AGA Benefits Solutions has integrated the group insurance operations of Groupe financier Powers, the consolidator announced in a blog post published on its website on Nov. 5. A multidisciplinary firm based in Quebec City, Groupe financier Powers also operates in individual life and health insurance and financial planning.
Under the terms of the agreement, the amount of which has not been disclosed, Groupe financier Power's group insurance clients will now be served by AGA. Anthony Powers, President of Groupe financier Powers, has become a shareholder in AGA.
The agreement also provides for Anthony Powers to be actively involved in the transition of current files and he will continue to identify and refer group insurance clients. “Groupe financier Powers’ employees dedicated to group insurance have joined the AGA team and remain involved with clients to whom they were previously assigned,” explains the AGA blog post.
Expansion and shared values
AGA says this transaction will enable it to continue its expansion. “We are excited about this partnership with Groupe financier Powers, which expands our group insurance footprint in Quebec and demonstrates the relationships of trust we have built with various industry partners,” stated Martin Papillon, President and CEO of AGA Benefit Solutions, in the blog.
“It was clear to us that AGA was the ideal destination for our group insurance client portfolio given our shared values and AGA’s reputation in the market,” added Anthony Powers.
AGA mentions in its blog that Powers' firm will continue its other operations, namely life and living benefits insurance and financial planning.
Canada-wide consolidator
As an advisor, broker, and third-party administrator, AGA joined the movement to consolidate group insurance firms several years ago. Its strategic position accelerated with the arrival of Novacap as a shareholder in October 2020. The support of this private investor enabled it to make some major moves, including the acquisition in October 2021 of PPI Benefits, a subsidiary of the managing general agency, PPI. It gained a foothold in British Columbia a year later with the acquisition of Aptus Benefits. In March 2024, AGA Benefits Solutions gained a new shareholder, TA Associates, when Novacap sold its stake in AGA to this American private investor. The newcomer gave AGA access to $100 million in capital.
In January 2022, AGA Benefit Solutions acquired J&D Benefits, a Markham, Ontario-based provider of customized benefit administration services.
In its blog, AGA reiterates its strategy of moving from being a regional leader to becoming a “national leader.” It says it has more than 300 employees and 7,000 clients. AGA adds that its growth has been sustained both organically and through acquisitions. The consolidator has offices in four provinces: Montreal and Quebec City in Quebec, Kitchener and Markham in Ontario, Calgary in Alberta, and Vancouver in British Columbia.
The Insurance Portal will soon report more details on this transaction and AGA Benefit Solution's objectives.
