Canadian Treasurer

September 10, 2012

Intact Financial Corporation completes acquisition of JEVCO Insurance Company

TORONTO-- Intact Financial Corporation, provider of property and casualty insurance in Canada, has completed its $530 million acquisition of The Westaim Corporation's (TSX: WED) wholly-owned subsidiary, JEVCO Insurance Company, a provider of specialty and niche insurance products for individuals and businesses in Canada.

The acquisition enhances Intact's position in Canada by increasing its direct premiums written by approximately $350 million on a pro forma basis and bringing its market share to 17 per cent. The acquisition will enhance the company's product offering to include insurance for recreational vehicles, such as motorcycles, snowmobiles and all-terrain vehicles, as well as commercial, surety and non-standard auto insurance.

"We are pleased to broaden our specialty line offering to individuals and businesses. The acquisition provides us with another opportunity to reinforce our commitment to the broker channel, enrich our customer value proposition and enhance our competitive position," said Charles Brindamour, Chief Executive Officer of Intact Financial Corporation.

The transaction is expected to generate an internal rate of return (IRR) above 20%, to be accretive to net operating income per share beginning in 2013 and to increase book value per share by 2.6%.

The $530 million acquisition and transaction-related expenses have been financed with the proceeds from a $237 million subscription receipt issuance, a medium term note offering and a portion of IFC's excess capital. The company expects to maintain its solid capital position with an estimated Minimum Capital Test ratio above 200% and a debt to total capital ratio below 20%.

As a result of the closing of the acquisition, the escrow release conditions for the 3,780,000 subscription receipts issued in May 2012 have been met and the subscription receipts will be automatically exchanged in accordance with their terms on a one-for-one basis for common shares of IFC through the facilities of CDS Clearing and Depositary Services Inc. In addition, a dividend equivalent payment of $0.40 per subscription receipt will also be payable to holders of subscription receipts as a result of IFC having declared a dividend of $0.40 per common share payable to common shareholders of record on June 15, 2012. Trading in the subscription receipts will be halted effective immediately and the subscription receipts will be delisted as at the close of business on September 5, 2012.

The subscription receipt conversion will increase the total number of outstanding common shares to 133.3 million, resulting in the average outstanding number of common shares being 130.6 million for the third quarter 2012 and 129.9 million for the first nine months of 2012.





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