August 15, 2019 / 4:25 PM / 3 months ago

UPDATE 1-Canada's Intact Financial to buy Guarantee Co, Frank Cowan for C$1 bln

(Adds details from the release)

Aug 15 (Reuters) - Canadian property and casualty insurer Intact Financial Corp said on Thursday it agreed to buy The Guarantee Co of North America and Frank Cowan Co for C$1 billion ($750.6 million) in cash from Princeton Holdings Ltd.

The deal, expected to close in the fourth quarter, will bolster Intact’s position by adding new products for its high net worth customers, the company said.

Intact expects the deal to add to net operating income per share immediately, with low single-digit accretion within 24 months after close.

The Guarantee Co has customers in Canada and the United States with two-thirds of its business in specialty insurance and surety, and one-third in personal insurance.

Frank Cowan Co Ltd is a managing general agent, which acts as an intermediary between an insurance company and clients. ($1 = 1.3323 Canadian dollars) (Reporting by Arundhati Sarkar and Bharath Manjesh in Bengaluru; Editing by Sriraj Kalluvila)

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