Brokerage outlines upcoming acquisition plans
Brokerage AMC Insurance Services Ltd. is continuing its acquisition plans with two upcoming deals in November and several others in the pipeline, brokerage vice president Jujhar Singh Parmar tells Canadian Underwriter.
Surrey, B.C.-based AMC Insurance recently completed its 15th deal in September by acquiring family-owned and operated brokerage Western Associated Insurance Brokers Ltd. in Vancouver. The small boutique brokerage’s website says it offers expertise in all areas of personal and commercial insurance, marine and travel.
Effective Nov. 1, two other home, auto and commercial insurance brokerages will come into the AMC fold, Parmar tells Canadian Underwriter in an interview. The deals will involve four locations in Lower Mainland B.C.
“They’re thinking that as consolidation increases, economies of scale are more important now than they’ve ever been,” Parmar says, adding the brokerages will also be able to tap into AMC’s group insurance offerings. “We’re able to get more preferred underwriting capacity, meaning response times are faster, [along with] dedicated resources and underwriting contacts…”
One upcoming deal involves a retirement “and the other one wants to join a bigger organization where they can see that their legacy is going to continue,” Parmar adds.
In late January, Parmar told CU his B.C. brokerage was looking to expand outside its home province, with particular interest in Alberta and Ontario. He said at the time AMC had a few acquisition targets in mind in Ontario.
It appears that interest remains, as Parmar says he’s looking at three large, independent P&C brokerages in Ontario, one in Alberta, another in Manitoba from an organic growth perspective, as well as a large group insurance firm.
“Some of these are like 50 employees, so it will be a sizable operation,” Parmar says. “It’ll take us to new heights, solidifying us as a national.
“So, we certainly have [irons] in the fire,” he adds. “We have very exciting things coming up in the pipeline.
“We’re not a national player yet, but these are all in different provinces.”
The goal is to present AMC as a one-stop shop with roots in brokerage independence. For Parmar, it’s more about bringing in the right infrastructure and e-management tools than premium. “Just to push us as that boutique, competitive, independent brokerage…”
That said, AMC is very picky when it comes to deals.
“I passed on a digital brokerage,” Parmar reports. “I passed on a group benefit one in a specific, niche industry. I passed on an MGA.”
But the brokerage still has capital and runway to make deals, Parmar says. “We have other opportunities presented to us, and we are actively looking for more.”
Feature image by iStock.com/skynesher
