Intact Financial Corporation (“IFC”) confirmed that it has finalized its acquisition of Canadian Direct Insurance Inc. (“Canadian Direct” or “CDI”), which will allow it to offer its direct-to-consumer services from coast to coast.
Under the acquisition, Canadian Direct’s Alberta operations will integrate with belairdirect, the direct-to-consumer brand that IFC already owns. In British Columbia, Canadian Direct operations will operate as normal, continuing to offer its products directly to consumers.
"The completion of this transaction represents a great opportunity to grow our direct operations while improving our ability to respond to the evolving needs of our customers," Louis Gagnon, President Service & Distribution, said in a statement. "The benefits of combining this experienced local team and their track record of strong underwriting performance in Western Canada with the dynamic team at belairdirect will help the organization achieve its goals of growth and innovation."
Over the past three months, belairdirect has been working with CDI to integrate its “administrative practices, processes, and systems” as smoothly and efficiently as possible. The planning is almost complete, and IFC hopes to benefit from the transition as soon as it begins.
IFC reports that the acquisition was financed through excess capital, and the company “expects to maintain its strong capital position on closing with an estimated MCT above 200%.” The annual synergies produced from cost reductions and more efficient claims processes should equal $10 million.
