OTTAWA, Aug. 8, 2018 /CNW/ - Canadian Broker Network (CBN), Canada's leading network of independent insurance brokers, is pleased to announce that one of its member brokerages, Smith Petrie Carr & Scott Insurance Brokers Ltd. (Smith Petrie) of Ottawa, has been purchased by a consortium of four other members.
Since being founded in 2002, CBN members have aggressively grown their businesses through acquisitions, merges, and a strong focus on organic growth. However, the sale of Smith Petrie marks the first time a CBN member faced the succession dilemma that challenges virtually every independent brokerage. Current market valuations for insurance brokerages have meant that many owners have sold to insurance companies or foreign brokerages. Courted by many, the owners of Smith Petrie in the end decided to preserve the independence of the firm by selling their equity to their CBN partners.
The purchasing members are Rogers Insurance Ltd. (headquartered in Calgary), McLean Hallmark Insurance Group Ltd. (Toronto), PBL Insurance Limited (Windsor), and Capri-CMW Insurance Services Ltd. (Vancouver and Kelowna). The remaining members of CBN retain the right to invest in the equity of Smith Petrie at a later date.
Following the closing of the transaction it remains business as usual at Smith Petrie. The firm will retain its name and location and will continue to be led by the current management team with Brian Scott remaining as President. At a later date, an employee ownership plan will be introduced to existing and new staff and growth will be supported by leveraging the relationships of the firm's current insurers.
Brian Scott, President of Smith Petrie stated, "I am very pleased for our staff and for our clients that Smith Petrie will continue under the stewardship of our long time CBN partners. This is an excellent outcome for all the stakeholders of Smith Petrie."
Daryn McLean, President of McLean Hallmark, one of the purchasing members stated, "This transaction demonstrates the strength of CBN and the determination of CBN to prosper in this time of change in our industry."
About the Canadian Broker Network
The Canadian Broker Network is a network of leading independent insurance brokerages including Cal LeGrow Insurance Limited, CapriCMW Insurance Services Ltd., Lawrie Insurance Group Inc., McLean Hallmark Insurance Group Ltd., PBL Insurance Limited, Rogers Insurance Ltd., Smith, Petrie, Carr & Scott Insurance Brokers Limited, Gemstar Holdings Ltd. o/a Sharp Insurance and Bullfrog Insurance, the industry's first digital commercial broker. Together, CBN members represent more than $1 billion in property casualty premiums as well as employee benefits and life and financial services, with over 50 offices across Canada and more than 1,500 employees.
Maturing out of a forum dating back to 2002 originally designed to exchange best practices, CBN today provides a unique alternative for members to grow and innovate their business. CBN's guiding principles of innovation, collaboration, commitment to growth, and independence ensures that members can deliver the best possible value proposition to their clients, employees, and insurer partners.
For questions around this transaction please contact any of the parties below: