Everest Group Ltd. (NYSE: EG) announced that it will sell its Canadian Retail Insurance operations, Everest Insurance Company of Canada, to Wawanesa Mutual Insurance Company. The transaction, which will transfer all specialty commercial insurance products—including cyber, accident and health, aviation, marine, professional liability, and property and casualty—adds roughly $305 million in annual commercial lines premiums to Wawanesa, a 30% increase over its current volume.
The sale is part of Everest’s “1‑Renewal Strategy,” a plan to shed non‑core, high‑loss‑ratio lines and focus on profitable reinsurance and wholesale specialty businesses. The deal follows a 2025 sale of Everest’s global Retail Commercial Insurance renewal rights to AIG, underscoring the company’s broader move to exit retail operations.
Everest’s fourth‑quarter 2025 results showed a net income of $446 million, a turnaround from a $593 million loss in Q4 2024. For the full year 2025, net income reached $1.59 billion, up from $1.37 billion in 2024, while gross written premiums fell 3.1% to $17.7 billion. The Insurance segment’s combined ratio in Q4 2025 was 117.0%, indicating underwriting losses in that line.
Wawanesa, an A‑rated mutual insurer with $11.5 billion in assets, is positioned to grow its commercial lines portfolio. The acquisition will expand Wawanesa’s presence across a broader range of industries and strengthen its market share in Canada.
Jim Williamson, Everest’s CEO, said, “This transaction represents a strong outcome for both organizations, our shareholders and our colleagues. The Canadian Retail team has built a high‑quality, disciplined portfolio. This agreement enables us to realize compelling value and to transition our colleagues to a growth‑oriented organization committed to expanding its commercial retail presence in the Canadian market.”
Evan Johnston, Wawanesa’s CEO, added, “Everest has built a respected commercial business in Canada, powered by strong talent, deep specialty lines expertise, and a disciplined, entrepreneurial underwriting culture. We look forward to welcoming the Everest Canada team and investing in their proven model to further expand our ability to serve more Canadian businesses across an even broader range of industries.”
Wawanesa will operate Everest Canada as a separate entity and retain key personnel to maintain client relationships and broker partnerships. The transaction is subject to customary closing conditions and is expected to close in the fourth quarter of 2026.
The divestiture is expected to improve Everest’s balance sheet by removing an underperforming retail book, reduce its overall combined ratio, and free capital for growth in its core reinsurance and specialty lines. For Wawanesa, the deal represents a significant 30% premium growth and a strategic expansion into new specialty markets, reinforcing its competitive position in Canada.
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