The Western Investment Company of Canada has agreed to purchase a 50% stake in a Western Canadian property and casualty insurance firm.

The deal, worth around $2m, is expected to be wrapped up in April next year.

It is currently pending approval from the TSX Venture Exchange, Alberta Superintendent of Insurance, as well as the Western board.

At the same time, the insurer unveiled plans to collaborate with around a dozen brokers based in western Canada in order to drive growth.

It also intends to explore new insurance product niches and take part in existing insurance programmes.

Western president and CEO Scott Tannas said: “We at Western have been clear in our intention to enter the insurance sector in western Canada. In fact, it was an important component of our founding plan. We believe we have found the ideal partner and platform to launch a specialty underwriter that will blossom into a successful and profitable financial institution.

“Over the coming weeks we will work to finalise our plans and seek necessary approvals, and will provide additional information to stakeholders as conditions to the transaction are removed.”