Great West subsidiary buying Personal Capital in deal worth at least US$825M

WINNIPEG _ A subsidiary of Great-West Lifeco Inc. has signed a deal to buy U.S. investment manager Personal Capital in a deal worth at least US$825 million.

Under the agreement, Empower Retirement will pay US$825 million, plus up to an additional US$175 million subject to the achievement of target growth objectives.

Great-West says Personal Capital is a hybrid wealth manager that combines a digital experience with personalized advice delivered by people.

The company says the deal will combine Empower retirement plan services and financial tools with Personal Capital’s digitally oriented personal wealth management platform.

IGM Financial Inc., a sister company to Great-West, holds a stake in Personal Capital and says it expects US$176.6 million in proceeds from the deal, plus up to an additional $24.6 million in possible additional payments.

The transaction is expected to close in the second half of 2020, subject to required regulatory approvals.

 

Desjardins to give $100M back to its Canadian auto insurance clients

MONTREAL, June 29, 2020 /CNW Telbec/ – Today, Desjardins’s property & casualty insurance subsidiaries announced they would be issuing $100 million in premium refunds to their Canadian auto insurance clients. The refunds are for eligible personal and commercial insurance clients, who will receive a refund between 25 per cent and 40 per cent of the premium they pay for one month, depending on their market realities. The refund will apply to policies for eligible personal and commercial vehicles.

All told, 2.1 million clients will automatically receive the refund through their usual payment method, so they don’t need to do anything.

More people are working from home than ever before. Combined with the extended lockdown, this means that travel has been limited and car accident risks have been reduced. Fewer accidents mean fewer claims to pay out, so Desjardins has decided to reflect this reality by issuing this refund to its clients.

“Even though we’re beginning to reopen our provinces and cities, the pandemic will continue to affect our members and clients. We’re proud to say that we’re still here for them in these unprecedented times. Right now, we’re able to give $100 million back to our auto insurance clients. This is just one of the many ways that Desjardins has helped its members and clients deal with COVID-19 since March 16,” said Guy Cormier, President and CEO of Desjardins Group.

Today’s announcement follows an initial refund of close to $50 million to auto insurance clients, bringing the total close to $150 million.

About Desjardins Group
Desjardins Group is the leading cooperative financial group in Canada and the sixth largest cooperative financial group in the world, with assets of $326.9 billion. It has been rated one of Canada’s Top 100 Employers by Mediacorp. To meet the diverse needs of its members and clients, Desjardins offers a full range of products and services to individuals and businesses through its extensive distribution network, online platforms and subsidiaries across Canada. Ranked among the world’s strongest banks according to The Banker magazine, Desjardins has some of the highest capital ratios and credit ratings in the industry.

SOURCE Desjardins Group

https://www.desjardins.com/

How to boost your auto loan application

How to boost your auto loan application

Tips from

Cars are expensive—sometimes really expensive. And it’s rare to have cash ready to go in the bank when your old car dies or you need an upgrade. That’s was auto loans are for. But while they’re one of the easier kinds of credit to be approved for, qualification isn’t 100 percent guaranteed.

However, there are simple steps you can take to help level-up your application to be a better shoo-in for approval even if you’ve been rejected in the past. Here are a few things you can do to yourself the best chance of success.

Why applications are denied

It’s possible, although rare, for applicants to be denied an auto loan. When it does happen it’s most often for one of two reasons:

  • The applicant doesn’t have enough credit history to base a decision on
  • The applicant’s monthly debt obligations, including requested loan payment exceed the maximum allowable percentage of monthly income

If you’re worried that either of these may apply to you, there are several credit-boosting tips you can use to help you qualify more easily for an auto loan.

4 credit-boosting tips

1. Make sure you have good credit

By law, you can check the details held on your files with the major credit reference agencies Equifax and TransUnion. Use this ability to see exactly how your credit rating stands.

If your credit is good, you know you can probably apply successfully. But if it’s less than perfect, it’s not the end of the world.

2. Work on your credit before applying

If your credit rating is a little below its best, do what you can to clean it up before you apply. For example:

  • Check your file for any mistakes, such as debts listed which you’ve previously paid off and write to the agencies asking for any errors to be corrected, no matter how small.
  • Look for any old, small debts you can clear without too much trouble
  • Make sure any regular credit repayments you’ve been making are shown in your report so that your score will get the benefit

Working on your credit is worthwhile even if it’s already good, as even small improvements in your score could mean you’re offered a better rate on your loan.

3. Have a solid source of income

Your income level is key to qualification for any kind of credit. You may not be able to do much about the money you have coming in, but it’s essential to have a reliable main source of income. It’s also beneficial to gather solid documentation showing proof of all the income you receive in case they are requested. Tax documents and current paystubs are some examples

4. Consider a pre-approval

Lastly, if you’re worried about your chances of qualifying, testing the water with a pre-approval is a sensible step to take. It will let you see how much you could borrow and under what terms, and will let you look for your next car with full confidence you can finance it.

Talk to us today

Taking these steps before applying will give you the best chance of qualifying but if you’re ready to apply or have questions, talk to us today. We can arrange auto financing for people with a wide range of circumstances.

Source:
Coast Capital Savings Federal Credit Union

Road tests for certain types of driver licenses set to resume in B.C.

VANCOUVER _ The Insurance Corporation of British Columbia is resuming on-road testing for commercial licences but drivers waiting for passenger vehicle tests must hold on a little longer.

In line with B.C.’s COVID-19 restart plan, the corporation says commercial road tests resume next week and appointments can be booked starting Thursday.

The tests are for drivers seeking licence endorsements ranging from a Class 1, which is operation of a semi-trailer, to Class 4, which covers school buses, ambulances, taxis and limousines.

ICBC says a decision about tests for other licence types, including Class 5 passenger vehicle licences, depends on the effectiveness of the first phase of testing and access to enough protective gear.

Examiners will use a combination of masks, shields, goggles, gloves and disposable seat covers when doing the tests.

Those taking the tests will be asked several health questions and must wear a supplied medical-grade mask during the test.

ICBC suspended all road tests on March 17 because of the pandemic.

Nicolas Jimenez, the corporation’s president and CEO, says the safety of its customers and employees is the top priority.

“We have taken a thoughtful approach to develop a plan that allows us to resume road tests in the safest manner possible,” he says in a statement.

“Customers have been eager to see these services resume and we’re happy to have found a way to do so safely.”

Some knowledge tests, required in advance of a road test, resumed on May 4. The corporation expanded its approach on June 1 by including knowledge tests for all types of licenses.

 

Canada’s Film & TV Industry Presents Unique Insurance Solution with Government Support

The excerpted article was written by Manori Ravindran | Variety

Canada’s production community is working towards a bespoke insurance solution as the country looks to jumpstart production after it ground to a halt in March amid the coronavirus outbreak.

Variety can reveal that producers’ trade body, the Canadian Media Producers Association (CMPA), is developing a proposal for a “market-based solution” that asks the federal government to serve as a backstop for coronavirus insurance claims.

An update from the CMPA sent to producers on Monday and seen by Variety details a plan in which producers would pay premiums to access COVID-19 coverage, which would then go into “a dedicated pot to pay for potential claims.”

“The government would only contribute financially if the funds generated [through] the sale of the policies was insufficient to cover the claims made,” reads the memo.

In Canada, like most other countries, insurers are refusing COVID-19 coverage for the production sector. “Left unaddressed, this would mean the financial consequences associated with another industry-wide shutdown, or an on-set COVID-19 incident, would fall primarily to the producer,” said the CMPA, warning that the repercussions of these scenarios would be “potentially devastating” to the sector and threaten its prospects of a smooth restart.

The org has now raised the insurance issue with the government and is to submit a “detailed proposal” in the coming days, outlining what it calls an “industry-wide solution.”

A CMPA spokesperson told Variety: “Without the availability of insurance policies to cover future COVID-19 risks, most production in Canada will not resume. A government-backstopped insurance program will provide confidence to the marketplace, encouraging insurers to offer COVID-19 coverage, allowing producers to purchase policies, and ultimately allowing Canada’s production sector to re-open, once it is safe to do so.”

In recent weeks, the CMPA has hinted at plans to develop a “made-in-Canada solution” to cover productions post-shutdown. The group has been examining international insurance solutions, such as France’s indemnity fund — a $54 million fund that will cover up to 20% of a project’s budget and work on a case-by-case basis — as well as programs being proposed in the U.K. and other territories.

The CMPA said previously that it was also looking at tax credits, shared risk pools and government liability protections.

As revealed by Variety last week, the U.K. recently submitted a proposal to the government for a guarantee around coverage of suspension or abandonment costs relating to COVID-19. This could manifest in the form a government-backed fund that may amount to hundreds of millions of pounds.

The CMPA estimated in April that Canada’s production shutdown put around 172,000 jobs at risk, and could ultimately cost the Canadian film and TV sector — whose service industry supports myriad Hollywood shoots in provinces such as British Columbia and Ontario — around CAD$2.5 billion ($1.8 billion) in both domestic and foreign production dollars if it continues until the end of June.

There is, however, finally some light at the end of the tunnel, with the first signs of production resuming post-shutdown. Manitoba became the first province to allow its production sector to restart as of Monday, with local soundstages opening back up for business.

The first wave of renewed production in Canada is expected to focus on domestic projects due to the limitations posed by mandatory quarantine periods for inbound travel, making it tricky for any international projects, particularly U.S. studios, looking to shoot up north.

Source: Read more articles like this at Variety

CMHC tightens lending standards to protect housing market during COVID 19

By Tara Deschamps

THE CANADIAN PRESS

TORONTO _ Canadians looking to borrow money for a home purchase a home are in for some extra challenges after the Canada Mortgage and Housing Corporation announced changes to its lending standards on Thursday.

The country’s national housing agency is increasing the qualifying credit score for mortgage insurance to 680 from 600 and limiting gross and total debt servicing ratios to their standards of 35 per cent and 42 per cent, respectively.

“COVID-19 has exposed long-standing vulnerabilities in our financial markets, and we must act now to protect the economic futures of Canadians,” CMHC head Evan Siddall said in a statement.

“These actions will protect homebuyers, reduce government and taxpayer risk and support the stability of housing markets while curtailing excessive demand and unsustainable house price growth.”

Under the changes effective July 1, CMHC will also no longer treat non-traditional sources of down payment funding, such as a personal unsecured line of credit, as equity for insurance purposes.

It will also suspend refinancing for most multi-unit mortgage insurance.

The move comes just weeks after Siddall appeared before the Standing Committee on Finance in Ottawa to warn of trouble ahead for the housing market.

‘Our support for homeownership cannot be unlimited,” he said.

“Homeownership is like blood pressure: you can have too much of it. Housing demand is far easier to stimulate than supply and the result, as we’ve seen, is Economics 101: ever-increasing prices.”

The majority of mortgages insured by the CMHC will not be affected by the more stringent qualifications.

In the fourth quarter of 2019, the average debt servicing ratios were well below the 35 per cent and 42 per cent thresholds, and depending on the metric, between 63% and 82% of all qualifying mortgages were below the limit.

Spokesperson Leonard Catling said the changes “were not made because of our current book of mortgage insurance business, rather to maintain its integrity.

“High household indebtedness continues to be a concern and the COVID-19 pandemic has exposed the long-standing vulnerabilities in our financial markets.”

The CMHC forecasts a decline of between nine per cent and 18 per cent in average house prices over the next year because of higher mortgage debt and increased unemployment.

Siddall warned the finance committee a growing debt deferral cliff could be headed Canada’s way in the fall, when some jobless Canadians will need to start paying their mortgages again after deferrals run out, and as much as one-fifth of all mortgages could be in arrears if the economy has not recovered sufficiently, he warned.

“We need to avoid exposing young people and through CMHC, Canadian taxpayers to the amplified losses that result from falling house prices,” he said.

“Unless we act, a first time homebuyer purchasing a $300,000 home with a 5 per cent down payment stands to lose over $45,000 on their $15,000 investment if prices fall by 10 per cent,” he said.

This report by The Canadian Press was first published June 4, 2020.

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