August 30, 2019 09:30
Three years. This is the time that is given Intact financial Corporation to improve the combined ratio of the acquired business of The Guarantee Company of North America.
While it is 98 % Intact expects to reduce the combined ratio of the activities of The Guarantee to 90 % within three years. Louis Marcotte, chief financial officer at Intact, said that his company will be able to act on four fronts to improve it, he announced to financial analysts during a conference call held by the largest canadian insurer following the announcement of this transaction.
In the first place, Intact will review the underwriting activities of The Warranty. The insurer intends to integrate its new digital tools to enhance the quality. Then, comes the management of claims, where the Intact account to play its expertise in the field. Subsequently, Intact leverage the economies of scale resulting from the transaction, that the insurer $ 20 million dollars (M$). Last means : the management of the capital of The Warranty will be in Tact.
Also present at this telephone conference call Charles Brindamour, ceo of Intact insurance, has revealed that the acquisition of The Warranty allows the company to position itself as the sixth-largest player in the market of the bond in North America. The Warranty had a volume of$ 80 Million in the United States, of which one-third was in this segment of the market.