Intact Financial Corporation (TSX:IFC) has completed its $530-million acquisition of The Westaim Corporation’s (TSX: WED) wholly-owned subsidiary, JEVCO Insurance Company, Intact announced on Wednesday.

JEVCO is a provider of specialty and niche insurance products for individuals and businesses in Canada.

The acquisition, which was first announced in early May, increases Intact’s direct premiums written by approximately $350 million on a pro forma basis, and brings its market share to 17%. It also enhances the company’s product offering to include insurance for recreational vehicles, such as motorcycles, snowmobiles and all-terrain vehicles, as well as commercial, surety and non-standard auto insurance.

“We are pleased to broaden our specialty line offering to individuals and businesses. The acquisition provides us with another opportunity to reinforce our commitment to the broker channel, enrich our customer value proposition and enhance our competitive position,” said Charles Brindamour, CEO of Intact Financial.

The transaction is expected to generate an internal rate of return above 20%, to be accretive to net operating income per share beginning in 2013 and to increase book value per share by 2.6%.

The acquisition has been financed with the proceeds from a $237-million subscription receipt issuance, a medium term note offering and a portion of IFC’s excess capital. The company expects to maintain a strong capital position, with an estimated minimum capital test ratio above 200% and a debt to total capital ratio below 20%.