Definity Financial Corp., the 150-year-old insurer that held its initial public offering last week, will look to use its newfound access to capital to expand through acquisitions, the firm’s top executive said.
Chief Executive Officer Rowan Saunders said the commercial insurance business, particularly for mid-market companies and specialty lines, are a priority for expansion. The company, which has a 4.6 per cent share of the Canadian property and casualty insurance market, also might look to add to its personal lines operations, he said during a virtual press conference.
The insurance industry’s decades-long trend of “consolidation will continue and perhaps intensify,” Saunders said Wednesday. “We do intend to be a participant in that.”
Definity’s technology -- including its Sonnet online insurance service and Vyne broker-service platform -- can accommodate more users than they currently serve and would make acquisitions more profitable, he said.
“They’re built for a much bigger business than we are today,” Saunders said of the technology platforms. “Therefore, looking for a scaled personal insurance acquisition would also work because we believe that there will be significant synergy there, and we can be a better owner of somebody else’s business.”
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