August 6, 2019 by Jason Contant
Large brokerage Lussier Dale Parizeau (LDP) is continuing its goal of becoming a “one-stop shop” for all of its clients needs with the acquisition of a brokerage that offers an online insurance comparison platform.
LDP president and chairman of the board of directors, André Lussier, and Martin Bailey, president of life insurance brokerage Karma Insurance, announced the merger Monday. Karma has offices in Montreal and Quebec City.
“This new acquisition reaffirms our commitment to innovation and investment in the development of modern digital systems,” Lussier said in a press release. “The optimized and scalable platform provides a user-friendly and accessible experience by offering our customers a multi-service [offering], market expertise and value-added service.”
Lussier said the merger decision was motivated by the prospect of presenting professional groups and associations with a “reinvented life insurance sales model that will evolve to offer other products to all of our clients.” Likewise, Bailey said Karma’s online comparison platform can offer LDP customers an innovative shopping experience and showcase the large brokerage’s extensive and diversified service offerings.
LDP is Quebec’s largest insurance brokerage, offering property and casualty insurance, as well as solutions in group insurance, pension plans, human resources, occupational health and safety and pay equity for individuals, companies and professional groups and associations. For its part, Karma offers life, disability, critical illness and mortgage insurance.
The acquisition is the latest in a series of M&A activity for LDP. On July 12, the brokerage announced the acquisition of actuarial consulting firm Samson Consulting Group, which provides employee benefits support services to medium and large companies, trade unions and professional associations, among other offerings.
In June, it merged with financial services firm Génius Financial Group, which specializes in group insurance and annuities, financial planning, savings and life insurance. LDP also acquired the assets of Petrela, Murray, LeBlanc Inc. – a brokerage with specialized expertise in construction bonding and site insurance – that month.
In August 2018, LDP acquired Trinome Conseils, a small actuarial firm that operates in Montreal and Quebec City. The firm offers workers compensation and other occupational health and safety solutions, group insurance, pension plans, human resources and pay equity services.
Lussier recently discussed LDP’s acquisition strategies, telling Canadian Underwriter in an interview last month that the brokerage wants to become a “one-stop shop” for all of its clients needs.
“We believe that it is important for our clients to have the concentration of business in one spot,” he said. “One part of our strategy is to equalize our sources of revenue between personal lines, enterprises and life insurance. We are open to acquisitions in damage and life insurance and possibly in new fields of products and services that would be beneficial to our 160,000 clients.”
And while LDP is currently focused on acquisitions in Quebec, that’s not to say it won’t eventually expand into other parts of Canada. “[Sellers] must help us increase and/ore immediately improve the variety of products and services that we offer to our clients, consolidate our presence in certain niches or areas, such as bonds or E&O, or have good human resources that will have a positive impact on our profitability and service to clients,” Lussier said.