Thursday, October 15, 2009 12:05 PM
Manulife: Small deal, big market share
Tara Perkins
The purchase price for Manulife Financial’s MFC-T deal to buy Pottruff & Smith Travel Insurance Brokers Inc. hasn’t been disclosed, but it’s too small to be material to the insurance giant. That being said, the deal for the privately held company will vault Manulife into the top ranks of travel insurance providers in Canada.
Pottruff’s principal owner is founder Gary Pottruff, who has told his staff that he will be retiring. The deal is expected to close Nov. 2, at which point Pottruff’s 90 employees in Woodbridge, Ont., and Ste-Therese, Que., will become part of Manulife’s Affinity Markets business segment.
Mr. Pottruff sold Pottruff & Smith Insurance Brokers Inc.’s property and casualty, life and group benefits brokerage business to Cornerstone Insurance Brokers in July, and had since been looking for a buyer for the travel business. Manulife and Pottruff had already been working together.
This deal comes after Manulife Financial bought AIC Ltd.’s Canadian funds business in the summer, also for an immaterial amount.