BrokerLink acquires three brokerages in two provinces
BrokerLink has continued its momentum in the M&A space with the acquisition of three new brokerages, bringing its total acquisitions year-to-date to seven.
BrokerLink’s latest acquisitions include Alberta-based Direct-Line Insurance and MKMK Risk Management Inc. (MKMK Group) as well as Ontario-based Law Insurance Brokers Limited. All three deals closed May 1.
“These acquisitions increase BrokerLink’s footprint in Edmonton and six additional locations nearby, as well as Calgary, Aurora [Ont.] and Sudbury [Ont.],” BrokerLink said in a press release Friday, when it announced the transactions.
With roots tracing back to the 1940s, Direct-Line Insurance offers home, auto, farm and businesses insurance. The brokerage is located in Edmonton, Millet, Warburg, Calmar, Sherwood Park, Beaumont and Lamont.
MKMK Group has been serving Calgary and surrounding areas since 2010. It offers home, auto, commercial, life and travel insurance.
For its part, Law Insurance Brokers is one of Ontario’s oldest family-owned brokerages, established in 1914. It provides home, auto, recreational vehicle, commercial and specialty insurance, including coverage for high-risk auto, hard-to-place homes and high-value homes (up to $25 million), among others.
Michael Stack, BrokerLink’s vice president of acquisitions, says he welcomes the new brokerages and their respective teams. “We look forward to cultivating new relationships in the communities of Millet, Warburg, Calmar, Beaumont and Lamont, and serving more customers in Edmonton, Sherwood Park, Calgary, Aurora and Sudbury,” he says.
BrokerLink closed four Ontario acquisitions in March and April. In March, it acquired Owen Sound, Ont.-based Hanbidge & Bowman Ltd. Insurance Professionals. Last month, it acquired M. Edward Powell Insurance Brokers Ltd. in Oakville and Russ Bastow Insurance Broker Ltd. in Ajax. BrokerLink also acquired the personal and small-to-medium enterprise commercial insurance book of business from Ottawa-based Halpenny Insurance Brokers Ltd.
BrokerLink is a subsidiary of Intact Financial Corporation (IFC). During a 2024 Q1 earnings call last week, IFC CEO Charles Brindamour said BrokerLink “remains well on track to achieve its ambition of $5 billion in annual premiums by 2025.”
BrokerLink surpassed $3.5 billion in direct premiums written (DPW) in 2023. In April, BrokerLink president Joe D’Annunzio told Canadian Underwriter the brokerage plans to increase its DPW to $5 billion by the end of 2025.
“In Canada, BrokerLink continues to consolidate the market and successfully closed four acquisitions this quarter, representing roughly $190 million of premium,” Brindamour said during the earnings call. “The business remains well on track to achieve its ambition of 5 billion in annual premiums by 2025.
“Our distribution business remains an important and growing earnings driver.”
BrokerLink completed 20 M&A deals in 2023.
Feature image by iStock.com/NISIT RAWO
