IFC’s Acquisition of AXA Canada: Building a World-Class Canadian P&C Insurer

On May 31, 2011 Intact Financial Corp. (TSX: IFC) announced that it would acquire AXA Canada for $2.6 billion. The result of this transaction is two of Canada’s leading property and casualty insurance companies combining forces to create a world-class Canadian-based organization.

The acquisition is expected to generate an internal rate of return of 20% and provide annual accretion to operating earnings per share of 15% in the mid-term. Financing was secured through a Subscription Receipt offering and a committed acquisition financing facility.

AXA Canada is the sixth largest home, auto and business insurance company in the country. As a result of the transaction, IFC will expand its position in Canada by increasing its direct premiums written by $2.0 billion to more than $6.5 billion.

Tuesday May 31, 2011
Intact Financial Corporation to Acquire AXA Canada for $CDN 2.6 Billion