The insurance world is rife with news of mergers and acquisitions at national, provincial and local levels. Merging with another company can be a great way to expand business prospects and clientele – and it feels especially good if the deal is done between friends.
This was the case for Ontario-based brokerage McDougall Insurance and Financial, which has taken over Monkman Gracie Johnston Insurance, based in Peterborough.
McDougall is an independent brokerage with 30 offices in eastern Ontario and the Ottawa Valley. It has 330 employees and has made $250 million in property-casualty premium. The merger is set to increase McDougall’s presence in eastern Ontario.
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“We know the Monkman brokerages and have been friends with the owners for quite some time,” Ross McDougall, CEO, McDougall Insurance & Financial, told Insurance Business. “They talked to us about six months ago about their desire to sell their business at some point. Peterborough was a territory we had no presence in but always wanted to target, so that’s how it started. We had a personal relationship with them so they felt that they knew us and could trust us to be a good fit for their brokerage.”
Monkman Gracie Johnston has 22 employees in Peterborough. All employees will remain with the company in the branch office alongside current owners Eric Monkman and Dave Smith. As well as bringing business opportunity in Peterborough, the small brokerage also offers a large book in commercial dealerships.
McDougall said: “They are very active in automobile dealerships. It’s a commercial niche that they have a very large book of and that’s a niche we would like to get involved in. We have some involvement in that sector at the moment but this merger will enhance our ability to get involved further.
“As for future expansion, we are not looking to go outside of Ontario, Eastern Ontario and the Ottawa Valley. But we may look at other parts of the province when opportunities arise.”
The brokerage will also look to expand its presence in Peterborough, according to McDougall. It will do this by helping Monkman Gracie Johnston grow.
He said: “We really like the brokerage because it’s very well run. In the future, we will be adding people to that brokerage to take full advantage of the Peterborough location.”
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