Desjardins Group completes the acquisition of State Farm's Canadian operations

Jan 29, 2015
Desjardins Group

Desjardins Group announced on January 2 that the acquisition of the Canadian operations of State Farm casualty insurance and life insurance as well as its mutual fund companies, loans and insurance living benefits has been completed.

Desjardins said their volume of annual gross premiums will rise from more than two billion dollars in 2014 to more than four billion dollars in 2015 because of this deal.

"Similarities between our two organizations are numerous," said Monique F. Leroux , Chair of the Board, President and CEO of Desjardins Group. "We are thousands who are close and committed to millions of customers. I am confident that our shared values, our passion and commitment to our work will allow us to better serve Canadians, together. This gives me tremendous confidence in the future."

State Farm's more than 1,900 Canadian employees and network of close to 500 agents will continue to serve over 1.2 million customers in Ontario , Alberta and New Brunswick . "Our financial investment reflects our confidence in the strength of the combined businesses going forward.  Desjardins' cooperative mission and customer focused values will benefit Canadian customers," said Edward B. Rust Jr. , State Farm Chairman and Chief Executive Officer.

As part of the agreement, State Farm invested $450 million in non-voting preferred shares into Desjardins Group's post-closing property and casualty insurance businesses.

Desjardins Group allocated C$700 million in capital to support the growth of its P&C business. Desjardins Financial Security (Desjardins' Life and Health Insurance subsidiary) with other business units also allocated C$250 million in capital for the life insurance, mutual fund, loan and living benefits components of the agreement.