Synex Business Performance has acquired an interest in SFEL Assurances collectives, a brokerage firm that specializes in group insurance for businesses in the Quebec City area. SFEL stands for Services Financiers Éric Levert. In addition to acquiring this equity stake, Synex is partnering with Éric Levert, who will stay on as president of the company.
Located in Quebec City, SFEL Group Insurance has an annual business volume of $28 million in premiums. Levert has been working in the group insurance industry since 1997.
Different kind of transaction
This transaction differs from deals that result in the acquisition of all shares. “Synex acquired a partial holding in the shares of SFEL, so Eric Levert retains a stake in the company. That’s why we call it a partnership,” Levert and Jean-Sébastien Larivière, President of Synex Assurances, told Insurance Portal in a joint message.
According to the Registraire des entreprises du Québec, Synex Group Solutions does not hold a majority interest in SFEL. Synex is listed as the first shareholder and Levert’s company as the second shareholder.
Synex made the first move
Synex approached Levert, Larivière points out. “Synex was looking to buy volume and build up leading-edge expertise, so SFEL it seemed like a good addition to the group. The timing was right for Levert: He had started thinking about continuity and succession,” the Synex president says.
Jean-Sébastien Larivière lauds Éric Levert’s experience and expertise in group business, with both insurers and in the market. “The products and services he offers in group insurance are very broad. He offers every possible group product for small and large companies, regardless of their needs. He has extensive knowledge, particularly in self-insurance and third-party payers,” Larivière points out.
As for the financing package of more than $100 million that BBH Capital Partners provided to acquire stakes in firms, Larivière mentions that there is still capacity to acquire other firms, and that “there are still great projects to come for Synex this year and next.”
