Definity increases ownership interest in P&C broker McDougall Insurance

Definity’s total investment in McDougall is now at $251 million.

McDougall, founded in 1946, is one of Ontario’s largest P&C insurance brokerages. It represents over 50 insurance companies and has more than 40 branches in the province, with over 450 employees. Definity and McDougall first entered their longstanding partnership through an initial equity investment in 2017.

Since that initial investment, McDougall has completed 14 broker acquisitions and more than doubled its annual premium base to about $500 million.

“With growing revenue and robust operating margins, McDougall is a strong franchise that we believe has an even brighter future ahead of it,” said Definity president and CEO Rowan Saunders. “We have been equity partners with McDougall for over five years, and are excited by the opportunity to expand that partnership and build on their track record of success. We admire their entrepreneurial culture, their ability to attract talent and their capacity to grow the business, both organically and via proven acquisition capabilities.”

“We are excited to strengthen our partnership with Definity, which we believe will enable us to accelerate our growth plans and further our ambition to reach an annual premium base of $1 billion,” added McDougall CEO Ross McDougall. “This growth aspiration will provide more opportunities for our employees and also strengthen our value proposition for our customers.”

Chief executive McDougall added that the “unique structure” of the partnership will allow his company to maintain and expand its operations, while offering a home for more brokers to join its fold.

Together with McDougall’s operating income and its other broker investments, Definity said that it expects to generate operating income from them in excess of $40 million annually, before taxes and minority interests.