Another P&C broker invests in firm offering wealth products

A trend whereby property and casualty (P&C) insurance brokerages acquire or partner with health insurance and investment product brokerages continues apace.

Ancaster, Ont.-based StoneRidge Insurance Brokers (SIB) announced late last month it has partnered with All-Risks Insurance Brokers Ltd.

All-Risks, based in Windsor, Ont., has operated for 70 years. It has 74 locations province-wide, offering P&C, life and health coverages, as well as investment products. The deal marks SIB’s sixth of 2024, which includes four acquisitions and partnerships with two joint-venture brokerage offices.

SIB, founded in 1945, operates out of more than 140 offices across Canada. The firm’s website notes StoneRidge seeks investment opportunities to acquire 50% to 100% of insurance brokerages looking to grow and maximize profits.

“Entering into a partnership with All-Risks presented a great opportunity for SIB to expand our offerings and to ensure we have a solution for all entrepreneurs,” said SIB CEO and president Ted Puccini.

SIB noted in a June 25 press release that it was attracted to All-Risk’s entrepreneurial culture, ability to attract top talent and capacity to grow the network. All-Risk’s most recent posted gross written premium was $325 million, according to the release.

“All-Risks has established a strong reputation as an insurance leader within the communities in which they operate, and we look forward to the opportunity to work together to continue building on their immense success to date,” Puccini added.

Expansion opportunities

All-Risks president Paul Lemmon noted the partnership will allow the firm to maintain focus on customer service, “provide service from a greater range of markets and to provide complete solutions for all our broker partners.”

Following SIB’s investment, All-Risks will continue to be led by Paul and Kim Lemmon and the current management team will remain in place. “Paul and Kim will also continue as shareholders of All-Risks,” the press release said, and added “SIB is excited to welcome over 70 affiliate brokerage partners to the network.”

Two years ago, Canadian Underwriter sources began pointing out rising instances of P&C brokers acquiring wealth management, financial planning and employee benefits firms to diversify their product offerings.

At the time, they told us that while large banks had acquired many Tier-1 independent wealth management firms over the past 20 years, numerous smaller firms specializing in wealth and retirement benefits remained privately owned.

Larger, well-capitalized P&C brokers exploring cross-selling opportunities initially acquired health insurance benefits firms during the 2010s. Retirement and wealth management firms were a logical next step, they said.

Plus, P&C firms’ merger appetite coincided with the fact that principals at many independent wealth management firms across Canada were nearing retirement age. That trend created a ripe acquisition pool and also gave P&C brokerages access to much-needed new talent.

Feature image courtesy of iStock/claudenakagawa