On June 13, 2023, McDougall Insurance Brokers Limited, a subsidiary of Definity Financial Corporation (TSX: DFY), entered into a definitive agreement to acquire 100% of Drayden Insurance Ltd. for $208 million, subject to closing and post-closing adjustments. The acquisition, funded by Definity through McDougall using a combination of excess capital and debt, will increase Definity’s ownership interest in McDougall to approximately 78%.

Founded in 1965, Drayden Insurance is a prominent Alberta-based broker with $125 million in annual premiums and a strong operating margin. The company employs over 170 people across eight locations in the Edmonton area. The transaction will elevate McDougall’s annual premiums to over $860 million, supported by 860 employees across 65 office locations.

This acquisition is expected to be immediately accretive to Definity's operating ROE and earnings per share. It marks a significant expansion for McDougall into Alberta, establishing a market-leading presence outside Ontario. The deal is expected to close in the third quarter of 2023, pending provincial regulatory approvals.

Blake, Cassels & Graydon LLP advised Definity Financial Corporation and McDougall Insurance Brokers Limited, while Bennett Jones LLP advised Drayden Insurance Ltd.