You are here
Insurance 

Intact acquires The Warranty

by

Andrea Lubeck

August 15, 2019 12:30

Charles Brindamour

Intact financial Corporation has announced to proceed with the acquisition of The Guarantee Company of North America and Frank Cowan Company Limited of the hands of Princeton Holdings for an amount of one billion canadian dollars.

The transaction is expected to close in the fourth quarter of 2019 and is subject to regulatory approvals. Princeton Holdings remains the owner of the companies Cowan Insurance Group, Cowan Asset Management and Fountain Street Finance.

Intact argues that the acquisition reinforces its position in the canadian market and adds new products to the high net worth clients, in addition to contributing to the platform of specialty products.

“The acquisition of The Guarantee and the Frank Cowan Company is closely linked to our strategic and financial objectives,” says Charles Brindamour, ceo of Intact financial Corporation. We reach our growth objectives in Canada and construction of a specialized platform of the first plan in North America. I am excited about what we will accomplish by leveraging the combined expertise of our teams and our extended offering. “

Combining expertise and advanced analysis

“The Guarantee and Frank Cowan Company have built over the last 150 years, strong activities focused on customers and business segments specialized, for which we are very proud of. After careful consideration, we believe that the combination of our customer focus and expertise of our employees in specialized areas and security with the resources Intact, in particular its capacity for advanced analysis, provide the entities merged tremendous opportunities to leverage the strengths of each to be a specialist insurer northern-outstanding american and canadian-owned, ” explained Maureen Cowan, chairman of the board of directors, Princeton Holdings Limited.

Frank Cowan Company is a wholesaler specializing in the sale of insurance coverage, risk management, and provides claims services for municipalities in addition to the sectors of health, education, community and social services and child welfare. The company has agreements with several insurers, including The Warranty.

Synergy financial

Intact expects the transaction to enable them to improve their loss ratios, reduce its costs and optimize its reinsurance and capital. Moreover, the combination of the platforms and promises of opportunities to grow, ” says the insurer.

Intact draws the financing of the transaction to its capital reserve, but it confirms that its level of capital remains to 195 %. The insurer expects that the transaction already increases slightly its net operating income per share during the first 24 months following the closing of the acquisition.

Related posts

Leave a Comment