With fresh backing from two institutional investors, Synex Business Performance is charging into its next phase of expansion with a clear target in sight.
The Quebec-based independent insurance brokerage, which recently secured investment from CDPQ and Aries, has bold plans to double its size and to scale within – and beyond – Canada.
"Our goal is to reach $6 billion in premiums, which is five times our actual size in five years," Yan Charbonneau, Synex president and chief visionary officer, told Insurance Business. “We went with two partners who are ready for more of a long-term commitment and who are more aggressive in driving growth.”
Charbonneau confirmed that expansion into France and other European markets is on Synex’s radar. The plan includes a mix of reinvestment into existing operations and acquisition-fuelled expansion.
Synex’s model has gained traction quickly in the past five years, establishing a national footprint with more than 20 firms and over 700 employees, generating over $1 billion in annual premium volume.
Charbonneau emphasized that the firm runs a decentralized but integrated strategy, where local brokers maintain operational control. "We don't need a huge top company to manage all the details. We give back a lot of the responsibility locally," he said. This approach has enabled Synex to scale without sacrificing autonomy at the branch level.
With Quebec still accounting for half of its premium volume, the company is now zeroing in on Western Canada as a growth region. Last week, Synex announced its first deal since its re-capitalization exercise, partnering with established brokerages in the Greater Toronto Area. Charbonneau said the deal is part of a broader pipeline, with most future acquisitions planned in the West.
Synex had taken a breather on acquisitions in 2023 to integrate earlier deals and weather rising interest rates. Now, the firm is back in the game.
"We've been working very hard in the last part of 2024 to do our recapitalization, allowing us to do the next round of acquisitions," Charbonneau said.
In terms of sector focus, Synex is sticking to its strengths. Commercial lines remain the priority, making up 85% of its Quebec business. But there's room to move in personal lines as well, thanks to experience gained from acquiring Sharp Insurance in 2021.
"We’ve built our knowledge and our expertise now in personal lines,” said Charbonneau. “We’re now diversifying in all segments, although commercial lines always are the preferred target.”
The coming months are expected to bring news of further acquisitions and early steps into the European market. The groundwork laid in 2024 was designed to support a multi-year expansion push.
With a model that preserves local control, Synex is aiming to position itself as a unique consolidator in the market. It’s a strategy that Charbonneau believes hasn’t been replicated at their size. "There’s a lot of appetite for this model,” he said. “It’s going to be the same, but outside Canada.”
As for risks in Canada’s macro environment, Charbonneau isn’t fazed. He suggested that the uncertainty might prompt some brokerage owners to sell.
"This environment is maybe not all blue sky,” he said. “But we have a long runway. Taking more risks and doing more acquisitions is not a stressor in this environment.”
The firm is betting that its business model will continue to resonate with brokers and allow it to thrive through economic shifts.
"(Insurance) has been COVID-proof, it’s been recession-proof. Now, we’re going to see if it’s tariff-proof,” said Charbonneau.
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