La Capitale Insurance and Financial Services and SSQ Insurance have jointly announced that their merger has been approved by the National Assembly of Quebec.
The merger now only needs approval from the Autorité des marchés financiers and the Minister of Finance. The insurance companies confirmed that dialog with the financial regulators is underway, and that they had obtained the approval of their respective mutual members last March.
Once fully approved, the merger will take place on July 01, 2020.
La Capitale and SSQ Insurance first announced their intention to merge operations earlier this year. The merger will create the biggest mutual insurance company in Canada, with about 4,700 employees and over 3.5 million members and clients.
Combined assets under management for the combined entity will total over $20 billion, and consolidated premiums will be worth approximately $5 billion.
Currently, nothing is changing for both companies’ clients and employees. But a transition committee with representatives from each company is working to ensure the merger process is seamless. La Capitale and SSQ Insurance expect the integration to take place gradually.
The combined entity’s head office will remain in Quebec City for the long term, but with a nationwide reach. The name of the new entity will be announced in the months to come.
Following the merger, current La Capitale chairman of the board and CEO Jean St-Gelais will serve as chair of the board of directors of the combined merger, while current SSQ Insurance president Jean-François Chalifoux will serve as the new company’s CEO.
