RSA Canada, a commercial insurer, has agreed to purchase L'Union Canadienne from its parent company, Co-operators General Insurance Company (CGIC).

According to the company, the cost of transaction is $150m and is subjected to regulatory approval, as well as other standard closing adjustments and conditions.

RSA Canada President & CEO Rowan Saunders said the acquisition offers significant opportunities for employees, brokers and customers of both companies.

"This acquisition positions RSA as a top 5 insurer in Quebec and solidifies us as the third largest P&C insurer in Canada," Saunders added.

"Following a series of recent acquisitions, RSA is now positioned as the insurer with the broadest national personal and commercial proposition, offering end to end solutions from coast to coast."

The Co-operators President and CEO Kathy Bardswick said this was the appropriate time for the sale of L’Union Canadienne as the company is well positioned to build on its recent success in growing direct distribution business in the Quebec.

"L’Union Canadienne has been a significant contributor to The Co-operators success since it was acquired by our organization in 1999," Bardswick added.

Employing over 300 people, L’Union Canadienne is the third-largest intermediated motor and property insurer in Quebec, and distributes its products through a network of more than 150 brokers across the province.

RSA Canada is a part of UK-based commercial insurer, RSA, and currently operates three offices in Quebec, with approximately 200 employees.