March 2, 2006 by Canadian Underwriter
Having received Federal Government approval, AXA Canada recently closed the acquisition of The Citadel, General Assurance Company.
The agreement, entered into with Winterthur Group, involves a consideration of approximately Cdn$310 million.
The new entity will include more than 2,000 employees and a distribution network of 1,400 brokers throughout Canada and AXA Canada says this is in line with its growth strategy. The transaction will also boost the Company’s premium volume to approximately Cdn$1.6 billion and its Property and Casualty market ranking to 6th.
“Now that this phase is completed, we can focus on integrating our teams and our structures to offer a broader range of products and services, bringing us closer to our goal of being the preferred company in our industry,” Jean-Francois Blais, president and CEO of AXA Canada, says.
Following this transaction, AXA Canada says it will keep its regional structure in an effort to continue to better service its brokers and clients and progressively integrate The Citadel’s resources and activities within its subsidiaries AXA Pacific Insurance in the West, AXA Insurance (Canada) in Ontario and the Atlantic Provinces, and AXA Assurances in Qubec.
Building on the dynamism of its expanded team, AXA Canada says it will now continue to grow its expertise in the commercial insurance sector, pursue the diversification of its personal lines portfolio in all Canadian markets, and further develop its Financial Services and Life and Health insurance volume. Finally, with the addition of new brokers, the Company will now benefit from an expanded distribution network.
“The acquisition of Citadel further supports our strategy to become a Canadian leader in Financial Protection,” Blais says. “Our increased critical mass in key markets, especially outside Qubec, will allow us to offer a broader range of value-added products and services to our brokers and clients throughout Canada.”
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