Definition Financial Corp., the 150-year-old insurer that held its IPO [on Nov. 17], will seek to use its newfound access to capital to expand through acquisitions, the company’s chief executive said.
Chief Executive Officer Rowan Saunders said the commercial insurance business, particularly for medium-sized businesses and specialty lines, is a priority for expansion. The company, which has a 4.6% share of the Canadian property and casualty insurance market, could also look to expand its personal line business, he said at a virtual news conference.
The decades-long trend of “consolidation in the insurance industry will continue and perhaps intensify,” Saunders said [Nov. 24]. “We want to participate in that.”
Definity’s technology — including its online insurance service Sonnet and the Vyne brokerage service platform — can accommodate more users than they currently serve and would make acquisitions more profitable, he said.
“They were built for a much bigger company than we are today,” Saunders said of the technology platforms. “Therefore, looking for a large-scale personal insurance acquisition would also work, because we believe there will be significant synergies there and we can be a better owner of someone else’s business.”
Photo credit: Sean Gallup/Getty Images Europe
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Topics Mergers Carriers Canada
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