Winnipeg-based Great-West Life Assurance Company announced on Wednesday that it has acquired Toronto-based PlanDirect Insurance Services Inc. (PDAssure), a company that markets and administers individual health insurance products.
The acquisition is effective immediately. PDAssure will retain its name and will operate as a subsidiary of Great-West Life. Financial details of the transaction were not disclosed.
“We are very pleased to have reached an agreement with PDAssure to acquire their business,” said Stefan Kristjanson, executive vice president of Great-West Life’s group business.
The two companies have worked closely together since PDAssure was founded in 1993. The company was formed with a goal of providing health and dental insurance for retired employees across Canada. Great-West Life agreed to become the insurer, and the first policies were issued in July 1994.
Today, PDAssure offers a variety of health insurance plans for retirees in Canada through licensed insurance agents.
“Great-West Life and PDAssure have had a successful relationship over the past two decades, supporting the individual health insurance needs of Canadian retirees and families,” said Kristjanson. “Now with PDAssure as part of our organization, Great-West Life is strongly positioned to become a leader in this marketplace.”
The founders of PDAssure, Millar Drummond and Rolf Normandin, said they decided to sell the company in order to retire.
“We were looking to retire from a successful business we had built,” said Drummond, chief operating officer at PDAssure. “Our choice of Great-West Life was based on a number of factors, including Great-West Life’s commitment to client service, reputation for quality, and leadership in serving the group life and health insurance needs of Canadians.”
Drummond and Normandin will continue to be associated with PDAssure for an interim period, to help ensure a smooth transition.