Manulife buys Pottruff & Smith travel insurance company

Manulife becomes Canada's second largest travel insurer after the all-cash acquisition

Travel Insurance News - 19/10/2009

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Manulife Financicla, Canada's biggest life insurance firm has now become the country's second biggest travel insurer, after it bought over Pottruff & Smith Travel Insurance Brokers Inc last week.

The all-cash deal was Manulife's second big acquisition sine August this year. In that month, Manulife took over AIC Ltd's Canadian retail investment fund business.

Manulife Chief Executive, Donald Guloien had stated after the first acquisition that the strategy was to expand by taking advantage of suitably priced targets both in Canada and the US. The value of either deal has not been disclosed.

This deal will represent Manulife's most significant growth in the travel insurance field, now placing it second only to RBC Insurance in Canada.

Pottruff & Smith, based in Woodbridge Ontario is one of the largest Canadian travel insurance brokers and third-party administrators. The firm specialses in providing travel insurance for the leisure sector. The deal is expected to be officially complete on November 2 this year, after which Pottruff & Smith’s 90 Ste-Therese and Woodbridge-based employees will become part of the Manulife workforce.

A company representative for Manulife has said the acquisition of Pottruff & Smith was aimed at positioning Manulife among the top two travel insurance players in Canada. The company is also the fourth-largest life insurance company in the world.

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