Manulife has now completed acquisition of the channel’s largest creditor insurance provider, at the same time restating plans to expand broker business.
"We look forward to continuing to deliver excellent solutions to both the mortgage industry and Canadian borrowers and to further building a leadership position in the mortgage creditor marketplace, particularly among mortgage brokers," said Wally Thompson, Manulife’s VP of business development. “Strategically, this transaction positions us well for growth in a highly-stable, key Canadian market.”
The assessment follows the insurance giant’s completed purchase of Benesure Canada, a transaction positioning Manulife as Canada's largest provider of mortgage insurance solutions for mortgage brokers, “with revenue premiums in excess of $65 million.”
The deal initially raised some broker eyebrows, chiefly concerns about the potential poaching of clients.
Manulife was quick to answer that speculation.
“We want to reassure those who have such concerns that they have nothing to worry about,” said Elizabeth Elliot, VP of marketing for Benesure, now under the insurance and mortgage giant’s umbrella. “It is in Manulife’s and Benesure’s interest to ensure the channel continues to flourish with MPP.”
Elliot also points to Manulife’s strong track record of working closely with advisors and intermediaries.
“They are governed by privacy rules and have always abided by these,” she said. “In doing so, they understand, respect and honour business relationships and client information that Benesure has developed.”
Still, Manulife has suggested it is open to exploring the idea of mortgage originations by brokers, a move many within the channel welcome.