Canada’s Desjardins Acquires Insurance Company of Prince Edward Island

Canada-based Desjardins, through its subsidiary Desjardins General Insurance Group Inc., and ICPEI Holdings Inc. announced they have entered into definitive agreements for Desjardins to indirectly acquire all of ICPEI’s issued and outstanding shares.

ICPEI Holdings operates The Insurance Company of Prince Edward Island (ICPEI) as a wholly owned subsidiary. This move will allow Desjardins to add ICPEI’s home, auto and commercial insurance activities to its operations. Desjardins has exercised its call option to acquire these shares ahead of the original plan.

Financial details of the deal were not disclosed.

Subject to regulatory authority approvals and other customary closing conditions, this acquisition will enable the organization to diversify its insurance offer and better meet the needs of small and medium-sized businesses in Canada. Given the solid expertise within ICPEI and its network of brokers, the company is an ideal partner to help Desjardins serve these clients more effectively.

“With this acquisition, we’re strengthening Desjardins’ position in the Canadian commercial insurance market. We’re committed to meet the changing needs of our business members and clients across Canada, and be proactive in our support,” commented Guy Cormier, president and CEO of Lévis, Quebec-based Desjardins.

“That’s why we’re 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,” he added. “With this additional expertise, I firmly believe that we’ll be able to perform even better with businesses, reinforcing our position as a key player in this segment of the Canadian market.”

Commercial insurance products will be offered through insurance brokers who work with ICPEI, as a complement to Desjardins Group’s direct channel and network of exclusive agents. Desjardins’ financial strength will bolster ICPEI’s development and growth.

“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,” according to Serge Lavoie, president and CEO of ICPEI. “Desjardins is a strong financial leader, and this partnership will accelerate our growth to become a major player in insurance distribution with brokers.”

When Desjardins acquired a minority interest of ICPEI in February 2023, Desjardins General Insurance Group Inc. announced its interest in acquiring ICPEI over a three-to-five year horizon. The organization then decided to expedite this process, based on market conditions, opportunities and ICPEI’s progress on the commitments it had made to strengthen their partnership. This acquisition aligns with Desjardins’ ambitions to grow and be proactive in key sectors.

In addition to this partnership with ICPEI, Desjardins Group also recently acquired the life and health insurance and individual savings distribution activities of Guardian Capital Group Ltd. These acquisitions are clear examples of the organization’s drive to grow across Canada, particularly in the areas of property and casualty insurance, life and health insurance, and wealth management.

About Desjardins Group and ICPEI Holdings Inc.

Desjardins Group is the largest cooperative financial group in North America and the fifth largest in the world, with assets of C$422.9 billion as of Dec. 31, 2023. Desjardins offers a full range of products and services to individuals and businesses through its extensive distribution network, its online platforms, and its subsidiaries across Canada.

Founded in 1998, ICPEI Holdings Inc. operates in the Canadian property/casualty insurance industry through its wholly owned subsidiary, the Insurance Company of Prince Edward Island (ICPEI). ICPEI provides commercial and personal lines of insurance exclusively through the broker channel.

Source: Desjardins Group

Topics Mergers & Acquisitions Carriers Canada