Desjardins has announced that it has entered into a definitive agreement to acquire all issued and outstanding shares of The Insurance Company of Prince Edward Island (ICPEI). The acquisition will be made through Desjardins’ subsidiary Desjardins General Insurance Group Inc.
Desjardins exercised its call options to acquire the ICPEI shares earlier than originally planned, the company said.
The deal will add ICPEI’s home, auto and commercial insurance activities to Desjardins’ operations, according to a news release.
The deal is subject to customary closing conditions and regulatory approvals. The addition of ICPEI will allow Desjardins to broaden its insurance offerings for small and medium-sized businesses, the company said. ICPEI offers commercial and personal lines exclusively through the broker channel.
“With this acquisition, we’re strengthening Desjardins’ position in the Canadian commercial insurance market,” said Guy Cormier, president and CEO of Desjardins. “We’re committed to meet the changing needs of our business members and clients across Canada, and be proactive in our support. That’s why we’re very pleased to be able to count on ICPEI’s expertise in brokerage distribution of commercial insurance to expand our reach and access new markets. With this additional expertise, I firmly believe that we’ll be able to perform even better with businesses, reinforcing our position as a key player in this segment of the Canadian market.”
As a result of the deal, commercial insurance products will be offered through brokers who work with ICPEI in addition to Desjardins Group’s existing direct channel and network of agents, Desjardins said.
“This acquisition is clearly in line with ICPEI’s strategic goals to expand insurance distribution across the country and pave the way for even greater collaborations on the Canadian market,” said Serge Levoie, president and CEO of ICPEI. “Desjardins is a strong financial leader, and this partnership will accelerate our growth to become a major player in insurance distribution with brokers.”
Desjardins originally acquired a minority interest in ICPEI in February 2023, with a plan to acquire the company over a three- to five-year time frame. However, Desjardins decided to expedite the process due to market conditions, opportunities, and ICPEI’s progress on commitments it had made to strengthen the companies’ partnership, Desjardins said.
Desjardins said the acquisition was “an important step” in its efforts to pursue growth in key segments. Last year, the company acquired several entities related to life insurance, mutual funds, and investment distribution from Guardian Capital Group.
Have something to say about this story? Let us know in the comments below.
