Reshuffling of market share anticipated: Intact’s Gagnon

Intact Financial Corporation president Louis Gagnon repeated his prediction that about 25% of the existing property and casualty insurance market share will change hands in the next five to 10 years.

“There will be a reshuffle of a quarter of the market share. So we believe that there’s still, definitely, some possibility in Canada to do some interesting things,” Gagnon told attendees today in a presentation as part of the Insurance Institute of Canada’s At the Forefront Series.

Intact has adopted what Gagnon characterizes as a disciplined approach, not wanting to upset the market. Responding to a question about whether or not Intact has any concerns it is nearing the maximum allowable limit on market share, he said “there are restrictions or limits that I think we will be told without us asking that we not go over.” It is not the company’s “intention to control the market.”

Intact announced this month an agreement to buy JEVCO Insurance Company, a provider of specialty and niche products for individuals and businesses in Canada, for $530 million. In 2011, Intact acquired AXA Canada – which offered home, auto, business and life insurance through a network of 1,300 brokerages and 2,700 insurance advisors – for $2.6 billion.

Since acquiring AXA, Intact has been working to integrate the business into its systems. Claims processing began last November and Gagnon said he was encouraged the company is now more than halfway through the process.

“When you look back, you say, ‘Wow, that was $2 billion of volume that is changing systems,’” he added.

With the acquisition of AXA, Gagnon said Intact has created a very solid organization. “We have now, I would say, a suite of products that is difficult to replicate,” he suggested. “And that was the objective.”