Intact’s latest acquisition may or may not speak to the maturity of the P&C space, but it absolutely speaks to the company’s growing interest in another, rapidly expanding market
Intact’s latest acquisition may or may not speak to the maturity of the P&C space, but it absolutely speaks to the company’s growing interest in another, rapidly expanding market.
Intact Financial Corporation (IFC), the largest property and casualty insurance provider in Canada, has purchased a majority stake in Montreal-based Comerco Services for an undisclosed sum, according to Furniture Today.
Comerco Services describes itself as “the Canadian leader in Protection Plan management” and operates as provider of extended warranties and furniture coverage. There will be no changes to Comerco’s name or brand, and its leadership team will remain in place.
Comerco had previously been partnered with Mabe Canada, a distributor of G.E. Appliances based in Mississauga. Mabe decided to relinquish its 50% stake in Comerco so it could refocus its attention on selling Mabe and G.E. products.
IFC hopes that the purchase will allow it to expand its offerings and gain deeper insight into a new market.
“This transaction represents a great opportunity for us to diversify our operations while leveraging Comerco’s expertise,” Hazel Tan, IFC manager of external communications, told Furniture Today.
In addition, IFC believes that P&C complements the extended warranty market well, and believes that the acquisition will allow it to gain a more strategic footing in this space.
“We see a number of similarities between the extended warranty market and our P&C operations,” Tan said. “This investment will allow us to learn more about this business and provide Intact access into the protection plan market by partnering with an established leader in this field.”
This also comes at a time when analysts are pointing to the relative maturity of the Canadian market, which has encouraged a number of carriers to look outside of the P&C space for growth opportunities.
Comerco has business engagements with more than 500 Canadian retailers and offers coverage to about 1.6 million consumers.
