When it comes to financing acquisitions of commercial lines P&C insurance firms, AFL Assurances is no longer working exclusively with Promutuel, revealed AFL Groupe financier’s president, Yan Charbonneau, in an interview with Insurance Journal.
“We are working with several insurers. We have an alliance strategy with insurers and with banks.”
AFL also applies this strategy to financing life & health insurance firm acquisitions. Among the insurers it works with are SSQ Insurance, said Charbonneau. He added that for life insurance firm acquisitions, the amounts financed will not be of the same magnitude as in P&C, but this could change over time.
"Loans are always smaller in life insurance," said Charbonneau. “This market is neither as mature nor as efficient as P&C, but the trend is moving in this direction."
AFL’s P&C firm acquisition strategy has evolved, he added. Previously AFL focused on acquiring P&C firms in the commercial lines market, but this has changed. “We will not limit ourselves to acquiring firms exclusively in commercial insurance. Instead, it will be a mix of commercial and personal lines insurance.”
