Major Group has acquired 100% of the shares of BCI Benefits Coordinators (BCI), the Insurance Portal has learned.
The acquired firm was owned by Alexandre Moïse, also co-founder of MR Gestion de patrimoine & Solutions collectives.
In an interview with Insurance Portal, Louis-François Major, President of Major Group, confirmed the news of the acquisition. "The transaction was completed on July 1, 2022," he said.
Quality staff
Major said that premium volume is key with respect to the wave of consolidation that is currently taking place in the group insurance distribution industry in Canada. In the case of this transaction, he said BCI has approximately $20 million in group premium volume.
"We had discussions with different vendors. With BCI, there was a fit," said Major. “BCI impressed me with the quality of their people. There are just over 15 of them.” He added that the transaction brings the number of Major Group employees to over 70.
In addition, BCI has a significant presence in Ontario, which allows Major to strengthen his company's presence in the province. "Ontario represents one third of our customers. With the acquisition, we will optimize this share by gaining efficiency through our systems." Major Group’s head office is located in Gatineau, Quebec.
Specialist consolidator
Major added that the acquisition of BCI is part of a larger business development plan. He said that other acquisitions have preceded it, such as the acquisition of Groupe Conseil Amar Gouin in 2021. Groupe Major acquired this firm because of its specialized insurance offering for foreign visitors, "mainly students," said Major. “Groupe Conseil Amar Gouin's offering for international students was complementary to our Major Plan program for Canadian students."
With 27 years in the industry, Major entered the student insurance market 15 years ago, "primarily with regards to health and dental plans, telemedicine and mental health, legal and financial assistance programs.”
Tech appeal
Group Major and BCI specialize in employer groups. Major Group defines itself as a consolidator, said Major. "We aim to integrate quickly, gain vision and seek synergies. We have a plan that respects the capabilities of our team. We have made several smaller acquisitions in recent years. Especially since the beginning of COVID-19, we have acquired several blocks of clients belonging to generalist brokers for whom it was becoming complex to specialize," he said.
Major Group said it is banking on its digital tools to attract this type of seller. "Our one-stop third-party administrator (TPA) and payor (TPP) solution is appealing to sellers and clients," said Major, who entered the TPP business in 2012 and faced two challenging years following the decision. "We made the decision several years ago to invest heavily in technology. We didn't want to be tenants of our technology. We created Fintech Major, headed by Marc Giguère. Major FinTech is exclusively at the service of the Major Group entities," he said.
He added that Major Group and Major Plan are continuing to grow by purchasing other operating units that specialize in their respective markets. "By investing in technology and human resources, we have given ourselves the means to achieve our ambitions."
