The notable mergers and acquisitions of 2024

The vertical integration strategy pursued by Intact Financial Corporation in 2024 continues to make waves. The insurance company, which owns one of Canada’s largest broker networks as well as On Side Restoration, has acquired other businesses linked to its claims operations.

The most recent investment was announced on Nov. 14, when Intact purchased Jiffy, an app that connects consumers with home repair service providers. Two months earlier, Intact acquired a financial stake in Groupe AutoSculpt, which operates four auto body repair shops in the Montreal area. This investment took place earlier in the spring.

Several other insurers carried out transactions over the past 12 months. Notably, Desjardins General Insurance Group (DGIG) announced on March 27, 2024, that it had acquired all outstanding shares of the Insurance Company of Prince Edward Island (ICPEI). Desjardins had initially become a minority shareholder in the P&C insurer in the spring of 2023.

DGIG President Valérie Lavoie told Insurance Portal that the timing was right to move forward with the acquisition of ICPEI.

Other companies 

Other insurers also made merger, acquisition, or investment announcements throughout 2024.

In February, Co-operators acquired Carson Dunlop & Associates, a consulting engineering firm specializing in property inspections.

In March, Swiss Re announced it was increasing its stake in Definity Financial Corporation, one of Canada’s leading property and casualty insurers. The reinsurer now owns nearly 10 per cent of outstanding shares.

In April, iA Financial Group announced it had purchased assets from Laurentian Bank Securities’ full-service retail brokerage division. Three months later, iA acquired a block of 115,000 policies in the United States from a subsidiary of Arizona-based Prosperity Life Group.

In July, AIG took further steps to restructure its operations by selling its travel insurance portfolio to the Zurich Insurance Group.

Life and health insurance  

The life and health insurance sector, for both individual and group products, also saw notable transactions in 2024.

In February, it was announced that insurance advisors from the IDC Worldsource network in Quebec could now offer Desjardins’ life and health insurance products to their clients. These products were already available to other Desjardins agents across Canada.

In April, OM Financial acquired MILIFE Insurance & Investment, a managing general agent (MGA) with approximately 400 advisors across several provinces.

In May 2024, mutual fund broker Co-operators Financial Investment Services, launched in the fall of 2020 by Co-operators, acquired Roger Ghent Financial Services.

In August, Groupe Financier Signature signed a deal with group benefits broker Sentinel Financial Management, aimed at the distribution of mutual funds and exempt market products in Quebec. 

In September, Groupe Cloutier announced that insurer Beneva had taken a minority stake in the firm. The MGA plans to use the investment to expand its already sizable network, which includes approximately 1,000 independent advisors.

Group benefits  

In March, Novacap Financial Services announced the sale of its majority stake in AGA Benefits Solutions to American private equity firm TA Associates.

Also in March, it was revealed that insurer People Corporation had quietly acquired Nexim Canada, a group insurance firm based in Laval. In June, People Corporation strengthened its presence in the student insurance segment by acquiring Plan Major, a group insurance firm, though the transaction was not disclosed until the fall.

Consolidators  

National and international firms continued to make acquisitions in 2023 to consolidate property and casualty brokerage, group benefits, and financial services networks.

HUB International, headquartered in Chicago, also completed several acquisitions in Canada in 2024. Following a February transaction in Ontario targeting brokerage Mitchell Sandham, Hub acquired Zavitz Insurance and Wealth in March. Acquisitions resumed in late summer when Hub announced its purchase of Felton & Associates Insurance, a brokerage based in Brossard. In November, Hub expanded its agricultural insurance activities by acquiring two companies under the Parametric Ag umbrella.

Meanwhile, BrokerLink, a subsidiary of Intact Financial Corporation, pursued acquisitions throughout 2024, completing 17 transactions. On December 17, the company announced the acquisitions of four brokerages, three in Ontario and one in Alberta. The previous announcement made at the end of October involved three acquisitions in Alberta and Ontario. BrokerLink’s largest-ever transaction in Ontario was announced in June, when it acquired The Standard Insurance Brokers. Since the firm also operates in Manitoba and Saskatchewan, the deal marked BrokerLink’s first entry into those two provinces.

The other most active Canadian firm in consolidating distribution networks, Navacord, completed its 11th domestic transaction of the year by acquiring Vita Assure, a Quebec-based firm specializing in group benefits and retirement plans. In 2024, Navacord also completed transactions in British Columbia, including in group benefits in July and in specialized marine insurance brokerage in May. In April, Navacord acquired SecuriGlobe, a Montreal-based brokerage specializing in travel insurance.

In December, Arthur J. Gallagher completed an acquisition in Ontario.

At the end of July, Applied Systems acquired Planck, a company specializing in artificial intelligence for commercial insurance.

Brokerage in Quebec 

Several transactions have taken place among the firms listed in the Ranking of Leaders in Property and Casualty Insurance Distribution in Quebec, published twice a year on Portail de l’assurance.

At the beginning of 2024, Assurances 3G announced the acquisition of Groupe LCD Assurances in Mirabel. An interview with the buyers highlighted that this firm was among the 11 brokerages that had reached an agreement to purchase the personal insurance portfolio previously with Wawanesa in 2018.

Ellipse Assurance was born from the merger of PMT Roy Assurances et services financiers and PMA Assurances. This merger was announced in December 2023. In an interview published at the start of 2024, the respective presidents of the two firms, André Roy and Patrice Jean, explained the reasons behind the transaction. Ellipse Assurance now ranks third in the Ranking.

Also in January 2024, Prima Assurances announced the acquisition of two brokerages, one based in the Laurentians and the other in Montreal, enabling the firm to surpass $50 million (M$) in premium volume.

In January 2024, it was also revealed that Synex Assurance, through Invessa and Synex Performance d’affaires, had completed an acquisition. The team at Assurances Paul Senay, founded in 1980, was integrated into other divisions of Synex in Laval.

Another transaction announced in January 2024 involved AccèsConseil and Assurances Bernier et Filles in Quebec city. The owners of this firm decided to focus exclusively on a program tailored to the needs of childcare services. The remainder of its portfolio was purchased by the firm led by Catherine Mainguy.

Covalen, formerly Groupe Ostiguy Gendron, also completed an acquisition that took effect on January 1, 2024, following a transaction with GC Assurances.

In February 2024, Univesta Assurances et services financiers announced three acquisitions: two brokerages in the Laurentians and another in Montreal.

In April, it was revealed that Lemieux Assurances had acquired the agricultural insurance portfolio of Beneva, which was previously operated by Ledor Assurances.

In July 2024, Groupe DPJL announced the acquisition of Boomerang Assurances, based in Saint-Lazare-de-Vaudreuil, bringing its premium volume to $100M.

Also in July 2024, Fort Assurances et Avantages sociaux announced the acquisition of Bernard & Fabien Assurances, a brokerage based in Montreal specializing in commercial insurance. The transaction was financed by Fonds de solidarité FTQ, already a partner in Fort Assurances.

When the mid-year update of the Ranking was published on June 30, 2024, in the September edition of the Journal de l’assurance, it was reported that Quebec’s second-largest brokerage, Essor Assurances, was quietly continuing its acquisitions across Quebec.

In November, it was announced that M2 Assurance had partnered with the team from Assurancia Leduc DeCelles Dubuc. These two firms merged with Assurancia Campeau and will operate under a single name to be revealed in 2025.

In December, another brokerage in the Ranking announced its ambition to expand. Consilium Assurance plans to leverage an investment from Novacap Financial Services to make acquisitions outside Quebec.

Last spring, a brokerage that is not yet listed in the Ranking of Leaders in Distribution but will soon be, Assurances Cécyre, announced its expansion in the Montérégie region. Two acquisitions negotiated during 2023 allowed it to double in size.