16 June 2017 07:00
Jean-Pierre Tardif, president and CEO of Assurancia Groupe Tardif
By acquiring the firm ofAlain Du Sault, Jean-Pierre Tardif has boosted the volume of premiums of his business to $ 42 million ($M).
Tardif had entrusted the Log of the insurance at the end of 2015 thatAssurancia Groupe Tardif would carry out an acquisition in the fourth quarter of 2016. It finally took place in the first quarter of 2017, the time to address some aspects related to the financing thereof. In an interview to the Journal of insurance, he said that this is one of the transactions in which he is most proud of.
«Alain and I have known each other for a long time. We always have atoms in common. I’ve always had a lot of respect for his cabinet, ActiPrima Insurance and financial services. This is a firm that was not making waves, but which showed a growth year after year. It was a long time that we did, to the point that the starting scenario was to merge our companies. Alain has finally decided to opt for a sale. It suited me too, » he said.
Increased presence in Chaudières-Appalaches
For Tardif, one of the advantages of this transaction is that it consolidates its presence in the region of Chaudière-Appalaches, and in particular in the Beauce region. ActiPrima was established in St-Georges-de-Beauce. Assurancia was a branch, with a lesser volume. The headquarters of Assurancia Groupe Tardif is established in Thetford Mines.
The transaction is the volume of Assurancia Groupe Tardif to$ 42 Million, split 60 % personal lines and 40 % in insurance companies. ActiPrima had a premium volume of approximately$ 7 Million, divided equally between the two business segments. «It is often looking for firms that have a stronger presence in personal insurance. It secures the volume during the renewals, » says Mr. Tardif. Assurancia Groupe Tardif will have 90 employees, approximately 70 certified.
The integration of ActiPrima is initiated within of Assurancia Groupe Tardif. This should be facilitated by the fact that the two firms used the same broker management system (BMS), that is, ofApplied Systems. One of the main challenges will be to standardize their source codes, » says Mr. Tardif.
This last said also pick up many talents within ActiPrima, as several of the brokers that work there have the expertise. He moreover cites Daniel Beaudouin, who is a producer very important in the firm, having also an extensive experience in the insurance industry. Tardif points out that this is not the only in this cabinet, and that young people are developing well.
Acquisitions in the collimator
Is Assurancia Groupe Tardif is preparing to make further acquisitions ? «There are buns in the oven «, said Mr. Tardif, who has worked at the Bakery St-méthode in his youth. It clarifies, however, that these projects are for the moment embryonic.
«When you do an acquisition, there are synergies to go looking for it, either in terms of finance or human resources, among others. Making acquisitions, it’s in our DNA. It is, in fact, since 2003. When you do, it is important to involve the seller before, during and after. If he is not happy, he’s going to say. It will not make a nice reputation. It should not make promises one cannot keep. It is better to deliver more than promised. «
With regard to its development objectives, Tardif said that he would like to reach a volume of$ 100 Million, which would ensure that it would have between 180 and 200 employees. It clarifies, however, that these are not the numbers that are most important. He wants, above all, seek expert opinion, before the same territories.
«The acquisition of a volume of a million dollars in a firm of four employees, can be very lucrative if you do the guards that an employee and a half. However, this is not that kind of acquisition which will give you growth. It’s by looking for the expertise that the growth will come, » he said.
To this effect, he gives the example of the market of agricultural insurance, where ActiPrima is a leader, with nearly $ 800,000 in premiums in this segment. «We now have seven people who are dedicated. This market has become a religion for us. One of the acquisitions that we target in this time is a firm that has plans of the group. It could be from such a program ourselves, but it would require a huge amount of work. By purchasing, you gain this expertise, » he says.