Will enhance customer experience and deepen
claims expertise
- Acquiring a national
restoration firm with an outstanding reputation for customer
service
- Residential and commercial customers will benefit from
simpler, faster and superior service
- Strategically aligned: combination delivers operational
efficiencies, deeper claims expertise and risk diversification
- Financially compelling: attractive internal rate of return
and immediate low single digit accretion to NOIPS
TORONTO, Aug. 6, 2019 /CNW/ - Intact Financial Corporation
(TSX:IFC) and On Side Developments Ltd., the parent company
of On Side Restoration ("On Side Restoration") today
announced that they are joining forces to strengthen repair and
restoration services for personal and commercial property claims
customers across Canada. With this
acquisition IFC will deepen its claims expertise and strengthen its
supply chain network. The transaction is expected to close on or
before October 1, 2019 subject to
certain conditions, including regulatory approval.
On Side Restoration is a national restoration firm, based in
Vancouver, with more than 1,200
employees and 35 branches coast to coast. Its reputation for
excellent customer service along with 40 years of claims experience
makes it a strong strategic fit for IFC.
"Our claims service is a key differentiator and is at the heart
of what we promise. On Side Restoration is already an important
part of our Rely Network of preferred vendors and they have a track
record of providing excellent customer service and helping us
deliver on that promise," said Charles
Brindamour, Chief Executive Officer, Intact Financial
Corporation. "By taking ownership in the supply chain and combining
our strengths we can ensure simpler, faster and consistently higher
quality outcomes for property claims customers. This transaction
will reduce claims handling costs and provide diversification to
our property exposures with a new and counter cyclical earnings
stream," added Mr. Brindamour.
"With this agreement we are combining two leading companies who
are keenly focused on providing the highest levels of
professionalism, care, and exceptional customer service in property
restoration," said Craig Hogarth,
Founder and President, On Side Restoration. "Becoming part of the
Intact family is an exciting next step that will fuel another 40
years of growth as we continue to build our business and serve a
wide variety of clients, including other key partners and
insurers," added Mr. Hogarth.
IFC has been steadily increasing collaboration over time with On
Side Restoration to reduce cycle times and simplify processes for
an improved customer experience. Through this acquisition IFC
expects to further increase operational efficiencies and improve
customer satisfaction by reducing the duplication of processes and
controls, which will result in quick decision making and faster
completion of repair and restoration work.
The property supply chain, namely restoration services, is a
growing area of business, particularly as our communities are
experiencing more frequent weather events. Intact will gain full
ownership of On Side Restoration over a two-year period for a
variable purchase consideration which is based in part on future
profitability metrics. The purchase price will be financed from
internal resources. The acquisition will provide immediate low
single digit accretion to NOIPS, and mild accretion to ROE.
About On Side Restoration
On Side Restoration is one
of the nation's leading Canadian-owned restoration companies with
35 branches from Victoria, BC to
St. John's, Newfoundland. For the
past 40 years the company has been restoring damaged homes and
businesses 24 hours a day, 365 days a year. Proprietary internal
systems include eClaim, a transparent web-based file management
software program, and On Side LiVE, their 24 hour customizable
emergency call centre. Experienced and certified crew operate On
Side Restoration's extensive fleet of emergency response vehicles
and leverage their 13,000+ pieces of specialty equipment. Further
information about On Side Restoration can be found at
www.onside.ca.
About Intact Financial Corporation
Intact Financial
Corporation (TSX: IFC) is the largest provider of property and
casualty (P&C) insurance in Canada and a leading provider of specialty
insurance in North America, with
over $10 billion in total annual
premiums. The Company has approximately 14,000 full- and part-time
employees who serve more than five million personal, business and
public-sector clients through offices in Canada and the U.S. In Canada, Intact distributes insurance under the
Intact Insurance brand through a wide network of brokers, including
its wholly-owned subsidiary BrokerLink, and directly to consumers
through belairdirect. In the U.S., OneBeacon Insurance Group, a
wholly-owned subsidiary, provides specialty insurance products
through independent agencies, brokers, wholesalers and managing
general agencies.
Forward Looking Statements
Certain statements included
in this press release, including without limitation, the timing for
completion of the proposed acquisition, management's estimates and
expectations in relation to resulting accretion, internal rate of
return, net operating income per share, annual synergies,
operational efficiencies and risk diversification are forward
looking statements. The words "will", "expected to" and comparable
words or phrases are intended to identify forward looking
statements. Forward looking statements are based on estimates and
assumptions made by management in light of our experience and
perception of historical trends, current conditions and expected
future developments, as well as other factors that management
believes are appropriate in the circumstances.
Many factors could cause IFC's actual results, performance or
achievements or future events or developments to differ materially
from those expressed or implied by the forward looking statements,
including without limitation, the terms and conditions of, and
regulatory approvals relating to, the proposed acquisition, timing
for completion of the proposed acquisition and various other
actions to be taken or requirements to be met in connection with
the proposed acquisition and the factors discussed in IFC's most
recently filed Annual Information Form and annual Management's
Discussion & Analysis. These factors are not intended to
represent a complete list of the factors that could affect IFC.
These factors should, however, be considered carefully.
All of the forward-looking statements included in this press
release are qualified by these cautionary statements. Although the
forward-looking statements are based upon what management believes
to be reasonable assumptions, IFC cannot assure investors that
actual results will be consistent with these forward-looking
statements. When relying on forward-looking statements to make
decisions, investors should ensure the preceding information is
carefully considered. Undue reliance should not be placed on
forward-looking statements made in this press release. Except as
may be required by Canadian securities laws, we do not undertake
any obligation to update or revise any forward-looking statements
contained in this press release, whether as a result of new
information, future events or otherwise.
SOURCE Intact Financial Corporation