries. Wawanesa intends to operate Everest Canada separately, retaining and supporting key personnel to maintain relationships with broker partners and commercial clients.

To implement the transaction, Wawanesa has entered into a Purchase and Sale Agreement with a wholly owned Everest subsidiary to acquire all issued and outstanding shares of Everest Insurance Company of Canada. Upon closing, Everest Canada will enter into a Loss Portfolio Transfer Reinsurance Agreement with Everest Reinsurance Company, a Delaware‑domiciled Everest subsidiary operating through its Canadian branch.

Under the Loss Portfolio Transfer, Everest will retain exposure to all liabilities associated with policies issued by Everest Canada prior to closing, while Everest Canada will continue to administer claims on Everest’s behalf. In addition, Everest Canada and Everest will enter into a Transition Services Agreement under which an Everest affiliate will provide specified transition services to Everest Canada for a period following completion of the deal.

Advisers on the transaction include TD Securities as exclusive financial advisor and Torys LLP as legal counsel to Wawanesa. Ardea Partners LP is serving as exclusive financial advisor, with Debevoise & Plimpton LLP and Stikeman Elliott LLP acting as legal advisors to Everest.