June 13 was a busy day for mergers and acquisitions in the industry, with two large companies announcing the acquisition of insurance distribution in one case, and wealth management expertise in the next.

The Canada Life Assurance Company, a subsidiary of Great-West Lifeco Inc. was the first to announce a deal, saying early in the day that it had reached an agreement to acquire Value Partners Group Inc., including Value Partners Investment Counsel, Value Partners Investments and LP Financial Planning Services.

“The acquisition is another step in our efforts to build a leading wealth management platform for independent advisors and their clients in Canada,” they stated. The Winnipeg, Manitoba-based investment firm is known for serving clients with complex and sophisticated wealth needs.

Although the announcement was light on details, they say Canada Life will have $ 89 billion in assets under administration after the close of the deal – expected by the end of 2023. This figure includes assets to be acquired pursuant to Canada Life’s proposed acquisition of Investment Planning Council.

Definity expands in Alberta

Following shortly on the heels of that announcement, Definity Financial Corporation made its own announcement, saying its subsidiary, McDougall Insurance Brokers Limited, has entered into a definitive agreement to acquire 100 % of Drayden Insurance Ltd. for $ 208 million, funded by Definity through McDougall, using excess capital and debt.

“After accounting for all related transactions, Definity’s ownership interest in McDougall will increase to approximately 78 %,” they write.

Drayden brings approximately $ 125 million in annual premiums and employs more than 170 people in eight locations in the Edmonton, Alberta area.

“After closing of the Drayden transaction, McDougall will have over $860 million in annual premiums with 860 employees in 65 office locations,” they add. “Definity continues to hold significant financial capacity for future opportunities.”

The McDougall transaction is expected to close in the third quarter of 2023.