Canada's Intact to buy specialty insurer and MGA from Princeton Holdings for C$1bn

Canadian property and casualty insurer Intact Financial Corporation has entered into a definitive agreement with Princeton Holdings to acquire The Guarantee Company of North America, a specialty lines insurer in Canada and the US, and Frank Cowan Company, a managing general agent (MGA) focused on specialty insurance, for approximately C$1 billion ($750 million) in cash.

Intact expects the transaction to deliver strong economics through loss ratio improvements, expense savings, and optimisation of reinsurance and capital. It is expected to close in the fourth quarter of 2019, subject to regulatory approvals.

Intact said the acquisition bolsters its position in Canada and adds new products for the high net worth segment. It is aimed at enhancing the company's specialty lines capabilities in North America and Canada while adding an MGA to the platform.

"The acquisition of The Guarantee Company of North America and Frank Cowan Company is strongly aligned with our strategic and financial objectives," said Charles Brindamour, chief executive officer, Intact Financial Corporation. "We are delivering on our objectives to grow in Canada and build a leading North American specialty platform. I'm enthusiastic about what we will accomplish by leveraging the combined expertise of our teams and our expanded offering."

Maureen Cowan, chairman of the board, Princeton Holdings, said: "The Guarantee Company of North America and Frank Cowan Company have built a strong customer-focused specialty and personal lines business over almost 150 years, of which we are very proud. After careful consideration, we believe that combining our strong customer focus and the expertise of our employees in specialty lines and surety, with Intact's resources, in particular its advanced analytics capabilities, provides tremendous opportunities for the combined entities to leverage one another's strengths to build an outstanding, Canadian owned, North American specialty insurer."

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