Desjardins General Insurance Group, a subsidiary of Canada’s Desjardins, has signed a definitive deal to buy the remaining stake in the Insurance Company of Prince Edward Island (ICPEI).
This acquisition covers ICPEI’s home, auto and commercial insurance activities, which will now become part of its operations.
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Initially, Desjardins acquired a minority stake in ICPEI in February 2023. At the time, the insurer planned to gradually take over ICPEI within a three-to-five-year time frame.
However, Desjardins executed its call option to acquire ICPEI shares ahead of schedule due to favourable market conditions and the progress ICPEI has made in fulfilling its commitments to strengthen their partnership.
The integration of ICPEI is expected to diversify Desjardins’ insurance offerings and enhance its ability to serve the needs of small and medium-sized businesses across Canada more effectively.
Commercial insurance products will continue to be offered through ICPEI’s insurance brokers, complementing Desjardins’ direct channel and exclusive agent network.
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By GlobalDataFurthermore, Desjardins said its financial position will support ICPEI’s development and growth initiatives.
Desjardins president and CEO Guy Cormier said: “With this acquisition, we are strengthening Desjardins’ position in the Canadian commercial insurance market. We are committed to meet the changing needs of our business members and clients across Canada, and be proactive in our support.
“That is why we are very pleased to be able to count on ICPEI’s expertise in brokerage distribution of commercial insurance to expand our reach and access new markets.”
ICPEI president and CEO Serge Lavoie said: “This acquisition is clearly in line with ICPEI’s strategic goals to expand insurance distribution across the country and pave the way for even greater collaborations on the Canadian market.
“Desjardins is a strong financial leader, and this partnership will accelerate our growth to become a major player in insurance distribution with brokers.”
ICPEI’s acquisition is subject to regulatory approval and other closing conditions.
This acquisition follows Desjardins’ purchase of Guardian Capital Group’s life and health insurance and individual savings distribution activities.
