VANCOUVER, May 16, 2013 /CNW/ – Western Financial Group (Western) and
Coast Capital Savings Credit Union (Coast Capital) announced today that
they have reached an agreement on the sale of Coast Capital Insurance
Services Ltd. (CCIS) by Coast Capital to Western. CCIS is a subsidiary
of Coast Capital and currently offers property, casualty, commercial,
life and disability insurance products through 32 retail insurance
offices and a call centre. The life and disability insurance business
of CCIS will remain with Coast Capital. Western is the largest and
fastest growing insurance brokerage in Western Canada, and the purchase
of CCIS locations across the Lower Mainland and southern Vancouver
Island will complement the 29 branches in 22 communities they currently
operate throughout British Columbia.

“We’re very proud to be able to bring Coast Capital Insurance Services
into our family of companies. It is a tremendous organization that has
the same commitment to community as we do,” said Scott Tannas,
President and CEO of Western. “This is the largest deal we’ve
negotiated to date and will help us solidify our presence throughout
the B.C. market. We look forward to building on the traditions of great
service and community support that Coast Capital has established.”

“At Coast Capital we’re proud of all that our insurance subsidiary and
its employees have accomplished. When we decided to concentrate our
resources on our core banking business, our goal was to find a partner
who could help CCIS grow further and reach its full potential,” said
Tracy Redies, CEO of Coast Capital. “Coast Capital and Western have
similar values and a commitment to our people, our customers and our
communities. In Western, we saw a strong entrepreneurial spirit and
customer service focus which we believe will help build the CCIS
business, and their dedicated focus on insurance will provide more
opportunities for employees. Most importantly though, this allows
more banking and insurance services to be offered to our collective
customers as we look for more opportunities to expand our businesses
and serve customers in our markets.”

Under the terms of the agreement between Western and Coast Capital, CCIS
branches will continue to operate under the CCIS name and branding for
at least two years. Western will continue to employ all of CCIS’s 242
staff members while working with Coast Capital to enhance banking and
insurance offerings to both Western and CCIS customers. The deal is
expected to close in July 2013.

Western Financial Group is a subsidiary of Desjardins Group
(Desjardins), the largest co-operative financial group in Canada.
Desjardins and Coast Capital have developed close ties over several
years which were further enhanced with the signing of a memorandum of
understanding in April 2013 regarding principles of co-operation to
share expertise in products and services which will benefit both
organizations.

“Desjardins Group welcomes this important acquisition that will
reinforce Western Financial Group’s leadership role in Western Canada’s
insurance market,” said Monique F. Leroux, Chair of the Board,
President and CEO of Desjardins Group. “This opportunity also builds on
our partnership with Coast Capital Savings as we look for more
opportunities to bring the great benefits of the financial services
co-operative model to more Canadians.”

About Western Financial Group
Western Financial Group is a western Canada based, diversified,
financial services company serving more than 600,000 customers. Founded
in 1996 and headquartered in High River, Alberta, Western provides
insurance services through more than 120 office locations and the
Internet (www.westernfinancialgroup.ca). With a skilled team of approximately 1,600 employees, and backed by the
strong resources of its owners, Western is committed to building the
strongest financial services company in Western Canada.

Western Financial Group is a subsidiary of Desjardins Group, the leading
co-operative financial group in Canada.

About Coast Capital Savings
Coast Capital Savings Credit Union is Canada’s largest credit union by
membership with 504,000 members, total assets under administration of
$14.6 billion and 50 branches in the Metro Vancouver, Fraser Valley,
and Vancouver Island regions of British Columbia. Product innovations
include Canada’s first free chequing account from a full-service
financial institution and the country’s most flexible mortgage product,
the You’re the Boss™ Mortgage, which was named 2010 Mortgage of the
Year by canadianmortgagetrends.com. Coast Capital offers one of
Canada’s 10 Most Admired Corporate Cultures™. It is a member of
Canada’s Best Managed Companies Platinum Club and an Imagine Canada
Caring Company. To learn more, visit www.coastcapitalsavings.com.

About Desjardins Group
Desjardins Group is the leading co-operative financial group in Canada
with assets over $200 billion. Drawing on the strength of its caisse
network in Qu bec and Ontario and its subsidiaries across Canada, it
offers a full range of financial products and services to its members
and clients. Desjardins specializes in Wealth Management and Life and
Health Insurance, in Property and Casualty Insurance, in Personal
Services, in Business and Institutional Services. Best Corporate
Citizen in Canada for 2012 and among Canada’s Top 100 Employers,
Desjardins is supported by the skills of its 44,942 employees and the
commitment of 5,268 elected officers. Desjardins members and the
general public are invited to visit Desjardins Group’s education and
cooperation program website at www.desjardins.com/co-opme.

Forward-looking Information
Certain statements made in this news release, including, but not limited
to, statements relating to the proposed acquisition by Western of the
shares of CCIS and certain strategic benefits expected to result from
the transaction, and other statements that are not historical facts,
are forward-looking. Forward-looking statements, by their very nature,
are subject to inherent risks and uncertainties and are based on
several assumptions which give rise to the possibility that actual
results or events could differ materially from our expectations
expressed in or implied by such forward-looking statements. The
completion of the above-mentioned proposed transaction is subject to
customary closing conditions, termination rights and other risks and
uncertainties including, without limitation, the obtaining of various
consents and regulatory approvals. Accordingly, there can be no
assurance that the proposed transaction will occur, or that it will
occur on the terms and conditions contemplated in this news release.
The proposed transaction could be modified, restructured or terminated.

SOURCE Western Financial Group