Since Definity Financial Corporation became a majority shareholder in 2022, McDougall Insurance has transformed from a strong regional player into one of Canada's most active insurance brokerage consolidators.
Just weeks after announcing the merger of Cornell Insurance and Etobicoke-based Active Insurance, McDougall is preparing to unveil three more acquisitions, continuing the aggressive pace it set in 2023 and 2024.
Lorne McDougall (pictured), the third-generation leader at the family business, describes their expansion strategy as a “Goldilocks” approach.
“We’re not too hot, not too cold,” he told Insurance Business. “Not too corporate, not too small. Our goal is to be the ‘just right’ partner.”
The McDougall Insurance story starts in post-war Belleville, Ontario, where Lorne’s grandfather, also named Lorne McDougall, founded the firm in 1946 with a simple philosophy: relationships matter.
“We’re a small-town business at heart,” the younger Lorne said. “We believe in community and being physically present in the places we serve.”
After steady regional expansion under the second generation, current CEO Ross McDougall, the firm hit a strategic crossroads in the early 2020s. With over $450 million in gross written premium (GWP), McDougall Insurance was too large to remain a nimble boutique yet too small to compete with industry giants.
Rather than sell out or compromise their model, McDougall Insurance found a strategic partner in Definity, which offered the capital and scale the brokerage needed but allowed it to maintain autonomy – a “non-negotiable” element, according to Lorne.
“Definity understood our long-term vision,” Lorne said. “They provided the backing, but we retained full operational control.”
The results of that partnership were immediate and dramatic. In 2023, McDougall doubled its size to over $1 billion in GWP, thanks to major acquisitions like McFarlan Rowlands in southwestern Ontario and Drayden Insurance in Alberta.
Nine more deals followed in 2024, pushing McDougall’s GWP to $1.2 billion and expanding its reach across Ontario and Alberta.
But Lorne is quick to clarify: this is not a volume game.
“We turn down far more deals than we pursue,” he said. “We’re not buying books of business. We’re building a mosaic of culturally aligned, community-driven brokerages. We want principals to stay on, roll equity, and help shape our future.”
This commitment was on display in McDougall’s latest merger between Cornell Insurance and Active Insurance. The deal strengthens the brokerage’s presence in the Greater Toronto Area and is rooted in long-standing relationships. Active’s president, Mark Palazzese, is staying on post-merger, a hallmark of McDougall integrations.
While McDougall Insurance is expanding across Canada – it now has a footprint in Ontario and Alberta and is eyeing Atlantic Canada, the Prairies, and the West Coast – its acquisition strategy isn’t led by location or product mix.
“We’re open to personal lines, commercial lines, financial services—you name it. But we only pursue deals where the cultural fit is clear,” Lorne said.
That philosophy has allowed McDougall Insurance to maintain local leadership and brand equity across its acquisitions. In many cases, the acquired firms retain their original names, which Lorne said allowed the group to leverage the trust these firms have built in their communities.
“A successful integration means the client barely notices a change, except that things get better,” he said. “More options, better pricing, same local broker. And for staff, the transition should feel seamless.”
Lorne also elaborated on McDougall’s ideal partners: “We're looking for brokers who are deeply embedded in their communities, who care about their staff and their clients, and who want to remain true to their values while gaining the advantages of scale.
“These brokers often face the same challenges we did: limited access to markets, difficulty investing in tech, and pricing disadvantages. We offer them support, but without requiring them to sacrifice their identity.”
With more deals on the horizon and a clear vision for the future, McDougall Insurance isn’t slowing down.
“We closed nine deals in 2024, and we expect a similar volume in 2025. We’re in deep discussions with a number of brokerages across various regions and of all different types,” said Lorne.
“We truly believe in the importance of scale in our industry, and as long as we continue finding culturally aligned, values-driven brokerages, we’ll keep pursuing opportunities.”
