Brokerages from Nova Scotia and Newfoundland and Labrador have merged to create the largest independent brokerage firm in Atlantic Canada. The merger was facilitated by a helping hand from Quebec.
Cal LeGrow Insurance and Financial Group, based in Newfoundland and Labrador, has announced its merger with MacLeod Lorway Financial Group, headquartered in Nova Scotia. The combined premium volume of the two firms amounts to $130 million. The new firm’s head office is located in St. John’s.
Cal LeGrow was founded in 1984 and operates five offices. The company employs more than 70 people and reports a premium volume of over $66 million. It says that one in four businesses in the province relies on its services for insurance needs. The brokerage also offers group benefits, financial services, and mortgage brokerage services.
For its part, MacLeod Lorway reports a premium volume of $63 million. The company has nine branches and employs approximately 80 people. The brokerage is active in personal and home insurance, as well as in certain specialized segments of commercial insurance.
Business operations to continue
In a joint press release issued on Jan. 8, both companies confirmed that their business operations and existing branches will remain in place.
Jeff LeGrow, president of Cal LeGrow, will become CEO of the new company. “This merger earns us an even bigger seat at the table with insurance carriers, which means we can deliver even better solutions to our clients throughout Atlantic Canada,” he says.
Stuart MacLeod, president of MacLeod Lorway, will remain a partner and a member of the executive committee of the new company. He will continue to operate out of the Sydney office. The two men have known each other for more than 30 years.
“We have a shared belief in remaining fiercely independent. This model gives us the combination of people, talent, and scale that will allow us to grow significantly within Atlantic Canada,” MacLeod emphasizes.
Minority stake
Details of the transaction enabling the merger have not been disclosed. Synex Business Performance, a major group of independent brokerage firms based in Quebec, holds a minority stake in the new company.
Contacted by Insurance Portal, Synex CEO, Yan Charbonneau, confirmed his company’s involvement in the creation of the new independent brokerage firm. “This is a minority investment for us, aimed at supporting the new company in its future projects,” he stated via email.
Synex has already been active in Atlantic Canada for four years. In March 2021, Synex acquired 50 per cent of the shares of GoToInsure (GTI). The other half was acquired by Jeff LeGrow at that time.
A year later, GTI announced the acquisition of Hope Grant Insurance, a brokerage based in New Brunswick. GTI continues to operate 18 branches in New Brunswick and Nova Scotia.
Established brands
Reached by Insurance Portal, Jeff LeGrow confirmed that both firms will continue to operate under their respective names. “Our two brands are very well-known in their respective markets. There was no need to create a new brand,” he says.
The merger will allow MacLeod Lorway to expand into the Halifax-Dartmouth region, he adds. The GoToInsure banner also operates two brokerages in Nova Scotia. “There’s plenty of room in the market,” LeGrow notes, emphasizing that his involvement with GTI is personal and unrelated to Cal LeGrow.
The minority stake held by the Quebec-based partner is not mentioned in the press release announcing the merger. “We wanted to avoid creating confusion. The brokerages involved in the merger will continue to operate under their existing names,” he explains. LeGrow says he is very pleased with the business relationship established with Synex.
