Intact inks deal for The Guarantee Co of North America and Frank

The Canadian Press Companies in this story: (TSX:IFC) TORONTO — Intact Financial Corp. has signed a deal to buy The Guarantee Co. of North America and Frank Cowan Co. Ltd. from Princeton Holdings Ltd. for $1 billion in cash.The Guarantee is a specialty lines insurer in Canada and the U.S., while Frank Cowan is a managing general agent focused on specialty insurance.Intact is a provider of property and casualty insurance in Canada and a provider of specialty insurance in North America.The company says the acquisition will bolster its position and add new products for the high net worth customer segment.Princeton Holdings will continue to own Cowan Insurance Group, Cowan Asset Management and Fountain Street Finance.To finance the transaction, Intact says it has access to its own capital resources and bank facilities and may evaluate capital markets alternatives.“The acquisition of The Guarantee Co. of North America and Frank Cowan Co. is strongly aligned with our strategic and financial objectives,” Intact chief executive Charles Brindamour said in a statement.“We are delivering on our objectives to grow in Canada and build a leading North American specialty platform. I’m enthusiastic about what we will accomplish by leveraging the combined expertise of our teams and our expanded offering.”The deal, which is subject to regulator approvals, is expected to close in the fourth quarter of this year.Specialty lines insurers typically underwrite more difficult and unusual risks or higher-risk accounts, such as professional liability, marine and aviation. read more