The latest merger and acquisition activity in the Canadian mutual space has one U.S. mutual insurer acquiring a Canadian crop hail insurance provider, and three Ontario mutuals amalgamating in a separate deal.
On Feb. 4, Farmers Mutual Hail Insurance Company of Iowa (FMH) reported the acquisition of Palliser Insurance, a crop hail insurance provider headquartered in Saskatoon, Sask.
It is Palliser’s first acquisition of a non-U.S.-based company, the 132-year-old family-owned mutual says in a statement.
“I am excited about this partnership and the impact it will have as we continue to expand and diversify our footprint,” FMH president and CEO Shannon Rutledge says. “The regional expertise, knowledge, and accomplishments that the Palliser team brings with them will contribute to our long-term strategy of strengthening and enhancing our core crop insurance business.”
Palliser offers crop hail insurance across Western Canada, “supported by the industry’s largest network of agents and adjusters,” FMH says.
FMH provides comprehensive risk management solutions, including private and federal crop insurance, reinsurance and brokerage services.
FMH previously had a 20% share in Palliser, with FMH leaders serving on its board of directors. For more than three decades, Palliser has been a partner of FMH, and the West Des Moines, Iowa-headquartered company will continue to support Palliser’s ability to expand and grow its relationships.
“FMH has been a valued business partner with Palliser since 2008, recognizing and respecting our important legacy, role, and dedication to serving the Western Canadian agricultural community,” says Ken Doleman, Palliser’s president & CEO. “Our common culture and shared values, combined with FMH’s long-standing expertise in crop insurance, will serve to strengthen our deep commitment and value-added approach to service excellence.”
On Feb. 5, three Ontario mutuals — Caradoc Townsend Mutual, Grenville Mutual and Lambton Mutual — announced the signing of a pre-amalgamation agreement, “marking the beginning of a strategic partnership to enhance their service offerings while preserving strong local ties,” the mutuals say in a press release.
The proposed amalgamation brings together mutuals with more than a century of personalized insurance service across home, auto, farm and small business insurance segments.
A joint committee of board members, CEOs and advisers will proceed with a thorough due diligence phase, ensuring all decisions prioritize policyholders, support employees, empower brokers and agents, and reinforce community connections, the mutuals announced.
It’s not clear when the amalgamation will come into effect.
The proposed deal is subject to approval from each company’s policyholders, regulatory approval by the Financial Services Regulatory Authority of Ontario, and the consent of the companies’ partners: the Ontario Mutual Insurance Association, Farm Mutual Reinsurance Plan Inc. (Farm Mutual Re), and the trustees of the Fire Mutuals Guarantee Fund.
Feature image by iStock.com/Elenathewise
