Definity Financial Corporation has entered into an agreement to complete an initial minority equity investment in digital managing general agent APOLLO Insurance, as part of a strategic partnership between the two insurance companies.
The initial investment transaction is subject to regulatory approval and expected to close sometime during the second quarter of 2022.
The deal will also see a distribution relationship between Definity's affiliate Definity Insurance Company and APOLLO. According to Definity, the partnership with APOLLO will allow it to expand its existing digital footprint.
Definity is the parent company of Economical Insurance, Sonnet Insurance Company, Petline Insurance Company, and Family Insurance Solutions. The company also maintains its own digital broker platform called Vyne.
APOLLO Insurance serves over 6,000 individual Canadian brokers and more than 150 group partners all across Canada except in Québec. The MGA utilizes an all-digital approach to quote, collect payment, and issue policies through its proprietary platform, APOLLO Exchange.
"Definity is one of Canada's leading digital insurance providers, and this partnership with APOLLO will allow us to extend the opportunities for a simpler insurance experience for both brokers and their customers," said Definity executive vice president of commercial insurance Fabian Richenberger. "We believe that the scalable platform that APOLLO provides, combined with our proven track record in digital innovation and strong underwriting, will help strengthen our commercial distribution capabilities."
"Our partnership with Definity provides us with resources and opportunities to expand our footprint in the small to mid-size business market," commented APOLLO co-founder and CEO Jeff McCann. Definity and APOLLO share a deep commitment to using technology and software to deliver an effortless insurance experience to customers and our retail broker partners."
Shortly after the announcement of Definity's acquisition of minority interest in APOLLO, APOLLO revealed a Series B financing with Definity. The MGA said that the new financing round will help accelerate its online insurance platform.