fter helping AGA Group Insurance acquire PPI Benefits earlier this month, the Novacap Financial Services fund is now fuelling GroupAssur’s expansion.
GroupAssur, an MGA specializing in P&C insurance products, has announced the acquisition of Eagle Underwriting, an independent managing agent that mainly insures transportation, trade and moveable property risks. The firm serves clients in Canada and the United States.
Novacap, which has held a majority stake in GroupAssur since 2020, “is pleased to see GroupAssur act on its objectives to enhance its offering and expand its footprint beyond Canadian borders,” the press release confirming the transaction states.
This transaction marks a significant milestone according to GroupAssur president, Jean-François Raymond. “Our goal has been to build the best MGA platform in Canada. With the onboarding of Eagle's expertise, we will be going beyond the objectives we have set for ourselves, opening a door into the US market and moving forward into our next phase of growth,” he says.
Founded in 1993, GroupAssur underwrites complex insurance policies on behalf of Canadian and international carriers and Lloyd's of London syndicates. Headquartered in Montreal, it has offices in Quebec City, Terrebonne and Brossard, Quebec, and in Markham, Ontario.
Complementary lines
Marcel Larochelle, managing partner of Novacap Financial Services, informed Insurance Portal of the transaction in early October. However, the news was under embargo until the press release was published on Oct. 26.
In fact, the transaction closed on Oct. 1. “Eagle Underwriting is a similar type of business, an MGA that serves as an intermediary between brokers and businesses that need insurance," Larochelle explains.
“These companies are authorized to underwrite insurance coverages that are ultimately supported by insurers, and they entrust GroupAssur with that underwriting function,” he adds.
“This is an interesting acquisition for GroupAssur as we expand into Ontario. The Eagle acquisition brings new lines of business, because both cases involve very specialized coverage. Every time we look for an additional partner, we find additional revenues and clients, but above all, new expertise in complementary lines of business. Eagle is a good addition for GroupAssur in this context,” Larochelle says.
Founded in 1981, Novacap has made private equity investments in more than 100 companies and completed over 150 add-on acquisitions. Its assets under management exceed $8 billion.
At Eagle
Eagle Underwriting was founded in 1996. It underwrites insurance policies for the transportation of goods in the United States, by sea or air.
Eagle Underwriting will retain its existing brand name and structure. Current management and shareholders will remain in place, under the leadership of Bernie Cisseck, Chairman of the Ontario-based MGA.
