CGU plc
Encyclopedia
CGU plc was a large insurance
group, created by the merger of Commercial Union and General Accident. The Company was listed on the London Stock Exchange
.
Commercial Union was established following a conflagration in London
's dockland in 1861, known as the Great Tooley Street Fire, which destroyed a number of warehouses and wharves along the River Thames
as a result of which the fire insurance companies were hit by a series of massive claims. Consequently they increased their fire insurance rates so dramatically that a group of local merchants and brokers decided to form their own company. This became known as the Commercial Union Assurance Company Ltd.
It purchased the Hand in Hand Fire & Life Insurance Society
, the world's oldest fire insurance company, in 1905 and the Ocean Accident and Guarantee Corporation Ltd. in 1910 and it continued to grow by further acquisitions.
General Accident was a financial services firm formed by several mergers and acquisitions over several years. the General Accident and Employers' Liability Assurance Association Ltd. was founded in Perth, Scotland
in 1885. It became the General Accident Assurance Corporation Ltd. in 1891.
General Accident acquired Yorkshire Insurance Company Ltd. in 1967. All general insurance business was relocated to Perth
, with York
becoming the center for the new firm's life assurance and pensions business.
General Accident acquired Stevenage
-based Provident Mutual Life Assurance Association in 1995, merging it with the GA Life and Pensions business as Provident Mutual Life Assurance Ltd. York became the centre of all life assurance business and Stevenage of all pensions business.
in 2000 to form CGNU plc, later renamed Aviva plc.
In the US, the CGU casualty and property businesses were purchased by White Mountains Insurance Group
; the name of the Company has since changed to OneBeacon Insurance Company.
Insurance
In law and economics, insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer is a company selling the...
group, created by the merger of Commercial Union and General Accident. The Company was listed on the London Stock Exchange
London Stock Exchange
The London Stock Exchange is a stock exchange located in the City of London within the United Kingdom. , the Exchange had a market capitalisation of US$3.7495 trillion, making it the fourth-largest stock exchange in the world by this measurement...
.
History
The Company was created by the 1998 merger of Commercial Union and General Accident.Commercial Union
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
's dockland in 1861, known as the Great Tooley Street Fire, which destroyed a number of warehouses and wharves along the River Thames
River Thames
The River Thames flows through southern England. It is the longest river entirely in England and the second longest in the United Kingdom. While it is best known because its lower reaches flow through central London, the river flows alongside several other towns and cities, including Oxford,...
as a result of which the fire insurance companies were hit by a series of massive claims. Consequently they increased their fire insurance rates so dramatically that a group of local merchants and brokers decided to form their own company. This became known as the Commercial Union Assurance Company Ltd.
It purchased the Hand in Hand Fire & Life Insurance Society
Hand in Hand Fire & Life Insurance Society
The Hand in Hand Fire & Life Insurance Society was one of the oldest British insurance companies.The company was founded in 1696 at Tom's Coffee House in St. Martin's Lane in London...
, the world's oldest fire insurance company, in 1905 and the Ocean Accident and Guarantee Corporation Ltd. in 1910 and it continued to grow by further acquisitions.
General Accident
Perth, Scotland
Perth is a town and former city and royal burgh in central Scotland. Located on the banks of the River Tay, it is the administrative centre of Perth and Kinross council area and the historic county town of Perthshire...
in 1885. It became the General Accident Assurance Corporation Ltd. in 1891.
General Accident acquired Yorkshire Insurance Company Ltd. in 1967. All general insurance business was relocated to Perth
Perth, Scotland
Perth is a town and former city and royal burgh in central Scotland. Located on the banks of the River Tay, it is the administrative centre of Perth and Kinross council area and the historic county town of Perthshire...
, with York
York
York is a walled city, situated at the confluence of the Rivers Ouse and Foss in North Yorkshire, England. The city has a rich heritage and has provided the backdrop to major political events throughout much of its two millennia of existence...
becoming the center for the new firm's life assurance and pensions business.
General Accident acquired Stevenage
Stevenage
Stevenage is a town and borough in Hertfordshire, England. It is situated to the east of junctions 7 and 8 of the A1, and is between Letchworth Garden City to the north, and Welwyn Garden City to the south....
-based Provident Mutual Life Assurance Association in 1995, merging it with the GA Life and Pensions business as Provident Mutual Life Assurance Ltd. York became the centre of all life assurance business and Stevenage of all pensions business.
Norwich Union merger
The Company merged with Norwich UnionNorwich Union
Norwich Union was the name given to insurance company Aviva's British arm before June 2009. It was originally established in 1797. It is the biggest life insurance provider in the United Kingdom, and has a strong position in motor insurance...
in 2000 to form CGNU plc, later renamed Aviva plc.
In the US, the CGU casualty and property businesses were purchased by White Mountains Insurance Group
White Mountains Insurance Group
White Mountains Insurance Group is a holding company with business interests in property and casualty insurance, and reinsurance. The group owns the direct marketing insurer Esurance and a 75% stake in specialty insurance carrier OneBeacon. In 2008 White Mountains Insurance Group also acquired a...
; the name of the Company has since changed to OneBeacon Insurance Company.