Intact Financial announced that it has completed its acquisition of Canadian Direct Insurance (CDI), thereby extending its direct-to-consumer operations from coast to coast.
In Alberta, the Canadian Direct operations will be integrated with belairdirect, IFC’s existing direct-to-consumer brand. In British Columbia , the Canadian Direct brand will be maintained and will continue to offer its products directly to customers.
"The completion of this transaction represents a great opportunity to grow our direct operations while improving our ability to respond to the evolving needs of our customers," said Louis Gagnon , President Service & Distribution.
For the past three months, belairdirect has been reviewing CDI’s administrative practices, processes and systems in order to develop an action plan for the orderly and efficient integration of CDI. With this integration planning nearly complete, IFC anticipates a smooth transition and expects to benefit from the transaction as the formal integration begins.
The acquisition has been financed by IFC exclusively with excess capital. Annual synergies amounting to $10m after tax are expected from a combination of reinsurance cost reductions, systems-related cost savings and claims efficiencies.
Founded in 1996, CDI is a property and casualty insurance company that provides personal insurance solutions throughout British Columbia and Alberta.
Its pioneering telephone and internet distribution model was the first of its kind in BC – enabling it to pass on cost-savings, and giving it the ability to provide sales, service and claims functions direct to customers. As a provider of home, automotive and travel insurance, CDI is committed to providing competitively priced products and a fair and timely response to claims.