HSBC sells Canadian Direct Insurance for €15.28m to Canadian Western Bank

HSBC Holdings PLC said it is to sell HSBC Canadian Direct Insurance Inc for $25.4m cad (€15.28m) cash to Canadian Western Bank.

The deal is expected to complete in 4 to 6 weeks, subject to definitive documentation and regulatory approval.

Canadian Direct, a subsidiary of HSBC Bank Canada, offers property and casualty insurance directly to consumers in British Columbia and Alberta.

It had $105m cad (€63.19m) of balance sheet assets at December 31, 2003 and $36m cad (€21.66m) of net earned premiums for the year then ended.

The purchase price incorporates a 25% premium over book value and Canadian Western Bank expects the acquisition to be accretive to earnings in the current fiscal year.