Having completed the acquisition of Noraxis Capital Corp., one American commercial insurer says it is now the number five insurance broker in Canada.
Arthur J.
Gallagher completed its acquisition of Noraxis this week, a company with a strong focus on commercial lines, and a full service brokerage operating across Alberta, Manitoba, New Brunswick, Nova Scotia and Ontario from 26 offices, employing more than 650 people.
“The deal simultaneously establishes Gallagher as a major player in the Canadian employee benefits business, complementing existing operations in Calgary and Ottawa, with a similarly strong platform for growth, and substantially widens its geographic personal lines footprint,” according to a statement from the firm. “It also sees Gallagher expand into new specialist niche areas in Canada, such as real estate and condominiums, while building out existing expertise in strongly complementary areas such as professional indemnity and financial lines.”
Arthur J. Gallagher added that by bringing together the company’s existing Canadian operations with those of Noraxis, it will “create a strong platform and extensive regional spread for future national growth,” along with creating the opportunity to develop a “high-end specialty business in Canada through the effective deployment of existing Gallagher strengths in energy, construction and mining as well as wider London-based specialty expertise and capabilities.”
SGI/EGI deal done
Also crossing the ‘I’s’ and dotting the ‘T’s’ on its own deal this week, EGI Financial Holdings Inc. announced it has completed the purchase from Saskatchewan Government Insurance (SGI) of a 75 per cent interest in Insurance Company of Prince Edward Island. (continued.)
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Charlottetown-based ICPEI writes auto, home and commercial insurance through brokers in Prince Edward Island, New Brunswick and Nova Scotia.
Cooke Holdings Inc. continues to hold the 25 per cent of ICPEI that EGI does not own.
Back in March, SGI agreed to sell its 75 per cent stake in ICPEI at book value — estimated to be $10 million at the time — and an additional $3.5 million to license the use of SGI's computer systems.
SGI Canada said its employees supporting ICPEI business were located at its head office in Regina, Sask., and none of them would lose their jobs or have to relocated as a result of the sale.
