Allianz Global Assistance Canada, TIC merge travel insurance businesses

Allianz Global Assistance Canada and TIC Travel Insurance Coordinators, with its subsidiary SelectCare Worldwide, have merged their travel insurance businesses in Canada, the firms announced Tuesday.

Financial terms of the deal were not disclosed.

Once closed, the combined entity – operating as Allianz Global Assistance – will be one of the largest travel insurance providers in Canada, according to its statement. The deal is targeted to close by the end of the year.

Allianz Worldwide Partners S.A.S., the parent company of Allianz Global Assistance Canada, will own 55% of the combined legal entity and AZGA Service Canada Inc. Co-operators Life Insurance Company will have an ownership stake of 45%, based on relative economic valuations, according to the statement.

Daniel Wichels, chief financial officer of Allianz Global Assistance for the Americas, will become the CEO of the combined business. A subsidiary of The Co-operators will become the lead underwriter, the statement added.

“Bringing together these two companies, with their complementary strengths, will create a very competitive company with great potential for future growth as a leader in Canada’s travel insurance industry,” Kathy Bardswick, president and CEO of The Co-operators Group Limited, the ultimate parent company of TIC, added.

“Existing clients will continue to benefit from the strong relationships they currently enjoy with the two companies, while the combined entity will offer all clients expanded product offerings and enhanced service capabilities.”

TIC has a network of more than 8,000 brokers and travel agencies throughout the country. Allianz Global Assistance also has a global network of providers servicing 250 million people.

The combined entity will incude more than 600 employees and the offices of both companies will remain open, according to the statement. “There will be no changes to coverage or interruption in services to clients during the integration period,” it added.

“This merger capitalizes on the similar values and client approach of two leading providers in the Canadian travel insurance market, resulting in a combined entity that is truly greater than the sum of its parts, and poised for substantial growth,” Remi Grenier, CEO of Allianz Global Assistance worldwide commented in the statement.