CPE News (3.11.2022) – Definity Financial Corporation (TSX: DFY) has entered into a strategic partnership with APOLLO Insurance Solutions Ltd., a leading Canadian digital insurance broker and MGA specializing in commercial insurance.
The partnership includes a distribution relationship between Definity’s affiliate Definity Insurance Company and APOLLO, and an agreement by Definity to complete an initial minority equity investment in APOLLO.
APOLLO announced the minority investment as “Series B” financing. RBC Capital Markets acted as exclusive financial advisor to APOLLO on the transaction. Blake, Cassels & Graydon acted as legal advisor to APOLLO.
The initial investment transaction is subject to regulatory approval and is expected to close during the second quarter of 2022. It is being effected by an indirect wholly-owned subsidiary of Definity and will be financed from cash on hand.
Founded by CEO Jeff McCann and Chair Drew Green, Vancouver based APOLLO is a leading Canadian digital insurance broker and MGA specializing. Its proprietary platform, the APOLLO Exchange, allows insurance agents and their customers to purchase their policy immediately, from anywhere, on any device, 24/7. APOLLO has a user base of more than 6,000 individual Canadian brokers and over 150 group partners.
APOLLO has previously planned to go public on TSX Venture following the closing of a tranched and dubbed “Series A” $13.46 million brokered private placement of common share equity units from a large group of over 280 investors from Canada, USA, Europe, Asia and Cayman Islands.
A large group of 155 Ontario investors led the private placement, investing $7.2 million. Trisura Group Ltd. (TSX: TSU) and Liberty Mutual Insurance invested as minor investors.
photo credit: APOLLO Insurance
News Release
DEFINITY FINANCIAL CORPORATION TO ACQUIRE MINORITY INTEREST IN APOLLO INSURANCE
WATERLOO, ON, March 11, 2022 /CNW/ – Definity Financial Corporation (“Definity”) (TSX: DFY) today announced a strategic partnership with APOLLO Insurance Solutions Ltd., a leading Canadian digital insurance broker and MGA specializing in commercial insurance. This strategic partnership includes a distribution relationship between Definity’s affiliate Definity Insurance Company and APOLLO, and an agreement by Definity to complete an initial minority equity investment in APOLLO.
Definity has an established digital insurance expertise in commercial lines, which includes the broker digital platform Vyne Commercial.
The partnership with APOLLO expands upon Definity’s existing digital footprint. APOLLO allows its broker partners and customers to purchase insurance online through its proprietary platform. APOLLO’s all-digital approach leverages extensive data and intelligent algorithms to quote, collect payment, and issue policies – all without human intervention – and serves all provinces, except Québec.
“Definity is one of Canada’s leading digital insurance providers, and this partnership with APOLLO will allow us to extend the opportunities for a simpler insurance experience for both brokers and their customers,” said Fabian Richenberger, Executive Vice-President, Commercial Insurance, Definity. “We believe that the scalable platform that APOLLO provides, combined with our proven track record in digital innovation and strong underwriting, will help strengthen our commercial distribution capabilities.”
“Our partnership with Definity provides us with resources and opportunities to expand our footprint in the small to mid-size business market”, stated Jeff McCann, Chief Executive Officer & Co-Founder of APOLLO. “Definity and APOLLO share a deep commitment to using technology and software to deliver an effortless insurance experience to customers and our retail broker partners.”
APOLLO has a user base of more than 6,000 individual Canadian brokers and over 150 group partners.
The initial investment transaction is subject to regulatory approval and is expected to close during the second quarter of 2022. It is being effected by an indirect wholly-owned subsidiary of Definity and will be financed from cash on hand.
About Definity Financial Corporation
Definity Financial Corporation (TSX: DFY) is a multi-channel insurance company, offering personal and commercial insurance through Economical Insurance, Sonnet Insurance Company, Petline Insurance Company, and Family Insurance Solutions Inc.
Forward-looking Statements
This news release contains “forward-looking information” within the meaning of applicable securities laws in Canada, which reflects Definity’s current expectations regarding future events, including: statements relating to the terms of the strategic partnership, including the investment transaction; the timing of closing; the receipt of regulatory approval; the benefits of the strategic partnership and transaction; and statements regarding APOLLO’s digital insurance capabilities, services, and ability to expand its footprint. In addition, any statements that refer to expectations, intentions, projections or other characterizations of future events or circumstances contain forward-looking information. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond Definity’s control. Such risks and uncertainties include: Definity’s ability to successfully complete the strategic partnership and transaction, integrate and realize the benefits of the transaction, and manage the associated risks; Definity’s ability to obtain required regulatory approvals for the transaction, the timing thereof and the risk that such regulatory approvals may result in the imposition of conditions that could adversely affect the expected benefits of the transaction; the risk that the conditions to the transaction are not satisfied on a timely basis or at all and the failure of the transaction to close for any other reason; disruption to Definity’s or APOLLO’s respective businesses that could result from the announcement of the strategic partnership and transaction; and other risks and uncertainties impacting Definity’s business, as described in greater detail in “11 – Risk Management and Corporate Governance” of Definity’s Q4-2021 Management’s Discussion and Analysis dated February 10, 2022 as filed on SEDAR. Actual results could differ materially from those projected herein. Definity does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required under applicable securities laws.
SOURCE Definity Financial Corporation
For further information: Media inquiries: Sarah Attwells, Director, Corporate Affairs, (C) 416-986-9360, sarah.attwells@definityfc.com; Investor inquiries: Dennis Westfall, Head, Investor Relations, (C) 416-435-5568, dennis.westfall@definityfc.com