Toronto-based Canadian Broker Network (CBN) will acquire South Western Insurance Group Ltd., a wholesale insurance intermediary that provides brokerages with specialty and niche insurance products, from Toronto-based Intact Financial Corp. (TSX:IFC), the companies said Wednesday.
Terms of the transaction, which is expected to close by the end of the year, were not disclosed.
The acquisition of South Western marks CBN’s expansion into the wholesale insurance market and complements its existing activities. CBN says its new ownership will provide South Western with the ability to expand its relationships with insurance companies, which will greatly benefit South Western’s brokers.
“This acquisition is a tremendous opportunity as it allows us to enter an important segment of the brokerage industry,” said Daryn McLean, chairman of CBN. “With more than 50 years supporting brokers, South Western’s growth potential is significant thanks to its strong industry relationships, experienced professionals and unique underwriting expertise in niche and specialty insurance products.”
Upon closing, South Western will operate as an independent subsidiary of CBN with its own leadership team, name and brand. “At South Western, brokers can always count on an impressive team of committed and talented employees. Moving forward, the current team will play an even greater role in strengthening our industry relationships and expanding our activities,” said Mack Rooney, president of South Western Group.
CBN is a group of nine leading, independent commercially oriented insurance brokers. Together, the network writes more than $750 million in property and casualty premiums annually.
South Western Insurance Group is a wholesale Insurance Intermediary/Managing General Agent offering a broad range of insurance solutions for specialty, niche, program and hard-to-place business. It has offices in Toronto, Edmonton, London, Ont., Quebec City, and Vancouver.