Desjardins acquires the Insurance Company of Prince Edward Island
Desjardins, through its subsidiary Desjardins General Insurance Group, and ICPEI Holdings, have entered into definitive agreements for Desjardins to indirectly acquire all of ICPEI’s issued and outstanding shares. ICPEI Holdings operates The Insurance Company of Prince Edward Island as a wholly owned subsidiary. This move will allow Desjardins to add ICPEI’s home, auto and commercial insurance activities to its operations. Desjardins has exercised its call option to acquire these shares ahead of the original plan.
Founded in 1998, ICPEI operates in Canada and provides commercial and personal lines insurance, which is sold exclusively through the broker channel.
Desjardins acquired a minority stake in ICPEI in 2023 while sharing its interest in acquiring ICPEI over a 3 to 5 year horizon.
Subject to regulatory authority approvals and other customary closing conditions, this acquisition will enable the organization to diversify its insurance offer and better meet the needs of small and medium-sized businesses in Canada.
Commercial insurance products will be offered through insurance brokers who work with ICPEI, as a complement to Desjardins Group’s direct channel and network of exclusive agents. Desjardins’ financial strength will bolster ICPEI’s development and growth.
“With this acquisition, we’re strengthening Desjardins’ position in the Canadian commercial insurance market. We’re committed to meet the changing needs of our business members and clients across Canada, and be proactive in our support. That’s why we’re very pleased to be able to count on ICPEI’s expertise in brokerage distribution of commercial insurance to expand our reach and access new markets. With this additional expertise, I firmly believe that we’ll be able to perform even better with businesses, reinforcing our position as a key player in this segment of the Canadian market.” – Guy Cormier, President and CEO of Desjardins.
“This acquisition is clearly in line with ICPEI’s strategic goals to expand insurance distribution across the country and pave the way for even greater collaborations on the Canadian market. Desjardins is a strong financial leader, and this partnership will accelerate our growth to become a major player in insurance distribution with brokers.” – Serge Lavoie, President and CEO of ICPEI.
