Canadian Underwriter

Category: M&A

Definity’s strategy for integrating new business lines

Pricing is important, and it’s among the issues facing Definity Financial Corporation as it aligns the expense and loss ratio sides of the recently acquired Travelers Canada business with its own operations.

Those alignment opportunities vary by line of business, Rowan Saunders, Definity’s president and CEO tells a May 8 earnings call in response to an analyst’s questions.

On the commercial side, both Saunders and Obaid Rahman, Definity’s executive vice president for Commercial Insurance say, that market is divided between large account segments where competition has intensified, and smaller accounts.

“We’ve mentioned in a couple of quarters, that the market is bifurcated where competition is most intense in the large account segment,” Rahman tells the call. “Over 80% of our business is not in that segment. When we look at the renewal book that we have, we have strong retention, and we’re still getting strong rate on the majority of that book. We don’t really have any concern with how the renewal portfolio is performing, the margin it’s holding, no concerns there.”

Commercial approach

As for new business within commercial segments, underwriting discipline is pushing a shift in the portfolio mix to ensure Definity is writing more smaller accounts than larger accounts.

“What that’s doing is, it’s having an impact on the overall growth, premium growth percentage by about a couple of points, but we are gaining market share, maintaining our margin and we’re continuing to grow the customer base…,” Rahman tells the call. “We’ve talked about how well the Travelers’ integration is going. We expect that retention of that book to continue to strengthen as we move forward. We’re already very close to where the Definity retention is.”

Related: Definity Q1 earnings show Travelers integration producing results

With Q1 behind them, the company is onboarding new underwriters as part of the transition.

“The first wave of production underwriters from the Travelers side got deployed towards the end of Q1. The second wave is coming in Q2,” he says. “What we see is that extra capacity that will come on board, as well as the new products and capabilities that will keep on rolling through the year. That will give us a boost in growth.”

Meanwhile, the digital platforms on the small business side will help the company gain share on the specialty market side.

“We’re managing the cycle with a lot of discipline in terms of preserving margin. Our small business specialty, as well as the Travelers capabilities com[ing] on board, will continue to give us market outperformance and be sort of in that mid-single-digit range as we go through the year,” Rahman tells the call.

Overall, for commercial lines, and for personal lines home insurance, “there are not any material segments or portfolios that don’t fit our appetite or need significant actions,” Saunders says.

Personal auto probably had the most loss, Saunders says.

“There will be two things happening there,” he says. “There will be their own rate filings that started last year earning through. Then as it converts onto our platform, the portfolio will become aligned with Definity binding rules, segmentation, and pricing. That’s just automatically going to happen over the conversion cycle.”

May 15, 2026
Where Definity is seeing gains from the Travelers integration
Definity Financial Corporation posted $36 million in run-rate expense synergies linked to integration of Travelers Canada business into its operations during 2026 Q1, according to management’s discussion and analysis (MD&A) included in its quarterly regulatory filings.

(Run-rate expense calculations determine a company’s operating costs on an annualized basis by extrapolating short-term spending, quarterly in this case, over a full year.)

Provided the first-quarter trend holds, that means Definity is “in position to achieve run-rate expense synergies of at least $100 million (pre-tax) within 36 months of close,” according to the company’s MD&A.

“We now expect to realize approximately one-third of our $100 million target in the first 12 months, and the remainder over the subsequent 24 months,” the filing adds.

Related: Definity Q1 earnings show Travelers integration producing results

Three main sources for synergies identified by the company include:

technology platform consolidation, as acquired personal and commercial volumes migrate onto Definity’s platforms

elimination of service charges from Travelers’ U.S. parent company

“operational efficiencies driven by elimination of duplicative and administrative activities and the benefits of scale.”

During a May 8 earnings call with investment industry analysts, Definity president and CEO Rowan Saunders notes: “While these initial savings are largely from the elimination of U.S. parent company service charges and proactive attrition management, the next phase of synergies will be driven by technology platform consolidation and operational efficiencies as the integration progresses.”

He adds discipline around costs to achieve those savings are equally important.

“To date, we have incurred approximately $93 million in acquisition costs and recorded $44 million of integration-specific expenses, keeping us firmly on track with our total estimate,” Saunders says, adding the careful execution shows up on the company’s balance sheet.

“Our debt-to-capital ratio is already down to 26.8%, approaching our long-term target of 25%, well ahead of our 24-month guidance. Even after funding this major acquisition, our total financial capacity remains robust at more than $1.1 billion, putting us in an enviable position to fund future organic growth and deliver on our capital priorities.”

Business priorities

One goal emphasized during the earning call is retention of the acquired Travelers Canada business.

“If you just look at the total growth in the first quarter of 35.4% to $1.4 billion overall…we’d say about 80% of that growth is coming through the acquired business in the first quarter,” chief financial officer Philip Mather tells the earnings call in response to a question on breakdown of the 2026 Q1 earnings growth. “Now, attribution to that gets less simple as time goes on, because with the pace of integration, we’ve already unified the new business offering. Trying to split that between the acquired operations versus the underlying run rate activity gets more complex as you go.

“That said, if you take the 35.4% and you…simply isolate out the impact of the retained premiums that we acquired through the deal, the split for that is just over 27% [and] is coming from the retention of the acquired premiums in the quarter. Just over 8% is coming from the underlying organic growth of the business, combined with the Travelers new business contribution in that quarter.”

For context, he adds, that 27% from the acquired business represents a roughly 82% retention rate for that block of business. “That’s already within just a couple of points of our company-wide retention rate,” Mather adds.

Investment income and capital growth

Another plus from the Travelers acquisition was a 60% growth in net investment income to $79.9 million during the quarter, Mather tells the earnings call. He notes the change was “driven primarily by the large asset base from the acquisition,” along with the company’s repositioning as fixed-income yields increased.

“Given this strong performance on our view of the current yield environment, we now expect our net investment income for the full year 2026 will be approximately $320 million,” he adds.

“Our broker distribution platform operating income grew by nearly 25%, driven by strong policy growth and favorable contingent profit commissions earned on a high-quality portfolio.”

And, in response to an analyst question about Definity’s financial capacity of $1.15 billion following the close of the Travelers Canada transaction being “higher than we would have expected,” Saunders replies the company is “very happy” with the outcome.

“Our experience is that this would not put us on the sideline for other opportunities that come by…,” he tells the earnings call. “We’re happy to keep building up some of that capital because our conviction is that there will continue to be M&A opportunities in the Canadian marketplace over the next couple of years.”
May 13, 2026
Navacord brokerage expands commercial platform ambitions
Navacord brokerage Jones DesLauriers Insurance Management Inc. (JDIMI) has announced a strategic partnership with Valebrook Family Office Inc. to support the growth and expansion of a commercial insurance platform across North America.

Valebrook is a multi-family office providing strategic advisory, capital solutions, and operating expertise to ultra-high-net-worth families, entrepreneurs, and institutions, JDIMI says in a press release Monday.

“Founded in Toronto, Valebrook is focused initially on Canada and Florida,” the company says on its website.

The deal became effective Apr. 1. “The partnership brings together Valebrook’s advisory-driven approach and strong client relationships with Navacord’s national brokerage capabilities, creating a platform positioned to deliver comprehensive insurance and risk solutions to business owners and enterprises,” Navacord says.

The collaboration is focused on building long-term client relationships and delivering tailored risk management solutions across key sectors including real estate, construction, manufacturing, and logistics.

Navacord says the deal reflects “a broader industry shift toward integrated advisory and risk solutions, as clients increasingly seek coordinated guidance across insurance, capital, and strategic planning.”

With more than 5,000 industry professionals and 150+ offices in Canada, Navacord delivers expert advice and tailored solutions in commercial and personal insurance, travel and specialty, group benefits, retirement, and financial planning.

Last November, Navacord began transitioning its broker partners to operate under a unified, national brand, although some legacy brands remain in transition. The rebranding process brought six broker partners under the Navacord banner:

Waypoint Insurance Services and Waypoint Benefits & Financial Services

Seafirst Insurance Brokers

Lloyd Sadd Insurance Brokers and Lloyd Sadd Consulting

Iridium Risk Services

Ives Insurance Brokers

Insurance Store.

Over the years, Navacord and its broker partners have made numerous deals, including a mega-merger in February between Navacord Corp. and Acera Insurance Services Ltd.

Combined, the two brokerages will place $7.2 billion in insurance and employee benefits premium and have $7.5 billion in retirement assets under management. Familiarity, scale, geographic diversity and product mix all played a role in the deal, the brokerages told Canadian Underwriter in February.

The two brokerages will work under their own brands until November and then will come under the Navacord banner, said Navacord president and CEO Shawn DeSantis and executive chairman T. Marshall Sadd.
May 7, 2026
Intact’s war chest for M&A is larger than the top-line revenue of some of Canada’s Top-10 insurers

Intact Financial Corporation has amassed a war chest of about $6 billion in capital to deploy for a future merger or acquisition, Intact execs revealed during the company’s 2026 Q1 earnings call Wednesday.

“I would say [we have] ample capacity to pursue large-scale M&A,” Intact Executive Vice President and Chief Financial Officer Ken Anderson told an investor asking about M&A or share buy-back options. “Today, we could execute on a $6-billion transaction without needing to issue equity.”

During the call, an investor asked the company’s execs to expand on a comment that Intact could use capital to buy back shares to increase the insurer’s share value (i.e., fewer shares in circulation can lead to a higher price per share). The questioner wondered if that strategy might eat into the company’s available capital to deploy M&A.

The $6-billion in capital is “the backdrop where we are saying that we have the capacity to do both,” Anderson said during the call. “We can pursue the M&A opportunities, but when the shares are meaningfully, significantly undervalued, we’re in a position to support them [with a buyback].”

In 2025, Intact reported more than $17 billion in total insurance revenue, according to Canadian Underwriter’s forthcoming 2026 Stats Guide, which uses data provided by MSA Research. In 2024, it’s market share in Canada was 15.4%, with the next closest insurer, Desjardins, having a market share of 9.98%.

Also in the news: How brokers are earning their ‘trusted advisor’ stripes

Intact Financial Corporation CEO Charles Brindamour said the goal now is to grow the company’s Canadian “franchise,” a term encompassing market share, deepened broker-customer relationships, improved underwriting profitability, expanding geographic reach, and reinforcing the long-term durability of the company, among other things.

“I think in terms of opportunities, we would love to grow our Canadian franchise by 50%, and there are no constraints of any substance that would prevent us from doing that,” Brindamour said.

“If you look at the Canadian franchise performance — three points of top line [revenue] outperformance [of the rest of the industry], eight points of bottom line [profit] outperformance — if you do a transaction here, this is massive value creation.”

Investors queried whether there were still opportunities for Intact’s BrokerLink to make acquisitions in the broker distribution channel.

“We don’t talk about [the brokerage distribution channel] so much in terms of M&A, because it’s multiple smaller transactions, but it’s created a very good machine of earnings and stable earnings over time,” Brindamour said. “It’s helpful strategically to the insurance operations, and we’re deploying capital in that space as well….

“And whether it’s through BrokerLink or the brokers which we support and invest in to consolidate the [broker channel M&A] pipeline is actually very good. To be clear, BrokerLink [is] very active. We’ve done a large percentage of transactions in Canada last year.”

Brindamour added the company is also looking to acquire managing general agents (MGAs) to support its global specialty lines business. He cited as an example Intact’s acquisition of an 80% stake in Paris-Based Cartan Trade, which offers digital-focussed trade credit coverage.

May 7, 2026
How AI is directing M&A activity in Canada’s P&C industry

Artificial intelligence explains some of the mergers and acquisitions activity in Canada’s property and casualty industry, a member of Swiss Re’s board of directors, Karen Gavan, said in Toronto Tuesday.

“We know this has to be a business of economy of scale,” Gavan replied, when asked about M&A activity in Canada at the reinsurer’s 40th annual Canadian Insurance Outlook Breakfast. “If you’re going to invest in AI to improve your processes, you have to be big. You can’t afford the investment unless you have scale, so absolutely essential.

“[For] the other part of AI, predictive analytics, you’ve got to have data. And the more data, the richer you are, and so you need both. And so it’s absolutely necessary to have consolidation. But I think…overall, it will be positive for the industry.”

Keynote speaker John Dacey, a former Group CFO of Swiss Re, discussed the importance of insurance companies stepping up to invest in AI. After his talk, Gavan made her remarks about AI investment being a driver of M&A activity in Canada. She was later asked about market concentration, to which she replied Canada still has a lot of room for M&A without disrupting choice for consumers.

“Certainly, going down to one or two companies, it’s not ideal,” she said. “But if we can have a good number of consolidated companies in the five to eight range, it will make a stronger industry.

“From a reinsurance perspective, having everyone consolidated, it’s a little tough for us. But I think it’s better for the Canadian industry if there is that consolidation.”

Dacey said Canadian P&C insurers needed to be aware of four main global influences on Canada: AI, energy costs, global inflation and interest rates, and the rise of private credit.

Speaking about AI specifically, Dacey said Canadian insurers should be thinking about investing in AI solutions “yesterday.”

“On the P&C side, [AI] is more clearly having effect as people think that value chain through,” Dacey said. “Removing human bias from underwriting. Making sure that the most recent data gets put, not just into your models, but your pricing. And most importantly, figuring out ways to bring new data that’s never been utilized for underlying commercial risks in particular, personalized risk maybe, into a price environment.”

P&C insurance companies successfully using AI will see two things happen, Dacey said.

“One, they will avoid some of the worst risks,” he said. “Not all of them, you can never avoid all of them. But you can clean up your portfolio before the experience of a loss.

“And you can also figure out a way to shape prices …to get some of the best risks your competitor has in your portfolio.

“And that combination on the margin, improving your combined ratio by a point, maybe two over time, is worth a lot of money.”

Plus, Dacey added, companies will need to use AI’s predictive analytics to help consumers, and also to help the distribution channel serve customers. Because if they do not, the broker distribution channel will develop AI models themselves.

“If you don’t do that on the distribution side, the intermediaries will also be coming out in front of you. And they’ll be directing risks in ways that benefit them, and who’s making the highest commissions.”

April 14, 2026
Quebec brokerage acquires firm’s personal insurance portfolio

Quebec-based P&C brokerage and financial services firm Ellipse Insurance has acquired the personal insurance portfolio of Synex Auto Habitation.

“This acquisition of Synex Auto Habitation’s portfolio is strategic for Ellipse,” says the firm’s president Patrice Jean in a press release last week. “It enables us to significantly strengthen our presence in the Montréal market while reinforcing Ellipse’s position as a major player in property and casualty insurance in Québec.”

Ellipse was founded in 2024 after the merger of PMA Assurances and PMT ROY Assurances et services financiers. The firm has more than 30 offices in Quebec, and since its founding has experienced strong growth by focusing on both organic expansion and “targeted, well-considered acquisitions such as this one,” the release says.

Employees of Synex Auto Habitation will join Ellipse’s extensive network of experts. Synex Auto Habitation provides home, tenant and auto insurance.

The acquisition aligns with Synex Assurance’s strategic direction to strengthen its performance and market positioning in commercial insurance.

“Our strategic plan in Québec focuses on concentrating our efforts on the segments where we generate the greatest value and where growth prospects are the strongest,” says Synex Assurance president Yan Charbonneau. “That said, it was essential for us to partner with an organization capable of ensuring rigorous continuity for our clients while recognizing the value of our teams.

“Ellipse emerged as a natural partner.”

This last acquisition “represents a significant competitive advantage for Ellipse, supporting both future acquisitions and sustained business development,” the brokerage says in the release.

Last August, Ellipse acquired AccèsConseil Assurances et services financiers. At the time, Jean said the acquisition “opens the door to new regions of Québec.”

AccèsConseil served the Greater Québec City area and the Côte-Nord region, offering coverages such as home, auto, recreational vehicle, umbrella, travel and various commercial insurance products.

For its part, Ellipse offers home, auto, recreational vehicle and commercial insurance. It also provides financial services, including financial planning, savings and investments, and group benefits/pension plans, among others.

April 13, 2026
Yes, broker producers want an ownership stake

Broker producers looking at making career shifts are examining their options a lot harder today than they did even two or three years ago, says industry veteran Randy Carroll, CEO of Ai Insurance Organization.

Carroll says when he started as a producer, he was glad to have a job working for a solid brokerage. He knew that over the next five to ten years if he built a good book of business and customer relationships, maybe there was an opportunity to have an equity discussion or the possibility of gaining a little bit of ownership in the brokerage.

“That conversation has changed so much,” Carroll says during a recent CU What’s on Dec? podcast. “Producers are now looking at, ‘No, I want to make sure that I’ve got my future baked in here. I want to know that I have that option baked in.’”

He says broker producers don’t want to leave themselves at risk of having a conversation with a principal broker or owner “on a chance or an opportunity that might happen.” They want assurances that if they follow a certain path, or achieve a specific goal, they can work their way to the next step.

Consolidation in the broker channel has driven a lot of this shift in career paths, with producer-to-owner models gaining traction. As an example, one broker producer told Carroll, “I’m 51 years old. I don’t want to do this again. This is my last move; I’ve got to make sure it’s a good one.”

Says Carroll: “He wants to make sure that he has something more than a gold watch and a handshake 10 years from now. He wants to make sure that he has a guarantee built in that as long as he meets the following criteria, that that conversation’s not a conversation, it’s a guarantee.”

Ownership options

Brokers’ ownership of a book of business is another important consideration, and brokers should take a hard look at their exit options and how easy it is to move a book of business to a new brokerage. For example, what happens if a broker has some percentage of ownership baked into their contract, but then one party wants to move on?

“[Say]…there’s nothing in that contract that says the brokerage has to help you move that book,” Carroll says. “So…you’ve found yourself a new home but now faced with, ‘Wow, I’ve got a lot of work to do over the next 12 months because, yes, I own that book, but I’ve got no way of transferring that book to this brokerage because that wasn’t negotiated.’”

This is why it’s important to look at what Carroll calls the ‘divorce clause.’

“I always look at it this way — at the end of the day, if a brokerage owner and a broker producer don’t see eye-to-eye and they want to part, they still want to have coffee,” Carroll says. “They still want to sit down and be able to socialize, they want to be able to go to a broker convention and still stop and have a chat and talk to each other.

“So you’ve got to do everything you possibly can to make sure that it’s fair for both parties. A messy divorce isn’t good.”

March 27, 2026
Intact COO talks about M&A preferences for Canada

When considering future mergers and acquisitions (M&A) opportunities in Canada, firms offering insurance product manufacturing and distribution remain “the number one priority” for Intact Financial Corporation, chief operating officer Patrick Barbeau tells a March 25 fireside chat.

That’s “followed closely by global specialty lines. And that means U.S. in particular, but also because of our global capabilities, [the] U.K. and [Ireland] or Canada,” he says during the National Bank of Canada Capital Markets’ 24th Annual Financial Services Conference.

Barbeau says the current M&A environment is more active than in the past 12 to 18 months. “Our approach to M&A has not changed…first it needs to be a good strategic fit,” he says.

“We’re looking for assets that have a very good overlap with what we’re already doing in the geographies [where] we operate. We’re not about trying to plant flags in more geographies…we would look for assets that have a good overlap with the lines of business we’re already in.”

He adds both large and small firms may be reviewed for M&A, and that Intact does many smaller deals, particularly in distribution – citing BrokerLink’s recent deals.

There’s also interest in managing general agents (MGAs) “in the context of specialty lines.”

Referring to Intact’s current balance sheet and excess capital, Barbeau says the company “could deploy around $5 billion in acquisition before issuing shares…we could issue shares on top, but it gives an idea of how much dry powder we have.”

Tech-based drivers

In Canada, he tells the conference, Intact’s been deploying technology with brokers that simplifies the quoting process – allowing them to make more quotes, and do it faster to create larger volumes of new business.

He notes the artificial intelligence (AI) evolution is underway and that companywide, “we’ve implemented more than 600 AI models within our system, at scale and in the operations.” He adds that’s currently creating recurring annual benefits of around $200 million – and the goal is to get to around $500 million by 2030.

First priorities are to deploy AI to improve the loss ratio, and in pricing segmentation and claims. “When we automate decisions and underwriting and claims, we do it with by leveraging the specific and very precise view of the profitability of every policy,” Barbeau says.

The next AI priority is boosting the top line with investments that improve customer journeys. And the remaining priorities are software engineering and efficiency.

Looking at the company’s structural drivers of return on equity (ROE), Barbeau says an evolving mix of business, specifically growth in commercial and specialty lines, has changed Intact’s portfolio over time.

“These lines of business are producing higher ROE on average, not only now but if you look at the longer term. So that’s creating a shift in the business,” he says.

Related: AI disrupted UK’s personal lines distribution. Why Intact exec says it won’t happen in Canada

And, in terms of introducing technologies, he tells the conference AI and pricing sophistication models were initially used in in personal lines. “We’ve been deploying these models into commercial lines and specialty lines – and also outside of Canada – and we see that it’s producing at least the same kind of benefits in improving the combined ratio.

“That’s another reason we think the [company’s] ROE is in a new zone and more structural than cyclical. We don’t really worry about cycle, because our pricing decisions are made at the policy level. Yes, we want to make sure we cover inflation, but then the final decision of writing risk or not is at the policy level. And our underwriters have these indicators on their screen[s]. They know the walk away price.”

March 26, 2026
BrokerLink expands again in Ontario, Alberta
A month after acquiring three brokerages in Ontario and Alberta, BrokerLink has further expanded its presence in those provinces with the acquisition of three more brokerages.

The latest acquisitions involve deals with InsuranceHero.ca and Levitt Insurance Brokers Ltd. in Ontario and Rizk Insurance Services Ltd. in Alberta. All three brokerages joined BrokerLink Mar. 1.

For more than a decade, InsuranceHero.ca has served customers across Ontario with a digital first, customer-driven approach, BrokerLink says in a press release.

“Founded in 2011, the brokerage combines the convenience of online tools with personalized support, streamlining the insurance experience through technology and automation,” BrokerLink says. “Specializing in personal insurance and supporting select commercial sectors, InsuranceHero.ca has continued to grow while staying rooted in its communities and contributing to local initiatives such as the Golf Marathon Sudbury and regional healthcare programs.”

According to its website, InsuranceHero.ca’s select commercial offerings include contractors insurance, beauty and spa insurance, specialty insurance (such as photographers and videographers, and protective security and security guards), sports and fitness insurance, and restaurant & bar insurance, among others.

The other Ontario acquisition involves Levitt Insurance, which was founded in 1990 and built its reputation on delivering tailored personal and commercial insurance solutions across Ontario. The brokerage primarily serves personal insurance customers but also brings strong expertise in contractor and transportation risks, and offers a specialized alarm installer and security services program, BrokerLink reports.

In addition, it provides auto (including Uber or Turo insurance), home, fleet, commercial crime, cyber and travel insurance, among others.

The Levitt Insurance team remains committed to supporting underprivileged children and cultural communities, BrokerLink adds.

In Alberta, Rizk Insurance has served individuals and businesses across Alberta for nearly 30 years. The brokerage, formerly known as Braeside Insurance Services, is known for its customized approach and use of modern digital tools.

The Rizk Insurance team has expertise in commercial sectors, including contracting, professional services, real estate, and small business. Other offerings include high value homes, luxury vehicle insurance, secondary home insurance, motorcycle and boat insurance, among others.

Like the other brokerages, Calgary-based Rizk Insurance is committed to its community, supporting local youth programs, schools and family initiatives that help strengthen the region.

“Each brokerage joining BrokerLink in March brings a strong blend of community-focused service and forward-thinking practices,” Michael Stack, BrokerLink’s vice president of acquisitions, says. “With their deep local roots and shared commitment to innovation, we’re able to meet customers where they are, whether they prefer to connect with us in person, by phone, or online.”

Team members from InsuranceHero.ca, Levitt Insurance, and Rizk Insurance will continue supporting customers in their local communities as part of the BrokerLink team.

BrokerLink’s first acquisitions of 2026 were:

Scarborough, Ont.-based William G. Waters Insurance Brokers has supported the Greater Toronto Area and Southern Ontario since 1961, providing multi-generational customers with tailored insurance solutions. The family-run brokerage provides auto, home, commercial and life insurance.

SL Insurance Brokers (Spruceland Insurance Brokers) has offered personalized service to local Albertans for close to 50 years. The brokerage offers a range of specialty and hard-to-place coverages.

With a main office in downtown Oakville, Ont. and branch offices in several other locations, Spriggs Insurance Brokers Limited has been operating in business for more than 50 years. It specializes in personal property and auto, and small business insurance.
March 24, 2026
What Wawanesa hopes to gain by acquiring Everest Canada

Continuing Canada’s property and casualty (P&C) insurer M&A trend, Wawanesa Mutual Insurance Company today announced it’s entered into an agreement to acquire Everest Insurance Company of Canada, a global specialty reinsurance and insurance firm.

In a press release today, Wawanesa says the transaction will bring an “extensive portfolio of specialty commercial insurance products” that’s expected to add around $305 million in commercial lines premiums annually. That’s roughly a 30% increase over Wawanesa’s current commercial premium volume.

Additionally, the commercial lines – which include cyber, accident and health, aviation, marine, professional liability, and P&C for larger businesses with unique, emerging, or complex needs – will be enhanced by Everest Canada’s established presence in key markets, the release says.

At present, says Evan Johnston, Wawanesa’s president and CEO, the company’s current commercial book is about $1 billion. “There’s very little overlap between commercial businesses at Wawanesa and at Everest….Wawanesa would participate in the small- to mid-market space, Everest would participate above that and in the specialty space,” he tells Canadian Underwriter.

“I think it does nothing but strengthen the relationships with our existing brokers [and] may result in strategic conversations with new brokers. We have an opportunity now to provide our existing brokers with a different suite of products than we’ve had before.”

Related: Behind Canada’s mega-merger of mutuals

Further, commercial lines help the insurer diversify away from personal lines. “It’s no secret that some of the regulated product has been challenging to navigate. For example, Alberta has been challenging to navigate,” Johnston says.

Plus, while Everest Canada does business across the country, its book is concentrated in Ontario and Quebec, which increases Wawanesa’s geographic diversification.

“Being a commercial book in an area that we don’t currently operate is a great diversifier from the traditional personal lines…environment,” he says. “To be very clear, this is an opportunity for us to launch at a point where we have scale now with this business, but the intention is definitely to grow it.”

While total insurance revenue data from CU’s 2025 Stats Guide, which cites 2024 data from MSA Research, suggests the acquisition won’t place Wawanesa among Canada’s Top 5 insurers, Johnston says “it provides a path for us to get there, and…frankly, what’s more exciting to me is that now we have the relationships, the talent, to be able to drive this business.

“We want to play on par with the largest players in this country. We believe that we are well positioned to do that…,” he adds.

“As a mutual we do take a long-term approach to business and relationships. And that’s what we’ll continue to do. We’re not done yet. We’re just getting started. I believe we have the right team, the right structure, the right employees. And now we’re much closer to having the right asset base to really make bold moves in this market and be a real, strong player. We’re no longer a small, prairie mutual.”

Also in the news: Do advanced driving systems really mean more cars get totalled?

In terms of funding the acquisition, Johnston tells CU that “After years of stability, we’ve built a balance sheet of over $11.5 billion of assets and a strong financial rating with AM Best.” He adds: “That foundation, together with the operational excellence we demonstrated recently has allowed us to generate enough internal capital to fund this [acquisition].”

To implement the transaction, Wawanesa says it’s entered into a purchase and sale agreement with a wholly owned subsidiary of Everest. Under the agreement, Wawanesa will acquire all issued and outstanding shares of Everest Canada.

Once the transaction closes, Everest Canada will enter into a Loss Portfolio Transfer Reinsurance Agreement with Everest Reinsurance Company (a Delaware reinsurance company and subsidiary of Everest) operating through its Canadian branch. Pursuant to that agreement, exposure to all liabilities of Everest Canada with respect to insurance policies issued by Everest Canada prior to the transaction’s closing will be retained by Everest. Everest Canada will continue to administer claims with respect to these policies on Everest’s behalf.

Also in the news: As NatCats slow to a dull roar, brokers turn their attention to other concerns

Johnston tells CU there are no issues related to a mutual acquiring a publicly traded entity, because while Everest is publicly traded, its subsidiary Everest Canada is not. “It will become a subsidiary of Wawanesa. We intend to support that separately and retain and continue to support all the key personnel so that they can continue to lead the business,” he adds.

Everest Canada and Everest will also enter into a Transition Services Agreement, under which an Everest affiliate will provide certain transition services to Everest Canada for a period of time after the transaction’s close.

The transaction is subject to regulatory approvals and is expected to close in fourth quarter 2026.

March 23, 2026