Canada-based Desjardins Group has completed the acquisition of State Farm Canada's businesses in property and casualty (P&C) and life insurance.
The company also acquired its Canadian mutual fund, loan and living benefits companies, as per the terms of the agreement.
As part of the deal, State Farm invested C$450m in non-voting preferred shares into Desjardins’ post-closing property and casualty insurance businesses, which comprises newly acquired State Farm Canada P&C operations.
A major European cooperative financial group Crédit Mutuel also invested C$200m, while Desjardins allocated C$700m capital to support the growth of its P&C business.
Desjardins noted that the deal allows the company to become the second largest P&C insurance provider in Canada with annual gross written premiums increasing from more than C$2bn in 2014 to around C$4bn projected in 2015.
Around 1,900 Canadian employees of State Farm and network of about 500 agents will continue to provide services to around 1.2 million customers in Ontario, Alberta and New Brunswick.