Canada’s
Intact Financial Corporation announced that it has entered into a definitive agreement to acquire US specialty insurer One Beacon Insurance Group.
The all-cash acquisition will cost Intact $1.7 billion. The acquisition and related costs will be funded through a combination of equity financing, excess capital and approximately $1.0 billion of financing comprised of bank term loans, medium term notes and preferred shares.
The deal is expected to create an expanded presence for both firms in the specialty insurance space, with anticipated revenues amounting to $2 billion, according an Intact statement published by news service MarketWired.
The combined capabilities of the two firms is expected to boost Intact’s Canadian market presence through opportunities to offer new products as well as enhanced cross border capabilities. This will boost the insurer’s competitiveness in the international marketplace.
The deal is likewise expected to provide additional growth avenues that will leverage the company’s expertise in consolidation to address fragmentation issues in the specialty market, the statement added.
Intact anticipates overall top and bottom line growth through the resulting geographic expansion and product diversification from the deal.
Join more than six hundred insurance companies and brokers who have grown revenue and reduced costs. Download our free white paper to learn how Docusign can help you improve your customer experience.
“Today, we’ve taken an important step in building a world class P&C insurer. The addition of OneBeacon is creating a leading North American specialty lines insurer focused on small to mid-sized businesses,” said Charles Brindamour, CEO of Intact Financial Corporation.
“OneBeacon is a strong strategic fit for Intact, with deep expertise in commercial and specialty lines, and shared values. We see significant growth potential from the combination of our specialty lines operations and we look forward to welcoming OneBeacon employees to the Intact family,” he added
Goldman Sachs will serve as financial adviser to the deal.
Related stories:
Concord appoints M&A expert
Hub International acquires assets of Canadian insurance marketing organization
.jpg)
