Australian financial services provider Macquarie Group (Macquarie) has acquired Insurance Pay Canada Inc. (Insurance Pay), a Canadian premium finance company.
Insurance Pay works exclusively with independent brokers to provide insurance premium financing to commercial customers who prefer to pay their premiums over the course of the year.
Headquartered in Toronto, Insurance Pay provides clients with short-term loans to pay their insurance premiums upfront, with loan repayments usually spread out over 10 months.
We are very excited to have the support of Macquarie, a leading global financial services organization, Insurance Pay Canada founder and CEO Stuart Bruce said in a press release.
Since we entered the market a few years ago, we have grown to become one of Canadas largest premium finance companies. Our innovative systems, strong service levels and product range offer an attractive package to independent Canadian brokers.
Under the terms of the acquisition, Insurance Pay will become a wholly-owned subsidiary of Macquarie and continue to operate under the Insurance Pay name. Management will remain the same and staff will become Macquarie employees.
Macquaries head of insurance broking services, Paul Cilia, said the acquisition of Insurance Pay is part of Macquaries global strategy of selectively entering markets where there is a genuine opportunity to add real value.
We believe Insurance Pay is a highly competitive company, with great people and innovative software, he said. We are confident that by providing the necessary finance and resources, Insurance Pay can become the leading premium finance solution for Canadian brokers.
Cilia indicated that Macquarie intends over time to broaden its range of solutions for insurance brokers to include business lending.
The Canadian insurance broking market is starting to undergo consolidation and we believe that a specialist lender providing flexible finance for merger and acquisition will be well received by brokers, he said.