SSQ Financial Group buys AXA Life Insurance from Intact Financial for $300 million
SSQ Financial Group has acquired AXA Life Insurance from Intact Insurance for $300 million. With the support of its majority shareholder, Fonds de solidarité FTQ (FSTQ), the newly-formed SSQ Insurance Company Inc. will become an entity of SSQ Financial Group.
AXA Life Insurance, a subsidiary of AXA Canada, was acquired by Intact Financial Corporation as part of the $2.6 billion acquisition of AXA Canada. AXA Life Insurance, which has approximately 250 employees, offers health and life insurance products through a vast network of agents. In 2010, AXA Life Insurance premiums amounted to $169 million.
“[The] announcement reflects our strategic priorities which are to accelerate our growth and diversify our activities through acquisitions. We are proud of this acquisition which is in line with our objectives. The range of services offered by AXA Life Insurance will fit right in with our existing product offering and strengthen our position as a key player in insurance and financial products in Canada,” said Mr. René Hamel, CEO of SSQ Financial Group.
“Given our focus on home, auto and business insurance, it was important for us to identify a prospective acquirer that would pursue with success the activities of AXA Life Insurance and offer the best value proposition to its employees, distribution partners and customers,” said Charles Brindamour, Chief Executive Officer of Intact Financial Corporation (IFC). “We have found in SSQ Financial Group a strong operator and are confident that the transaction will be most beneficial to all AXA Life Insurance stakeholders.”
IFC said it intends to use the proceeds from this transaction to repay the term loan facility used to partially finance the acquisition of AXA Canada. As a result, the debt to total capital ratio of IFC is expected to be back in line with its target of 20% once the transaction closes.
