The Wawanesa Insurance San Diego

A. Venture South

The Wawanesa Mutual Insurance Company is currently a leading Canadian mutually owned Property/Auto/Casualty insurer with assets of over 4 billion dollars.

The Company was established as a farmers' mutual insurance carrier in 1896 in Wawanesa, Manitoba. By 1943, the company had become a national company. In the beginning of 1970th the government carried out takeover of auto insurance.

The cumulative losses of auto business brought the question of diversification to Wawanesa board in order to control risk. It became evident that growth outside the region was necessary.

The discussion was not about new types of insurance, but on the daring step to expand operations outside Canada.

It soon become apparent that the United States were the most promising targets. States were the most promising targets.

Soon Wawanesa had its license to sell insurance in California gaining market as large as Canada. Wawanesa became the first Canadian insurance company to enter the United States. In April of 1975 it was opened the San Diego office.

San Diego becomes the best choice possible for Wawanesa.

The area's population increased fivefold over the next 20 years and Wawanesa was positioned to grow with the region.

In 1981 after six years of development the California operation needed a major change og equipment to keep pace.

It was soon followed massive computer upgrades across all branches of Wawanesa.

Thereby Wawanesa seized the opportunity of using technology to improve the way to do business. The changes being made at Wawanesa reflected modern and professional approach being adopted by Wawanesa.

Insurance Institute of Canada provided also staff with a greater understanding of their industry. Currently from the San Diego Office it was conducted marketing, underwriting, claims processing, and policyholder services. The Wawanesa U.S. Operation is currently a wholly owned subsidiary of the Wawanesa Mutual Insurance Company of Canada.

Wawanesa underwrites full coverage Automobile, Homeowners, and Condominium Insurance. Private Passenger Automobile and Physical Damage coverages are written at preferref-risk rates ranging from 25 % to 35 % below standard rates.

All policies are issued with a 12-month term, produced by direct mail marketing and are non-assessable.

Wawanesa offers Homeowners insurance coverage for preferred risk single family dwellings at below standard rates. In 1991, the Homeowners line was expended by the inclusion of Condominium coverage. Wawanesa U.S. company ranks among the top twenty auto writers in California.

According its operating philosophy Wawanesa markets preferred Personal Lines Automobile and Homeowners insurance directly to the consumer by direct mail solicitations with .the implementation of radio and newspaper advertising. About 90-93 % of new business is developed from referrals of exiting policyholders.

Expense levels are maintained well below industry averages. These costs savings are passed on to consumers by lower insurance rates.

Based on A.M. Best's current opinion of Wawanesa U.S. Company's financial condition and operating performance it has assigned to the branch a Best's rating of A+ (Superior).

This rating reflects Wawanesa's superior profitability, excellent capitalization, and strong operating cash flows.

The U.S. operation generates about 18 % of the entire property/casualty net premium volume of the organization.