iA Financial Group has announced the acquisition of Global Warranty, a company specialized in the provision and administration of warranty programs for the used vehicle market.
The transaction was disclosed before markets opened on Feb. 4. Based in London, Ontario, Global Warranty operates through a network of more than 1,500 used vehicle dealers and over 400 authorized repair shops across Canada.
Founded in 1987 by Roy Neufert, Global Warranty has built a strong presence in the sector. “We chose to sell our business to iA Financial Group because of their long history in the warranty business,” Neufert stated in the press release announcing the deal. He noted that iA already maintains relationships with more than 10,000 new and used car dealers across North America.
According to Gwen Gareau, senior vice president, iA Dealer Services and iA Auto Finance, Global Warranty is “a well-run organization with a strong reputation.” She added that the acquisition “will increase our presence in the used vehicle warranty market, with long-standing operations in London, where our subsidiary Lubrico Warranty is also based.”
Pierre Miron, executive vice president and chief growth officer for iA Financial Group’s Canadian operations, emphasized that the deal “fits perfectly with iA Dealer Services’ growth strategy.” iA has been active in the automotive warranty sector for over 60 years, and the used vehicle market presents strong growth opportunities, Miron added.
Financial impact
The transaction has already taken effect. According to iA Financial Group, it is expected to enhance core earnings and disclosed earnings, though it will reduce the company’s solvency ratio by one percentage point.
On its website, Global Warranty explains that it offers consumers a discount on auto insurance for their vehicles through Sonnet Insurance. Chantal Corbeil, head of public affairs at iA, confirmed to Insurance Portal that “Global Warranty will continue to provide customers with the option of obtaining vehicle auto insurance through Sonnet.”
Corbeil also noted that while iA distributes its own vehicle damage insurance products in Quebec, it does not do so in other Canadian provinces.
Recent acquisitions
This marks iA Financial Group’s latest expansion in Canada, following its April 2024 acquisition of Laurentian Bank Securities’ full-service retail brokerage division.
More recently, in July 2024, iA completed another acquisition in the United States, purchasing two policy portfolios totaling 115,000 policies from a Prosperity Life-affiliated company.
