Intact completes acquisition of Jevco Insurance

Intact Financial Corporation today announced the completion of its $530-million acquisition of Jevco Insurance Company, a wholly owned subsidiary of The Westaim Corporation.

The acquisition of JEVCO, a leading provider of specialty and niche insurance products for individuals and businesses in Canada, increases Intact’s direct premiums written by approximately $350 million on a pro forma basis and brings the company’s market share to 17%.

Product offerings have been enhanced to include insurance for recreational vehicles (such as motorcycles, snowmobiles and all-terrain vehicles), as well as commercial, surety and non-standard auto insurance, notes a statement from Intact, the largest provider of property and casualty insurance in Canada.

“The acquisition provides us with another opportunity to reinforce our commitment to the broker channel, enrich our customer value proposition and enhance our competitive position,” Charles Brindamour, CEO of Intact Financial Corporation, notes in a company statement.

Intact reports the transaction is expected to generate an internal rate of return (IRR) of more than 20%, and to increase book value per share by 2.6%.

The company expects to maintain its solid capital position with an estimated Minimum Capital Test ratio above 200% and a debt to total capital ratio below 20%, the statement adds.