Intact Financial Corporation will invest
$1.5 billion in
technology in Quebec
over five years
MONTREAL, Nov. 18, 2020 /CNW/ - Intact Financial
Corporation (TSX: IFC) today announced that, together with Tryg A/S
(Tryg), it has reached an agreement for the acquisition of RSA
Insurance Group plc (RSA). Pursuant to the transaction, IFC will,
with the support of Caisse de dépôt et placement du Québec (CDPQ),
acquire RSA Group's Canada, UK and
International operations and co-own RSA Group's Danish business
with Tryg. To support its customer driven digital strategy and the
growth resulting from the acquisition and integration of these
operations, IFC will invest $1.5
billion in technology in Quebec over the next five years. This
acquisition will also significantly increase the role and influence
of several strategic teams based in Quebec, consolidate IFC's significant economic
impact in the province, and increase that impact through these
additional investments.
"Intact Financial Corporation has its roots in Quebec," said Charles
Brindamour, CEO of Intact Financial Corporation. "While our
success now extends well beyond Quebec's borders, we still run a significant
portion of our North American operations there. With the support of
CDPQ, our acquisition of RSA will create additional demands and
opportunities for the teams supporting our global operations;
coupled with our future tech investments, this will provide a
significant and lasting boost to the expansion of our strategic
teams based in Quebec."
"We've been partners with Intact Financial Corporation for over
10 years," said Charles Emond,
President and CEO, CDPQ. "Our investment has yielded positive
returns for our depositors, thanks to the company's strong track
record of successfully integrating the companies they have
acquired. We're delighted to support this new acquisition, which
will provide new growth opportunities for IFC, strengthen its
leading position in Canada, and
have a significant impact in Quebec's financial and technology
sectors."
Additional investments in cutting-edge tech
sectors
IFC's growth is based on a long tradition of
innovation and investments in technology that will accelerate with
the acquisition of RSA. IFC will invest $1.5
billion over the next five years to support and grow the
work of its digital, tech and AI development labs and software
engineering teams. These Quebec-based teams will expand their scope and
responsibilities as a result of the company's growth and
international operations, and to do this they will be hiring new
talent. Over the next five years, more than 1,500 Quebec experts in user experience, design,
mobile and software engineering, cybermetrics, machine learning and
AI will work on developing and improving the digital customer
experience, in addition to using technology to improve the
efficiency of the company's global operations.
Quebec talent driving growth
for Intact and the Quebec
economy
A number of IFC's core operations are based in
and directed from Quebec. The
company has major teams that not only serve Quebecers, but also the
rest of Canada and divisions
across North America. Most of
these teams will see their operations expand as the company's
international growth creates additional demands.
This includes the Intact Investment Management team, which will
lead the company's global investment operations and see its assets
under management grow from $20
billion to $40 billion.
These expanded responsibilities for the Quebec-based teams will also enable IFC to act
as a talent accelerator by providing even more high-calibre job
opportunities for the next generation of Quebec university graduates, particularly in
the actuarial, finance, technology and AI sectors.
IFC: A major employer rooted in the local
economy
Since its beginnings in Quebec in 1907 (for the legacy company of
Intact Insurance) and 1955 (for belairdirect), IFC has continued to
grow steadily across the province in terms of its number of
employees, investment, market share and community engagement.
IFC in Quebec today:
- Over 5,000 employees in its Montreal, Anjou, Québec and Saint-Hyacinthe offices
- Nearly one in three Quebecers and nearly one in four companies
are insured through our Intact Insurance and belairdirect
banners
- More than 530 property and casualty insurance broker partners
of all sizes located across Quebec
- $1.6 billion in claim payments to
Quebec customers, contributing to
the province's economic vitality by mobilizing the home restoration
and renovation and automotive repair industries
- Collaboration with several major Quebec universities, including Université
Laval, Polytechnique, Université
de Sherbrooke, ETS and and the
Institut de valorisation des données (IVADO), a collaboration
between HEC Montréal, Polytechnique Montréal and Université de
Montréal.
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 CAD$11 billion in total annual
premiums. The Company has approximately 16,000 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. Frank Cowan Company, a
leading MGA, distributes public entity insurance programs including
risk and claims management services in Canada.
In the U.S., Intact Insurance Specialty Solutions provides a
range of specialty insurance products and services through
independent agencies, regional and national brokers, and
wholesalers and managing general agencies. Products are
underwritten by the insurance company subsidiaries of Intact
Insurance Group USA, LLC.
About CDPQ
Caisse de dépôt et placement du Québec (CDPQ) is a long-term
institutional investor that manages funds primarily for public and
para-public pension and insurance plans. As at June 30, 2020,
it held CA$333.0 billion in net assets. As one of Canada's leading institutional fund managers,
CDPQ invests globally in major financial markets, private equity,
infrastructure, real estate and private debt. For more information,
visit www.cdpq.com, follow us on Twitter @LaCDPQ or consult
our Facebook or LinkedIn pages.
Cautionary note about forward-looking statements
Certain of the statements included in this press release
constitute forward-looking statements. They include statements
relating to, among other things, IFC's offer to acquire RSA, its
integration and growth plans, and its investment and hiring
intentions in Quebec and in the
digital, technology, AI development and software engineering
sectors over the next five years. Forward looking statements
often use words such as "believe", "expect", "estimate", "intend",
"anticipate" and words of a similar meaning. 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. Investors should not rely on forward-looking statements
to make decisions, as they are subject to risks and uncertainties
about IFC and are dependent on many factors, some of which are
outside of IFC's control. Investors should ensure the preceding
information is carefully considered when reviewing forward-looking
statements contained herein. The Company and management have no
intention and undertake no obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by law.
SOURCE Intact Financial Corporation