April 28, 2021 by Greg Meckbach
Intact Financial Corp. is changing the brand name of Frank Cowan Company, the managing general agent it acquired in 2019 from Princeton Holdings. The MGA will be known as Intact Public Entities Inc.
“The MGA distribution channel presents a strategic opportunity for Intact to deliver on its promise to build a leading North American specialty insurer,” stated Pete Weightman, senior vice president and chief underwriting officer, specialty solutions, North America for Intact, in a press release on April 28. “The rebrand of Intact Public Entities represents progress in achieving this goal.”
In 2019, Cambridge, Ont.-based Princeton sold both Frank Cowan Company and The Guarantee Company of North America to Intact for $ 1 billion. Princeton kept its retail brokerage, Cowan Insurance Group.
Intact Public Entities is now located at a new head office location in Cambridge. The MGA provides risk and claims management services to municipal, public administration and community service organizations across Canada.
“We are really scaling up our specialty lines capability here in North America,” Intact CEO Charles Brindamour said March 24 during National Bank Financial Markets 19th Annual Financial Services Conference. The context of Brindamour’s comment, at the National Bank Financial online event, was Intact’s agreement with Tryg A/S to acquire RSA.
With the rebranding of Frank Cowan to Intact Public Entities, clients and brokers will continue to work with the same team, Intact said in its announcement.
With its acquisition of The Guarantee and the 2017 acquisition of Minnesota-based OneBeacon, Intact’s specialty lines division is “now a really meaningful business,” Brindamour said during a fireside chat in 2020 with Barclays’ financial services analyst John Aiken.
“With Frank Cowan Company, we acquire an MGA platform to manufacture and distribute specialty insurance products in Canada which comes with a stable stream of distribution earnings. Frank Cowan also expands our presence into the public entity space in Canada,” Brindamour said in late 2019 during an earnings call.
With its 2019 acquisition of The Guarantee, Intact strengthened its position in both the surety and high-net-worth personal lines markets.
OneBeacon Insurance Group Ltd., which Intact bought for US$1.7 billion in 2017, is now known as Intact Insurance Group USA LLC. OneBeacon’s specialty offerings include technology, marine, public entities, and entertainment.
Meanwhile, the proposed RSA deal, valued at more than CAD$12 billion, is expected to close in 2021. If approved, Intact would form a consortium with Danish insurer Tryg A/S to acquire RSA. Intact is expected to acquire RSA’s operations in Canada, Britain, Ireland and the Middle East while Tryg would acquire RSA’s operations in Norway and Sweden. In Denmark, RSA’s operation would be co-owned by Intact and Tryg.
The deal has been approved by RSA shareholders and Canada’s competition bureau.
Feature image via iStock.com/benedek