The bank, which describes the deal as a refinement of its long-term growth strategy, says the selling price for Canadian Direct Insurance is about 2.5 times the net book value of the subsidiary as of Oct. 31.
"This transaction is the result of a purposeful strategic assessment that we started over a year ago," CWB president and CEO Chris Fowler said in a statement issued Tuesday after markets closed.
"Our strategic direction is to increase the depth and breadth of client relationships through a focus on our core business banking platform with complementary financial services in personal banking, equipment finance and leasing, alternative mortgages, wealth management and trust services."
Fowler said those core areas provided the best opportunities to drive "meaningful future growth" while the insurance business was "much less strategically aligned."
The transaction, subject to regulatory approvals, is expected to close around mid-year.