Two Alberta MGAs purchasedBy La rédaction | January 18 2013 09:49PM
Canada’s managing general agency channel has seen two significant acquisition announcements in recent weeks – both in Alberta.
On Dec. 11, Financial Horizons Inc. reported that it had signed letters of intent to purchase Optio Financial Facilitators, an Alberta MGA.
This followed IDC Worldsource Insurance Network Inc.’s announcement on Nov. 30 that it had acquired the MGA business of Calgary-based Strategic Brokerage Services LP. This transaction also includes the business of SBS West LP, located in Langley, British Columbia.
The Optio deal,which was jointly announced by John Hamilton, president and CEO of Financial Horizons and Stuart Broughton, president of Optio, involves the purchase of 100% of the shares of Optio by Financial Horizons Inc. in exchange for cash and shares in Financial Horizons’ parent company, Granite Global Solutions. The transaction is expected to close in the first quarter of 2013.
Once this acquisition is completed, Financial Horizons says it will have more than 6000 advisors, over $4.5 billion in segregated fund assets, and in excess of $300 million of life premium in force. In 2013, Stuart Broughton will be appointed vice president, sales, reporting to Dan Powell, president, Western Canada Division of Financial Horizons.
IDC WIN’s acquisition of SBS is aimed at strengthening its presence in the Prairies and British Columbia. Kelly Smith, formerly vice-president of SBS, has been appointed vice-president of business development for the Prairie Region of IDC WIN.
“This transaction gives us a strong foothold in Alberta, with the ability to grow our business throughout Western Canada. SBS has experienced strong growth over the past 9 years, and we are confident that together we can continue to build one of Canada’s top insurance distributors,” said Paul Brown, chairman and CEO of IDC WIN.
The integration of SBS will add over $400 million of segregated fund assets to IDC WIN and increase new first year insurance premium to in excess of $45 million in 2012, says the company.