Desjardins Group is acquiring the savings and loan portfolios of Groupe Promutuel, and will take over its investment and banking services as Promutuel renews its focus on its core insurance business, the companies announced on Monday.

Groupe Promutuel and Desjardins Group said they have received regulatory approval for a business partnership agreement that they first announced in January.

Under the partnership, which took effect July 1, Desjardins Group has acquired Groupe Promutuel’s savings and loans portfolios, will take over its banking services, and will manage fixed-income investments for Groupe Promutuel and its subsidiaries.

Ultimately, Desjardins will become the exclusive distributor of savings and loan products, and will become the investment and banking services manager, for Groupe Promutuel members and clients.

Promutuel clients seeking banking and investment products will be referred to a Desjardins branch.

The companies said the partnership will allow them to put their expertise and networks to good use to develop their business together and offer members and clients a full range of competitive products and services.

“We begin this partnership with the assurance that the products and services offered to our members and clients will meet their expectations. Our organizations share the same values; it goes without saying that quality will be our top priority,” said Monique Leroux, chair of the board and president and CEO of Desjardins Group.

Omer Bouchard, chair of the board at Groupe Promutuel, said he was extremely pleased with the new agreement.

“Today we are proud to be starting a new phase of our partnership to meet the needs of our insured members,” he said. “Our organizations have the same objective, which is to give our clients the absolute best.”

IE