Meloche Monnex Inc. is acquiring the Canadian personal lines property and casualty operations (automobile and homeowners insurance) of Boston-based Liberty Mutual Group in a deal that makes the Montreal-based company Canada’s largest direct-response property and casualty insurer and one of the country’s top four p&c insurers in personal lines.

“This acquisition will solidify Meloche Monnex’s position as an insurance leader through the addition of a broad-based clientele while strengthening our employer group market share,” said Alain Thibault, president and CEO of Meloche Monnex. “In addition, it will reinforce our existing presence in strategic markets, particularly Ontario. Liberty Mutual’s expertise will also complement that of our own personnel.”

Meloche Monnex is part of the TD Bank Financial Group. The company said the deal will add value “slightly” to its parent’s earnings in 2004. The deal, terms of which were not disclosed, is expected to close in April 2004.

With the acquisition, Meloche Monnex will have more than 1.3 million policyholders with a total of $1.4 billion in written premiums.

Liberty Mutual’s North American personal lines property/casualty growth strategy “is primarily focused on our U.S. operations, where we have the scale to operate most efficiently for our customers — something we do not have to adequately address the complexity of the Canadian insurance market,” said J. Paul Condrin III, Liberty Mutual executive VP, personal market. “We expect Meloche Monnex will deliver the same superior service to our customers, and rewarding growth opportunities for our employees that each have been accustomed to from Liberty Mutual.”

http://www.newswire.ca/en/releases/archive/January2004/20/c1575.html