Desjardins Acquires State Farm Canada’s Business

Posted on January 16, 2014 and updated January 21, 2014 in Canadian Life Insurance Companies, Desjardins Financial Security, Life Insurance Canada News 2 min read
desjardins State Farm

Desjardins Financial has agreed to purchase the Canadian life insurance and P&C business of State Farm Canada, as well as as its mutual fund, loan, and living benefits business.

Obviously subject to regulatory approval, the deal is expected to officially close a year from now, in January 2015. Desjardins will operate State Farm’s business in Canada under the State Farm brand for an agreed-upon period afterward.

The deal will make Desjardins the fourth largest life and health insurance company and the second largest P&C insurer in Canada. Currently, State Farm Canada uses a captive agent sales force to sell insurance products in Ontario, Alberta, and New Brunswick.

LSM’s Take

Desjardins has a very strong life and living benefits insurance lineup.

It has a wide variety of Term and Permanent life insurance policies, and these plans can be bundled with its critical illness offerings.

The company offers a slew of riders on its life insurance plans, including disability insurance, accidental death or dismemberment coverage, accidental fracture coverage, coverage for the insured person’s spouse or children, guaranteed insurability, and a premium waiver in the event of disability.

Desjardins is also one of only a handful of Canadian Life Insurance carriers to offer Long-term Care Insurance. It is an innovative company that launched the first life insurance/long-term care hybrid product on the Canadian market in September 2013. This feature is available on its universal life PlatformPace policy. The product is Term 100 permanent life plan with an option that offers insured individuals age 65 and over with a ‘loss of independence’ monthly benefit equal to 1% of the life insurance amount.
 

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