The Quebec-based giant completed the purchase of State Farm Canada’s business in life insurance and property and casualty insurance.
Desjardins also acquired State Farm’s Canadian mutual fund, loan and living benefits companies.
Desjardins Financial Security (Desjardins' Life and Health Insurance subsidiary) with other business units allocated C$250 million in capital for the life insurance, mutual fund, loan and living benefits components of the agreement.
The transaction increases the Group's geographic diversification of earnings and risk while providing an advantage of scale and strengthens its position among life and health insurers in Canada.
Desjardins Group also becomes the second largest P&C insurance provider in Canada with annual gross written premiums increasing from over C$2 billion in 2014 to more than C$4 billion projected in 2015.
“Similarities between our two organizations are numerous,” says Monique F. Leroux, chair of the board, president and CEO of Desjardins Group. “I am confident that our shared values, our passion and commitment to our work will allow us to better serve Canadians, together.”
Desjardins Group started the new year off with a bang.