Intact swallows Newfoundland-based Metro General | Canadian Insurance

Intact swallows Newfoundland-based Metro General

Regional Maritimes insurer wrote $27 million in home, auto and liability

Intact Financial Corporation has announced that it has signed a definitive share purchase agreement for the acquisition of Newfoundland and Labrador-based Metro General Insurance Corporation Limited. The transaction, whose terms were not disclosed, is expected to close later this year pending regulatory approvals.

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Metro General Insurance Corporation is a privately owned property and casualty insurance company specializing in home, auto and liability insurance with $27 million in direct written premiums. The company operates across Newfoundland and Labrador and in rural Nova Scotia through a network of 13 brokers.

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The Metro General acquisition should further improve Intact’s market position in Newfoundland and Labrador, said the company in a release. “Over the years, the Metro General team has built a highly successful organization providing quality services to its brokers and customers,” said Alan Blair, Senior Vice President of Intact Insurance. “While the acquisition will allow us to expand our reach, Metro General customers will benefit from the broad offering of products and services of Intact Insurance and our outstanding customer-driven orientation,” said Blair.

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Intact is Canada’s largest insurer with 15% market share, but currently sits in third in Newfoundland (with direct written premiums of $87.5 million across all lines) behind RSA ($152 million in direct written premiums), and Aviva ($98.5 million in direct written premiums). The acquisition of Metro General would move Intact into second place behind RSA, which has a strong presence in the province through its affiliated brokerage business, Johnson Inc. The Newfoundland and Labrador market accounts for 1.45% of all direct written premiums in the country.*

Hayley Wilson, President and CEO of Metro General, said that the transaction will be beneficial to Metro General employees, brokers and customers. “Joining one of the most respected providers of property and casualty insurance in Canada will create new career and development opportunities for our employees while brokers and customers will benefit from Intact’s unparalleled portfolio of insurance solutions and its high quality services.”

*All figures from the 2013 Canadian Insurance Top Broker Annual Statistical Issue, based on 2012 results.

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