Charles Brindamour, president and CEO of Intact Financial Corporation delivers a speech at the company's annual general meeting in Montreal on May 5, 2010.John Morstad/The Globe and Mail
Canada's largest property and casualty insurer Intact Financial Corp. is building its business in Eastern Canada through the acquisition of Newfoundland and Labrador-based Metro General Insurance Corp. Ltd.
Metro General is a small, privately owned insurance company focused on home, auto and liability insurance. Terms of the transaction were not disclosed. The deal is expected to close later this year, pending regulatory approvals.
Metro General said Friday that is has $27-million in direct written premiums, the amount customers pay for their insurance policies. The company has a network of 13 brokers that sell insurance through Newfoundland and Labrador and in rural areas of Nova Scotia.
Intact expects the acquisition to improve its market position in the East.
"While the acquisition will allow us to expand our reach, Metro General customers will benefit from the broad offering of products and services of Intact Insurance and our outstanding customer-driven orientation," said Alan Blair, senior vice president of Intact Insurance, in a statement.
Metro General's management said the deal would benefit both staff and customers.
"Joining one of the most respected providers of property and casualty insurance in Canada will create new career and development opportunities for our employees while brokers and customers will benefit from Intact's unparalleled portfolio of insurance solutions and its high quality services," said Hayley Wilson, Metro General's chief executive officer, in a press release.