With the adoption of two private bills, the National Assembly of Quebec has given the green light to the merger of La Capitale Insurance and Financial Services and SSQ Insurance.
Announced in January, the merger would create the largest mutual insurer in Canada. The new company is expected to come into existence on July 1. Before this happens, the authorizations of Quebec regulator, the Autorité des marchés financiers (AMF) and the Minister of Finance must be obtained.
The companies say “work underway with these two organizations is on track.” They obtained the approval of their mutualists last March.
“Both entities are forging ahead with efforts to join forces and build a new company with nationwide reach and a head office that will remain in Quebec City for the long term. The name of the new company will be announced in the next few months,” stated the companies in a joint announcement June 3.
Combined assets under management for the new company will total more than $20 billion, and consolidated premiums will be worth $5 billion.
"It's a big day for La Capitale and SSQ Insurance. We have everything we need to create an influential and trusted player in Canada's insurance landscape. By pooling our talents, expertise, and mutualist values, we are stronger together. For our new company, the future looks bright," stated Jean-François Chalifoux, CEO of SSQ Insurance.
"Our merger of equals will become official on July 1st, and we couldn't be happier. I'd like to thank the employees and board members who have made it possible to reach this historic milestone and create the biggest insurance mutual company in Canada. I am also very grateful to the members of the National Assembly of Quebec for working with us. This is the beginning of an exciting journey and it's all happening right here, in Quebec City," stated Jean St-Gelais, Chair of the Board of Directors and Chief Executive, La Capitale.
Once the new company is created, Jean St-Gelais will serve as Chair of the Board of Directors and Jean-François Chalifoux as CEO.
