Hub International Limited announced Tuesday it has signed a purchase agreement to acquire the Aviva Canada subsidiary that provides new home warranty in British Columbia and Alberta.
The terms of the acquisition of National Home Warranty Group Inc. were not disclosed.
“Our investment in National Home Warranty rounds out Hub’s capabilities in Western Canada to offer a more complete and comprehensive solution to make builders stronger and help homeowners better protect their assets,” David Moon, president of Hub International Canada West, said Tuesday in a press release. “Their builders and clients will have access to an additional layer of risk management, specialties, resources and services with Hub.”
With offices in Edmonton and Calgary, and Vancouver and Langley, B.C., National Home Warranty is one of Western Canada’s largest home warranty providers. Hub reports that National Home Warranty partners with more than 3,500 registered builders to provide new warranty coverage to 15,000 homes and homeowners every year.
According to National Home Warranty’s LinkedIn page, the Aviva Canada subsidiary has about 45% of the new home warranty market in B.C. and approximately 65% of the market in Manitoba. In Alberta, National Home Warranty serves approximately 25% of the market for new home and condo warranties. In total, it serves nearly 3 million customers.
Following the acquisition, the National Home Warranty team will join Hub Canada West.
Buying home insurance is not mandatory in Canada, but most banks and mortgage lenders will require home buyers to show proof of home insurance before advancing the mortgage.
One Western Canadian-based P&C digital brokerage recently partnered with mortgage technology company Filogix to allow mortgage brokers to initiate a home insurance quote alongside any mortgage application. The partnership between Magrath, Alta.-based Surex and Filogix will allow brokers to receive access to 10+ offers from Canadian insurance carriers, all within the Filogix Expert platform, said a press release earlier this month from Finastra (Filogix is a Finastra company).
“We are always trying to make the insurance buying process easier,” said Lance Miller, CEO and co-founder of Surex. “Now, with this partnership, Canadians can take the — sometimes complicated — process of obtaining a mortgage, together with home insurance, and have it all done seamlessly in the same transaction.”