Three Quebec brokerages form new entity

EssOR Insurance, Pratte Morrissette Inc., and Assuraction Inc. have signed an agreement in principle to create a new insurance brokerage entity called EGR.

The new company, which will specialize in risk management, insurance and surety bonds, will group together insurance brokerage services for medium and large businesses, including specialized lines, according to a joint statement issued this week.

With an estimated premium volume of over $150 million, EGR will rank among the five largest insurance brokers in its niche in Quebec, the release also noted.

Louis Bélanger, currently CEO of Pratte Morrissette, will be the new president of the company. He will be assisted by Richard Drouin in the role of  executive vice president and Simon Marchand-Fortier as vice president of operations. Currently, Drouin is president of Assuraction and Mr. Marchand-Fortier is vice president of Pratte Morrissette.

“To us, this alliance seemed natural, since we all share corporate values and cultures based on talent development, high-quality customer service and the desire to continually improve our processes,” Bélanger commented in the statement. “Together, we’ll be able to offer our clients better representation with insurers, access to new markets and a stronger presence in Quebec.”

“Our complementary areas of expertise and financial health will place us in a favourable market position,” Michel Duval, future chairman of EGR’s board of directors added. “These factors will allow us to pursue our growth strategy in an industry in the midst of consolidation.”  

EGR will have nine offices and will employ more than 150 people, including a team of specialized brokers in “every major economic hub” along the Québec-Montréal axis. The group will include specialized brokers assigned to risk marketing, safety practitioners, legal experts, and adjusters.

“With EGR, we want to stand out from the competition and provide a unique working environment to attract and retain the best talents in the industry,” Drouin also noted. “Our business model will be largely inspired by our past practices, which are based on the personalization of services. We are convinced that we will succeed thanks to our excellent reputations in the industry and our continuing desire to forge real partnerships with our clients and insurers.”

EssOR Insurance will continue its personal lines and small business damage insurance brokerage activities. Michel Duval will remain as president, in addition to chairing EGR’s board. With a premium volume of more than $140 million, EssOR Insurance will have 14 offices across Quebec and nearly 230 employees.

The parties plan to finalize this transaction before the end of 2014. Until then, the operations of each of the companies will remain unchanged.