Levis, Que.-based Desjardins Group says it completed the purchase of State Farm Canada’s businesses in property and casualty and life insurance, as well as its Canadian mutual fund, loan and living benefits companies, on January 1.
As a result, Desjardins Group becomes the second largest P&C insurance provider in Canada with annual gross written premiums increasing from over $2 billion in 2014 to more than $4 billion projected in 2015, the financial cooperative says.
The transaction also increases the Desjardin’s geographic diversification of earnings and risk, while providing an advantage of scale and strengthens its position among life and health insurers in Canada, the the group noted in a news release.
State Farm’s more than 1,900 Canadian employees and network of close to 500 agents will continue to serve over 1.2 million customers in Ontario, Alberta and New Brunswick.
Desjardins says it still expects the transaction will lead to job creation in the coming years in Canada, including in Quebec.
Desjardins will continue to operate its other insurance brands separately across the country.