makes a move in Western Canada; Tung welcomed aboard at CNA
IFC expands in Western Canada
Intact Financial Corporation entered into a definitive agreement with Canadian Western Bank this week to acquire Canadian Direct Insurance Inc. (CDI) for $197 million.
The move extends IFC’s direct-to-consumer operations from coast to coast.
“Growth and innovation are continuing priorities for IFC, which is why I am excited about bringing CDI into the IFC family,” said Louis Gagnon, president service & distribution. “In recent years, the acquisitions of AXA
Canada, Jevco and Metro General have helped us to build one of the broadest product and service offerings and facilitated increased support and innovation for our brokers and their customers. The CDI acquisition presented an opportunity to grow our direct-to-consumer distribution channel.”
The acquisition is expected to be financed exclusively with excess capital and provide accretion of 2 per cent in the near term to net operating income per share. Annual synergies amounting to $10 million after tax are expected from a combination of reinsurance cost reductions, systems-related cost savings and claims efficiencies.
IFC expects to maintain its strong capital position on closing with an estimated MCT above 200 per cent.
“In conjunction with this acquisition,” said Gagnon, “we are rebranding Grey Power to belairdirect to consolidate our brands. Together, these changes will expand and simplify our direct operations while improving our ability to respond to evolving customer expectations.” (continued.)
CDI wrote approximately $140 million in home and auto premiums in 2014, and was the winner of the 2014 Consumer Choice award for Home and Auto Insurance in Vancouver and the surrounding area. The transaction has been approved by the boards of both companies and is expected to close in mid-2015, subject to the receipt of the required regulatory approvals and customary closing conditions.
Tung climbs the ladder at CNA
CNA announced the appointment of John Tung to assistant vice president, technology and professional liability for CNA Canada.
In this role, John is responsible for the strategy and underwriting of professional liability and cyber, with a focus on technology. John will also have oversight of the miscellaneous professional liability product offering.
“We are pleased to have John join the CNA team,” said Michael O'Connor, vice president and chief underwriting officer, Specialty for CNA Canada. “John brings extensive technology, errors and omissions, and commercial general liability underwriting experience to our growing team.”
Tung has more than 20 years of experience to bring to the role, including 15 years of information technology underwriting experience with Creechurch International Underwriters. During that time, he managed the overall risk profile of the information technology errors and omissions and commercial general liability lines of business.