In addition, Crédit Mutuel, a major European cooperative financial group and long-term partner of Desjardins Group, will invest $200 million.
Desjardins Group will allocate capital of approximately $700 million to support the growth of its P&C business. As well, Desjardins Group's Life and Health Insurance subsidiary, Desjardins Financial Security, and certain other Desjardins units will allocate capital of $250 million for the life insurance, mutual fund, loan and living benefits components of the agreement.
Once the transaction is finalized, State Farm's 1,700 Canadian employees and network of more than 500 Canadian agents will continue to serve over 1.2 million customers in Ontario, Alberta and New Brunswick. Desjardins expects the transaction will lead to job creation in the coming years in Canada, including Québec.
Desjardins will continue to operate its other insurance brands separately across the country.
“The agreement between State Farm and Desjardins, combined with the support of our long-term French partner, Crédit Mutuel, brings together three financial cooperative and mutual organizations to create an insurance leader in Canada,” added Leroux. “It also provides a foundation for exploring additional opportunities for even greater collaboration in Canada in the future.” (continued on page 3)