Broker networks position

Broker consolidator Equisure Financial Network Inc. (TSE: EFN) has in partnership with the ING group launched a new general insurance company to be licensed across Canada. Ownership of the new insurer, Northbrooke General Insurance Company of Canada, will be equally held by Equisure and ING Canada P&C Inc.

Equisure president George Hutchison says Northbrooke will operate as a specialty underwriter serving the broker network exclusively. William Breckles, former COO of Commercial Union Assurance Company of Canada, has been appointed president of Northbrooke. Hutchison expects provincial licensing approval for the new insurer will come through by the end of the year. Northbrooke joins a group of underwriting and product developer operations owned or part-owned by the network, including Equisure Trust Company, Equisure Securities Ltd., and Internet interests efniCONNECT and moneyramp.com.

Northbrooke’s annual premium volume target for the next one and a half to two year span is $20 million, says Hutchison. He points out that the premium flow through the insurer will comprise only about 5% of the network’s current premium volume of $400 million. “We’re still fully supportive of all our markets [carriers serving the network], and will use Northbrooke for underwriting specialty programs. The operation provides us with greater flexibility in designing products.”

In terms of the partnership with ING in the creation of Northbrooke, Hutchison comments, “we felt that, from a product creation standpoint, ING ranks at the top in expertise”.

Hi-Alta restructuring

Western provincial consolidator Hi-Alta Capital Inc. (TSE: HIA) has revealed plans to restructure its network into three business units, the objective being to strengthen day-to-day operational management, says president Scott Tannas.

The network’s property and casualty offices (representing over 90% in value of group assets) will operate under the umbrella name of Western Insurance Network Inc. (WIN). Linda Lively, whose brokerage was the second acquisition made by Hi-Alta after its inception, has been appointed president of WIN.

The other two business units will form the network’s financial services product development and other business interests of real estate and travel agencies, says Tannas. The need for restructuring arose from rapid expansion of the network, he adds. “The number of office locations has grown enormously and we needed stronger management focus. So far we’ve concentrated on acquisitional growth, but the time has come to add the necessary value to the network’s operations. Our sector has become a bit of a graveyard of operators who have not done that.”