RBC, Manulife make travel insurance deal

Manulife Financial has entered into an agreement to reinsure the travel insurance coverage sold by RBC Insurance through travel agencies, the company announced Wednesday.

The deal will also include transitioning RBC’s sales and distribution support for its travel agency insurance business to Manulife. Travel agencies will also be able to renew their agency agreements with Manulife once their existing ones with RBC expire.

RBC will continue to be the insurance provider to the travel agencies until the expiration of the current travel agency contracts.

The arrangements are not subject to regulatory approval and are expected to begin during the third quarter of 2013. Financial terms of the business arrangements were not disclosed.

“This transaction provides a unique opportunity to reinforce our leading position in the Canadian travel insurance business by expanding our reach and presence within the travel agency insurance market,” noted Brian Gooding, senior vice president and general manager for Affinity Markets at Manulife Financial. “The travel agency channel is an important part of our strategic growth plan, enabling us to serve many more Canadians and meet their travel insurance needs.”