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Tuesday, May 31, 2011

Intact to acquire AXA's Canada arm for C$2.6 bln, (TSE: IFC)

Intact Financial Corp (IFC.TO) has agreed to purchase the Canadian arm of AXA Group for C$2.6 billion ($2.68 billion) in cash in a move that will boost its premiums by more than 40 percent and diversify its product mix. The deal to acquire AXA Canada, the 6th largest home, auto and business insurance company in the country, will increase its direct premiums in Canada by C$2 billion to more than C$6.5 billion. The acquisition will enable Intact, already Canada's largest provider of property and casualty insurance, to expand its commercial business, particularly in the midmarket segment, and strengthen its presence in Atlantic Canada as well as in the provinces of Quebec and British Columbia. "The acquisition creates new opportunities for IFC as it will strengthen our offerings, notably in business insurance," Intact Chief Executive Charles Brindamour said in a release on Tuesday announcing the deal with Paris-based AXA.