Macquarie Group

Macquarie Group

March 01, 2007 08:00 ET

Macquarie Group Acquires Canadian Premium Finance Company, Insurance Pay

TORONTO, ONTARIO--(CCNMatthews - March 1, 2007) - Australian financial services provider Macquarie Group ("Macquarie") today announced it has acquired 100 per cent of Insurance Pay Canada Inc. ("Insurance Pay"), one of Canada's most dynamic premium finance companies.

Headquartered in Toronto, Insurance Pay is one of Canada's largest premium finance companies. Premium financers provide clients with short-term loans to pay their insurance premiums upfront, with loan repayments spread over the course of the year, usually over 10 months.

Insurance Pay helps businesses manage their cash flow by offering loans to finance their insurance payments. The company works exclusively with independent brokers to provide insurance premium financing to commercial customers who prefer to pay their premiums over the course of the year.

"We are very excited to have the support of Macquarie, a leading global financial services organization," Mr Stuart Bruce, founder and Chief Executive Officer of Insurance Pay Canada Inc., said.

"Since we entered the market a few years ago, we have grown to become one of Canada's largest premium finance companies. Our innovative systems, strong service levels and product range offer an attractive package to independent Canadian brokers. Now armed with Macquarie's financial support and specialist premium finance expertise, Insurance Pay is in a strong position to further develop and take our service to the next level.

"The capabilities of both parties will enable us to enhance and expand our product range for our customers. Macquarie's reputation for product innovation and delivering superior customer service is an excellent strategic fit with Insurance Pay. We are incredibly energized about the future," he added.

Under the terms of the acquisition, Insurance Pay will become a wholly-owned subsidiary of Macquarie and continue to operate under the Insurance Pay name. Management will remain the same and staff will become Macquarie employees.

Macquarie's Head of Insurance Broking Services, Paul Cilia, said the acquisition of Insurance Pay is part of Macquarie's global strategy of selectively entering markets where there is a genuine opportunity to add real value.

"We believe Insurance Pay is a highly competitive company, with great people and innovative software. We are confident that by providing the necessary finance and resources Insurance Pay can become the leading premium finance solution for Canadian brokers," he said.

Mr Cilia indicated that Macquarie intends over time to broaden its range of solutions for insurance brokers to include business lending.

"The Canadian insurance broking market is starting to undergo consolidation and we believe that a specialist lender providing flexible finance for merger and acquisition will be well received by brokers," he added.

ABOUT MACQUARIE

The Macquarie Group (Macquarie) is a diversified international provider of specialist financial and investment banking services. Headquartered in Sydney, Australia, the Macquarie Group comprises Macquarie Bank Limited (MBL), the leading Australian investment bank and its worldwide subsidiaries, affiliates and the funds they manage. Macquarie listed on the Australian Stock Exchange in 1996, and now employs over 9,600 people in 24 countries.

Since 1992 Macquarie has reported successive years of record profits and consistent growth. Macquarie's approach is driven by a deliberate focus on areas of business where its particular skills and expertise deliver a real advantage for clients.

As a result, Macquarie has established leading positions in a diverse range of market segment and regions internationally. Technical expertise, strong risk management and an enterprising approach underlie all activities.

Macquarie established its Australian premium finance business, Macquarie Premium Funding, in 2003. Since its inception, the business has enjoyed double-digit growth and was named "Premium Funder of the Year" at the Australia and New Zealand Insurance Industry Awards 2006.

In Australia, Macquarie also provides specialist business solutions for insurance brokers, including finance for merger and acquisition, trust accounts, and payment collection and reconciliation services.

Macquarie's focus in Canada is on specialist activities in the infrastructure, utilities, natural resources and equipment operating leasing sectors, and on providing residential mortgages to Canadians through Macquarie Financial Ltd.

ABOUT INSURANCE PAY

Insurance Pay Canada Inc. is a leading premium finance company providing loans to commercial customers to finance their insurance.

Insurance Pay works with industry leading organizations to provide simple and affordable ways for clients to pay their insurance premiums. Insurance Pay is dedicated to bringing solutions to support the independent insurance broker network in Canada. This dedication is demonstrated through innovative web solutions and system integrations making premium finance a valuable tool for Insurance Pay brokers.

The company's head office is located in Toronto, Canada, with representatives in Montreal and Vancouver.

Insurance Pay Canada Inc. (IPCI) is not an authorized deposit taking institution for the purposes of the Banking Act (Cwth) 1959. IPCI's obligations do not represent deposits or other liabilities of Macquarie Bank Limited ABN 46 008 583 542 (MBL). MBL does not guarantee or otherwise provide assurance in respect of the obligations of IPCI, unless noted otherwise. MBL is a licensed Australian Bank listed on the Australian Stock Exchange. MBL is not licensed to conduct banking business in Canada. IPCI is not regulated as a bank or other financial institution or as a holding company thereof.

Contact Information

  • Boudreau & Associates
    Anita Boudreau
    (416) 588-0552
    or
    Macquarie Group
    Kathryn Bonnefin
    Corporate Communications
    (212) 231-1739
    Website: www.macquarie.com.au