Canadian property and casualty insurer Definity Monetary (Definity) has acquired a majority stake in McDougall Insurance coverage for a money consideration of C$217m ($159.77m).
The most recent funding in will increase Definity’s stake in McDougall from 25% to 75% and takes the overall funding to C$251m.
McDougall, which was based in 1946, is a property and casualty insurance coverage middleman representing over 50 insurers.
With a workforce of 450, the Ontario-based dealer operates over 40 branches.
Definity first invested in McDougall in 2017 and since then the dealer has accomplished 14 dealer acquisitions and greater than doubled its premium base to round $500m on an annual foundation, Definity stated in an announcement.
By the deal, which is a part of Definity’s company technique, the insurer hopes to learn from diversification benefits supplied by distribution partnerships.
Definity hopes to generate over C$40m yearly from McDougall’s working earnings with Definity’s different dealer investments.
Definity president and CEO Rowan Saunders stated: “With rising income and sturdy working margins, McDougall is a robust franchise that we consider has an excellent brighter future forward of it.
“We’ve been fairness companions with McDougall for over 5 years, and are excited by the chance to increase that partnership and construct on their monitor document of success.”
McDougall CEO Ross McDougall stated: “We’re excited to strengthen our partnership with Definity, which we consider will allow us to speed up our development plans and additional our ambition to succeed in an annual premium base of C$1bn.
“The distinctive construction of this partnership will permit us to take care of and increase the McDougall operations, offering a house for extra brokers to hitch us and preserve fairness within the enterprise going ahead.”
In November this yr, Swiss Re-backed Definity raised C$1.6bn in an preliminary public providing.
