Brokers will effectively move closer to one of the country’s largest insurance companies, with its purchase of the industry' s largest creditor insurance player.
“While one never knows exactly how a new acquisition will ultimately play out,” Benesure’s Kelly Price told MortgageBrokerNews.ca, “I can't help but think about all the ways in which our having access to Manulife's significant capital, expertise and other resources will be able to translate into new benefits for our broker clients."
Brokers are no doubt wondering the same following the announcement ownership of the channel’s biggest creditor insurance provider, Benesure, will transfer to one of the country’s largest insurance companies -- one that fiercely competes in the mortgage business.
“Strategically this is an important purchase for Manulife,” said Gavin Robinson, senior VP and general manager for Manulife Affinity Markets. “Establishing a leadership position in the mortgage creditor insurance market and expanding our reach among mortgage brokers represents an opportunity for growth in a highly stable key Canadian market.”
Financial terms of the deal were not released.
The Kleinburg, Ont.-based Benesure, which employs more than 50 people across the country, currently earns more $65 million in premiums from more than 170,000 clients, according to Manulife.
“The combined expertise and capabilities of the two organizations will also enable us to leverage other areas of our business to provide additional distribution opportunities to other products,” said Robinson.
Manulife and Benesure have been business partners for many years – with Manulife providing product, pricing and underwriting services, while Benesure administers and distributes its Mortgage Protection Plan and Credit Security Plan products across Canada.
In February this year, Benesure extended its already wide reach by inking a deal with VERICO to become the preferred creditor insurance provider for the network’s 2,100 originators.