Collectivfide Insurance Group Inc. announced Oct. 1 it has acquired a majority stake in Brockville, Ont.-based brokerage W.C. Burgess Insurance Services Ltd.
Formed in 2019, Cambridge, Ont.-based Collectivfide’s shareholders represent mutual insurance companies in Ontario and across Canada.
Originally founded in 1988 as Brayton Insurance Services Ltd., W.C. Burgess was acquired in 2014 by Greg Foan and Max Patterson.
The deal announced Oct. 1 marks Collectivfide’s fifth transaction.
“In this market of accelerated consolidation – we must do everything that we can to strengthen the mutuals’ presence and continue to build on our very solid foundation,” wrote Collectivfide board chairwoman Marg Torrance in Collectivfide’s 2020 annual report. “Many of us, as small local insurers, have seen the takeover of our independent brokers by large consolidators and international private equity firms. Our strategy with Collectivfide provides us with not only a defense, but an additional source of growth and revenue for the mutual shareholders from this very profitable sector.”
Collectivfide’s other brokerage partners include Alliston, Ont.-based Doner Horsley Insurance Brokers Ltd., Ayr, Ont.-based dbi Brokers Ltd., and Owen Sound, Ont.-based TG Group Inc.
W.C. Burgess places personal property, farm, auto and commercial insurance. The brokerage expanded to include financial products in 2002.
Collectivfide said in its 2020 annual report that its business model allows for the daily operation of each Collectivfide brokerage to be managed by a partner or manager.
“Each partner or manager will have authority and discretion to make decisions to best grow and protect the business. Collectivfide’s role is to provide ‘back office’ expertise and support to allow the brokerages to focus on growing and serving their clients.”
Collectivfide said as it expands its own team, the supporting activities to its brokerages will include financial, underwriting, human resources, data analytics & technology, and marketing.