One of Canada's top five group benefits brokerages, AGA Benefit Solutions has decided to return to full Canadian ownership.
AGA has welcomed Novacap and the Fonds de solidarité FTQ as shareholders. The two Canadian investment firms have acquired the stake previously held by U.S. private equity firm TA Associates.
For Novacap, this marks a return to familiar territory. The private equity and investment specialist was previously a shareholder in AGA from 2020 to 2024. In fact, Novacap's exit from AGA was what opened the door to the American firm.
The tariff war has really changed the dynamics – Martin Papillon
The transaction involving AGA and its new partners closed on October 30, 2026, Martin Papillon, President and CEO, revealed in an exclusive interview with Insurance Portal.
Having Canadian shareholders has become increasingly important recently, Papillon explained. "The tariff war has really changed the dynamics of the Canadian market. Having an American partner in a context where so many companies are laying off employees because of tariffs was not something we found particularly promising," he said. That is why he began looking for new shareholders about a year ago.
He approached these two partners as a strategic choice. "The Fonds FTQ is a major player that has invested in hundreds of companies in Quebec. It's a patient investor that can stay for a long time. Novacap is probably the only Canadian private equity fund dedicated to financial services. Our partnership with them from 2020 to 2024 was extremely productive."
Indeed, Novacap has identified the financial services industry as one of its four target sectors. The others are technology, digital infrastructure and industrials. The fund focuses on acquiring controlling interests in middle-market and lower-middle-market companies. The firm also holds stakes in several companies, including Revau, a managing general agent serving property and casualty insurance brokerages across Canada, and Consilium Insurance, another property and casualty insurance brokerage.
Martin Papillon says he is targeting annual organic growth of 10% and intends to triple the company's business volume through acquisitions over the next five to seven years. Papillon expects to announce transactions soon. His preferred regions for expansion are Ontario, Alberta and British Columbia. The brokerage has more than $1 billion in premiums and assets under management. Its operations extend across Canada, with Quebec accounting for 70% of its business volume.
AGA employs 300 people across Montreal, Quebec City, Kitchener, Markham, Edmonton, Calgary and Vancouver. According to its website, the brokerage serves more than 7,000 clients, including small, medium-sized and large businesses, many of which have employees in every Canadian province. AGA also describes itself as one of Canada's leading third-party administrators and third-party claims payers (TPA/TPP).
