Royal & SunAlliance Insurance Company of Canada has struck a strategic alliance with the Toronto-based broker network, CG&B Group.
“We believe that in order for the CG&B Group to maintain our position as a profitable, growing and innovative firm we must expand through acquisitions,” says Rod Finlayson, CG&B senior vice president. “The investment will allow the CG&B Group to explore new opportunities and to further grow our business in the Canadian marketplace. We will continue to be a broker in every sense of the word, operating autonomously and representing numerous insurers.”
Both CG&B and Royal & SunAlliance would not elaborate on the alliance but CG&B’s Finlayson did note the transaction could fuel a series of acquisitions for the company. One market observer suggests the rising tally of insurer/broker alliances could have compelled Royal & SunAlliance to enter the field. He adds that other top insurers will soon follow suit. “I would not be surprised to see other top ten insurance companies joining the strategic alliance trend very soon. In the age of brokers reducing their markets, no insurer wants to be left out,” he says.