19 February 2019 13:30
Photo : Freepik
National bank launches version 2.0 of its funding program for the damage insurance brokerage. This strategy aims to meet the needs of dealers wishing to not have insurance into the picture to finance their projects, ” she explains.
Benoit Laroche, associate vice-president, business services, insurance and professional firms, said that the Bank is present since three years and a half in the sector of damage insurance brokerage. Two years ago, the bank announced that it had a budget of a billion dollars at the disposal of the insurance brokers of Canada’s property and casualty.
A solution for the self-employed
By this new act, the bank wants to allow brokers who want to fund the maximum amount of a transaction, whether an acquisition or a transfer to the next generation, to 100 % with it. The bank also adds to the thresholds of the loans that it would have allowed up to now.
“We find a lot of independent dealers who want to place 100 % of their loan with us, without that an insurer is present in the equity. We will, of course continue to respond to requests that prefer an insurer is also involved in the transaction. We will, however, be able to put more money on the table for the independent brokers. We have reviewed our criteria to this effect, ” said Mr. Laroche.
Redeploy the capital
Mr. Laroche is expected that insurers will respond to this announcement. According to him, the approach proposed by the National Bank allows them to redeploy their capital to other effects. It clarifies, however, that the presence of an insurer in a transaction is an element of security to guarantee a loan, but also to offer a lower interest rate. This evaluation is done on a case-by-case basis, specifies-t-it.
He stressed that the National Bank has recently made a loan to a broker that had its funding from an insurer, who was also a shareholder in it. The National Bank has taken over the portion of funding, not changing anything to the shareholder by the insurer for this broker. Banking secrecy obliges, Mr. Laroche could not reveal the name of the broker who has purchased the loan.
A success of its acquisition and its financing
The Day of damage insurance, in the framework of its Vision of business leaders, will hold a conference on the financing of a transaction in the brokerage. Attendees will be able to hear Denis Moisan, a facilitator in the sale of businesses and business volumes in insurance, which comes with both the acquirer, the transferor, the employees and the customers in this transition, as well as Yan Charbonneau, who acquired the 6 firms in a year and a half.
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