ING Canada and Allianz Group have closed their previously announced definitive share purchase agreement for the acquisition by ING Canada of Allianz’ Canadian P/C operations.
“Under the terms of the agreement, ING is acquiring Allianz of Canada Inc. and its subsidiaries Allianz Insurance Company of Canada, group insurer Trafalgar Insurance Company of Canada as well as Canada Brokerlink, a network of insurance brokerages operating in Ontario and Alberta,” said the bulletin. “Allianz will however retain its Canadian industrial lines business, which is part of Allianz Global Risks (AGR).”
The purchase price is CDN $370 million (U.S.$ 306.5 million), which is expected to be financed partly through the proceeds of a planned initial public offering of ING Canada shares.
The announcement said: “On a pro forma basis, as if the acquisition had occurred on January 1, 2004, ING Canada’s direct written premiums for the first nine months of 2004 would have amounted to CDN $3.152 billion [U.S. $2.61 billion] with total assets as at September 30, 2004 of CDN $8.941 billion [U.S. $7.4 billion].
“The Allianz acquisition with its portfolio of personal and small to medium commercial lines business is expected to reinforce ING’s position in its core businesses and expand its national presence,” said the bulletin.
ING Canada, a subsidiary of the Netherlands ING Group, is the largest P/C provider in Canada, based on direct premiums written in 2003. ING Canada’s principal insurance products are automobile, property and liability insurance, which it provides primarily to individuals and small to medium sized businesses through its insurance subsidiaries across Canada.
Topics Mergers & Acquisitions Property Casualty Canada Allianz
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