Insurer acquires car warranty company

Quebec-based insurer iA Financial Group has acquired car warranty group Global Warranty.

Global Warranty is an independent warranty provider serving Canada’s used vehicle market and provides protection to customers with insured warranty packages. Founded in 1987, and headquartered in London, Ont., the company does business with a network of more than 1,500 automotive dealerships and more than 400 authorized repair centres across the country.

“We couldn’t be more pleased with the acquisition of Global Warranty,” says Gwen Gareau, senior vice president of iA Dealer Services and iA Auto Finance. “It is a well-run organization with a strong reputation and we are pleased to welcome this highly professional team into iA Financial Group.

“This will increase our presence in the used vehicle warranty market, with long-standing operations in London, where our subsidiary Lubrico Warranty is also based.”

Lubrico Warranty also provides vehicle protection products and used car warranties for “any make, model, year or mileage,” according to its website.

“The acquisition of Global Warranty fits perfectly with iA Dealer Services’ growth strategy,” says Pierre Miron, iA Financial Group’s executive vice president and chief growth officer for Canadian operations. “We have been in the vehicle warranty business for over 60 years and we believe strongly that the used car market is an important segment for growth.

“Future growth and synergies with Global Warranty look very promising,” Miron adds.

Global Warranty CEO and president Roy Neufert says the company chose to sell its business to iA Financial Group because of their long history in the warranty business. iA also has relationships with more than 10,000 new and used car dealerships, Neufert adds.

In 2022, Global Warranty said Arch Insurance would be the primary underwriter for its ULTIMATE warranty programs across Canada. Arch Insurance was already the company’s underwriter for GAP (guaranteed asset protection) insurance.

Founded in 1892, iA Financial Group is one of the largest insurance and wealth management groups in Canada, with operations in the United States.

Effective immediately, this acquisition will be slightly accretive from the first year, both on a core and reported basis, the insurer says. The impact on iA Financial Group’s solvency ratio is a one percentage point decrease.

 

Feature image by iStock.com/NongAsimo