The newest merger and acquisition exercise within the Canadian mutual house has one U.S. mutual insurer buying a Canadian crop hail insurance coverage supplier, and three Ontario mutuals amalgamating in a separate deal.
On Feb. 4, Farmers Mutual Hail Insurance coverage Firm of Iowa (FMH) reported the acquisition of Palliser Insurance coverage, a crop hail insurance coverage supplier headquartered in Saskatoon, Sask.
It’s Palliser’s first acquisition of a non-U.S.-based firm, the 132-year-old family-owned mutual says in a statement.
“I’m enthusiastic about this partnership and the impression it is going to have as we proceed to broaden and diversify our footprint,” FMH president and CEO Shannon Rutledge says. “The regional experience, information, and accomplishments that the Palliser group brings with them will contribute to our long-term technique of strengthening and enhancing our core crop insurance coverage enterprise.”
Palliser affords crop hail insurance coverage throughout Western Canada, “supported by the business’s largest community of brokers and adjusters,” FMH says.
FMH offers complete danger administration options, together with personal and federal crop insurance coverage, reinsurance and brokerage companies.
FMH beforehand had a 20% share in Palliser, with FMH leaders serving on its board of administrators. For greater than three a long time, Palliser has been a accomplice of FMH, and the West Des Moines, Iowa-headquartered firm will proceed to assist Palliser’s skill to broaden and develop its relationships.
“FMH has been a valued enterprise accomplice with Palliser since 2008, recognizing and respecting our necessary legacy, function, and dedication to serving the Western Canadian agricultural group,” says Ken Doleman, Palliser’s president & CEO. “Our widespread tradition and shared values, mixed with FMH’s long-standing experience in crop insurance coverage, will serve to strengthen our deep dedication and value-added strategy to service excellence.”
On Feb. 5, three Ontario mutuals — Caradoc Townsend Mutual, Grenville Mutual and Lambton Mutual — introduced the signing of a pre-amalgamation settlement, “marking the start of a strategic partnership to boost their service choices whereas preserving sturdy native ties,” the mutuals say in a press release.
The proposed amalgamation brings collectively mutuals with greater than a century of personalised insurance coverage service throughout dwelling, auto, farm and small enterprise insurance coverage segments.
A joint committee of board members, CEOs and advisers will proceed with a radical due diligence part, making certain all choices prioritize policyholders, assist workers, empower brokers and brokers, and reinforce group connections, the mutuals introduced.
It’s not clear when the amalgamation will come into impact.
The proposed deal is topic to approval from every firm’s policyholders, regulatory approval by the Monetary Companies Regulatory Authority of Ontario, and the consent of the businesses’ companions: the Ontario Mutual Insurance coverage Affiliation, Farm Mutual Reinsurance Plan Inc. (Farm Mutual Re), and the trustees of the Hearth Mutuals Assure Fund.
Function picture by iStock.com/Elenathewise
