Manulife Financial has entered into business arrangements to reinsure the travel insurance coverage sold by Canada-based RBC Insurance through travel agencies.
The companies, however, have not disclosed financial terms of the arrangements.
As part of the arrangements, the sales and distribution support of RBC Insurance’s travel agency insurance business will be moved to Manulife.
In addition, the travel agencies can renew their agreements with Manulife after the expiration of their existing contracts with RBC Insurance. Travel agencies will continue to receive insurance services from RBC Insurance till the expiry of their existing contracts.
Manulife Financial will make employment offers to the majority of the RBC Insurance employees who provide sales, and sales support, directly to the travel agencies.
The arrangements, which are not subject to regulatory approval, are expected to begin in the third quarter of 2013.
Manulife Financial affinity markets senior vice president and general manager Brian Gooding said this transaction provides an opportunity to reinforce the company’s position in the Canadian travel insurance business.
"The travel agency channel is an important part of our strategic growth plan, enabling us to serve many more Canadians and meet their travel insurance needs," Gooding added.