ING Buys Allianz, Launches IPO

Ending weeks of speculation, ING made official its purchase of Allianz of Canada Inc.

The Allianz portfolio of p&c business includes subsidiaries Allianz Insurance Co. of Canada and Trafalgar Insurance Co. of Canada (which handles group business), as well as broker consolidator Canada Brokerlink, which operates in Ontario and Alberta.

The new business, which includes personal lines and small-to-medium commercial risks, will add $600 million in gross written premiums to ING’s book. As well, 800 Allianz employees and 525 Canada Brokerlink employees will make the move to ING.

“The acquisition allows us to continue expanding our activities within the p&c insurance industry, especially in Ontario and Alberta,” says Claude Dussault, CEO of ING Canada.

Allianz Global Risks will remain in Canada, granted a federal license as a branch of the U.S. business. Among its offerings will be commercial property, engineering/course of construction, casualty and commercial fleet auto business, with plans to expand this product line in future.

In other ING news, ING Canada Inc. has filed a prospectus to make an initial public offering of common shares. The IPO, which does not include ING Direct, would be used in part to fund ING’s acquisition of Allianz, as well as to repay funds to parent ING Groep NV. After the offering, ING Groep NV will hold a significant controlling interest in ING Canada.