Canadian Broker Network and Intact Financial Corp. announced Wednesday that they have reached an agreement whereby CBN will acquire Intact affiliate South Western Insurance Group Ltd., a wholesale insurance intermediary that provides brokerages with specialty and niche insurance markets.
Terms of the transaction, which is expected to close by the end of the year, were not disclosed.
The acquisition marks CBN's expansion into the wholesale insurance market and complements its existing activities, according to a company statement.
Its ownership will provide South Western with the ability to expand its relationships with insurance companies which will greatly benefit South Western's brokers, the statement noted.
"This acquisition is a tremendous opportunity as it allows us to enter an important segment of the brokerage industry," Daryn McLean, chair of Canadian Broker Network noted in the press statement.
"With more than 50 years supporting brokers, South Western's growth potential is significant thanks to its strong industry relationships, experienced professionals and unique underwriting expertise in niche and specialty insurance products."
"We are pleased to have found in CBN the perfect organization to help South Western realize its growth potential," said Louis Gagnon, president and CEO of Intact added in the news release. "Under the strategic direction of CBN, South Western will be well-positioned to better serve the needs of insurance brokers across the country."
Upon closing, South Western will operate as an independent subsidiary of CBN with its own leadership team, name and brand. "At South Western, brokers can always count on an impressive team of committed and talented employees," Mack Rooney, president of South Western Group said in a news release.
"Moving forward, the current team will play an even greater role in strengthening our industry relationships and expanding our activities."