Desjardins strengthens its Canadian market presence with ICPEI acquisition, enhancing commercial insurance offerings
Desjardins has announced its acquisition of The Insurance Company of Prince Edward Island (ICPEI) through its subsidiary, Desjardins General Insurance Group Inc., in collaboration with ICPEI Holdings Inc. (ICPEI Holdings).
This move enables Desjardins to integrate ICPEI's home, auto, and commercial insurance services into its extensive portfolio.
Notably, Desjardins advanced the timing of this acquisition by exercising its call option ahead of the initially planned schedule, pending the fulfillment of regulatory approvals and customary closing procedures.
This acquisition signifies a pivotal expansion for Desjardins, aiming to diversify its insurance offerings to better cater to the needs of small and medium-sized enterprises across Canada. ICPEI's specialized expertise and its established network of brokers are expected to fortify Desjardins' capability to more effectively serve its clients.
Guy Cormier, president and CEO of Desjardins, stated, “With this acquisition, we're strengthening Desjardins' position in the Canadian commercial insurance market.”
He continued, “That's why we're very pleased to be able to count on ICPEI's expertise in brokerage distribution of commercial insurance to expand our reach and access new markets.”
Further, commercial insurance products from ICPEI will be made available through insurance brokers, complementing the existing direct sales and exclusive agent networks of Desjardins Group.
This approach is expected to leverage Desjardins' financial stability to support ICPEI's ongoing development and expansion efforts.
Echoing the sentiments of strategic alignment and growth, Serge Lavoie, president and CEO of ICPEI, remarked, "This acquisition is clearly in line with ICPEI's strategic goals to expand insurance distribution across the country and pave the way for even greater collaborations on the Canadian market.”
The decision to expedite the acquisition comes after Desjardins' initial minority interest purchase in ICPEI in February 2023, with an original timeline set for a complete acquisition within three to five years.
Prompted by favorable market conditions and ICPEI's adherence to partnership commitments, Desjardins accelerated its acquisition strategy. This move aligns with Desjardins' broader objectives of growth and proactive engagement in key sectors.
This acquisition stands as a significant milestone for Desjardins, ICPEI, and their partnering brokers, promising enhanced services for Canadian businesses and avenues for growth in strategic sectors.
