Onlia acquired by PE firm focused on Canadian P&C distribution

Southampton Financial Inc., a private equity firm focused on the Canadian property and casualty insurance distribution space, has agreed to acquire Onlia Insurance from Achmea and Fairfax Financial Holdings Ltd.

Headquartered in Toronto, Onlia is a digital insurance agency that has built a rapid presence in the Ontario marketplace with its direct-to-consumer brand. Its integrated digital platform enables the purchase and management of car and home insurance policies entirely online.

Onlia’s policies are underwritten by Verassure Insurance Company, which is part of the Achmea and Fairfax Financial group of insurance companies.

Achmea signed an agreement with Fairfax Financial, a Canadian holding company, in June 2018 to jointly provide a fully digital property and casualty insurance proposition under the new Onlia brand. In Canada, Onlia operated on the fully online IT-platform of InShared, the digital P&C insurer of Achmea.

Achmea is the largest insurance group in the Netherlands, where it offers similar digital non-life insurance propositions.

Southampton’s platform companies include Alteri Insurance, a full-service brokerage that serves customers in B.C. and Alberta, and aha Insurance.

“We are very pleased to bring Onlia into our portfolio of companies and look forward to driving further innovation and accelerating growth, in combination with other companies within the [Southampton] group,” Brian Reeve, founder and CEO of Southampton, comments in a release.

“Southampton intends to offer consumers a broad suite of products from both the aha Insurance and Onlia brand.”

Southampton is strategic investor in the Canadian P&C distribution space. It provides oversight, strategic guidance, access to capital, new markets, and various support services, including an IT platform. The PE firm partners with entrepreneurs who own insurance brokers and MGAs and who want the benefits of participation on the Southampton platform.

Southampton acquired aha Insurance in December 2023. Headquartered in Waterloo, aha Insurance is one of the first insurance brokerages in Canada to offer quote, purchase, and management of car and home insurance policies entirely online.

“For the past six years, aha has focused on bringing digital solutions to the Canadian insurance landscape through our innovative brokerage platform,” Steve Livingstone, CEO at aha Insurance, said of the deal with Southampton in December.

“The transaction with Southampton marks a significant milestone for our young company as we will tap into a much larger platform with significant resources and talent to bring a broader range of products and services, all with the goal of greatly accelerating our growth strategy.”

With the acquisitions of Onlia and aha, Southampton appears poised to create an even larger digital distribution footprint in Canada, a fact not lost on Livingstone.

“We welcome Onlia as a member of the [Southampton] group and look forward to working with them to build a leading edge Canadian integrated on-line insurance platform,” he said.

Southampton’s deal with Onlia targets a close date of no later than Apr. 30, Southampton said.

The Onlia acquisition includes the brand name, the customer base, and the addition of talent and on-line experience gained from Onlia.

Feature image courtesy of iStock.com/Dilok Klaisataporn