CANADA’S ECONOMICAL MUTUAL BUYS FEDERATION INSURANCE

Canada’s Economical Mutual Insurance Co has acquired full control of locally based Federation Insurance Co of Canada. The deal saw Economical taking a 60% stake in Federation from a Swiss unit of Italy’s Generali and the remaining holding from Switzerland’s Helvetia Patria group. Federation currently concentrates on the non-life insurance sector and has a market share of nearly 1%. Generali reported that the sale reflected its strategy of investing in companies with high market shares and high profitability, while Helvetia Patria said that part of its proceeds from the deal would be used to help finance its acquisition of Spanish insurer Previsión Española.