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Meloche Monnex buys Liberty Mutual personal lines book


January 21, 2004   by Canadian Underwriter


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TD Bank’s insurance arm has purchased the Canadian personal lines book of Liberty Mutual, a subsidiary of Boston-based Liberty Group. Meloche Monnex, which sells personal home and auto insurance as TD Insurance Home and Auto and under its own name, will become the largest direct writer of p&c insurance in Canada, and join the top four overall in personal lines.
Liberty Mutual’s personal lines book stood at $390 million in written premiums last year, with 350,000 – Meloche Monnex will now write $1.4 billion in annual premiums on 1.3 million policyholders.
The acquisition will also significantly add to Meloche Monnex’s affinity business, adding 25 new university alumni/professional organizations, and 400 employer groups or other associations.
The nearly 800 staff members of Liberty will remain, bringing Meloche Monnex’s personnel up to 2,700.
“This acquisition will solidify Meloche Monnex’s position as an insurance leader through the addition of a broad-based clientele while strengthening our employer group market share,” says Meloche Monnex president and CEO Alain Thibeault.
Paul Condrin, Liberty Mutual Group executive vice president, says the company will retain its Canadian commercial lines business through Liberty International Underwriters, but is focusing its personal lines energies on the U.S. market. “Liberty Mutual’s North American personal lines p&c growth strategy is primarily focused on our U.S. operations, where we have the scale to operate most efficiently for our customers something we do not have to adequately address the complexity of the Canadian insurance market.”
Subject to regulatory approval, the sale is expected to close in April.


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