September 30, 2014 by Canadian Underwriter
Two independent insurance brokerages in Canada have joined together to create Navacord Inc., a new national brokerage network.
Jones DesLauriers Insurance Management Inc. (JDIMI) and Lloyd Sadd Insurance Brokers have partnered, along with Fairfax Financial Holdings Ltd., to create the new platform, with Shawn DeSantis in the role of president and CEO and T. Marshall Sadd as executive chairman at Navacord.
“The company will invest in and form a nationwide partnership of entrepreneurial brokers with deep roots in local business communities,” according to a statement from the founding brokerages.
The Navacord partners currently manage about $400 million in premium volume, which makes it one of the largest commercial insurance brokers in Canada, the statement noted.
“Partner firms will benefit from enhanced risk management services, deep sector expertise, strategic capital, and preferred access to carriers, while operating within an entrepreneurial culture focused on industry-leading growth, sales management best practices, acquisition and administrative support,” according to the statement.
Navacord argues that its business model goes against the trend of broker consolidation that has led to local mid-sized independent firms struggling to compete. Its partners remain majority broker-owned, the statement noted.
“Each broker will maintain their regional focus, but will benefit from a wealth of expertise, innovation, buying power, and enhanced talent management that will help keep them in the game,” it said.
“They will also benefit from the financial strength of Fairfax, a proven leader in supporting Canadian business.”