Intact to acquire The Guarantee and Frank Cowan Company
Intact Financial Corporation announced Aug. 15 that it has entered into an agreement with Princeton Holdings to acquire The Guarantee Company of North America and Frank Cowan Company Limited for a cash consideration of approximately $1 billion.
The transaction is expected to close in the fourth quarter of 2019, subject to regulatory approvals.
The Guarantee is a Canadian-owned specialty lines insurer with customers in Canada and the United States. Intact says that acquiring the company will add “more than $560 million in Gross Premiums Written, including over $100 million in the U.S., bringing Intact’s annual North American specialty lines Direct Premiums Written close to $3 billion.”
High net worth customer segment
Intact says the acquisition will bolster its position in Canada and add new products for the high net worth customer segment. “It meaningfully advances Intact’s North American specialty lines platform solidifying prominent positions in public entity and surety,” says the company.
Frank Cowan Company is an MGA that provides specialized insurance programs to public entities across Canada. Princeton Holdings will continue to retain full ownership of its other businesses: Cowan Insurance Group, Cowan Asset Management, and Fountain Street Finance.
“The acquisition of The Guarantee Company of North America and Frank Cowan Company is strongly aligned with our strategic and financial objectives,” stated Charles Brindamour, Chief Executive Officer, Intact Financial Corporation. “We are delivering on our objectives to grow in Canada and build a leading North American specialty platform. I’m enthusiastic about what we will accomplish by leveraging the combined expertise of our teams and our expanded offering.”