Major insurer purchases majority interest in MGA

Canadian insurer buys a majority interest in company focussed on insurance solutions for the self-employed and small business owners.

The Co-operators purchased a majority interest in The Edge Benefits.

"This was a natural fit, as the two organizations share similar values and have an established successful relationship," said Kathy Bardswick, president and CEO of The Co-operators. "We look forward to the future, as The Edge Benefits will continue to operate independently, with the same business model and management team."

The Edge Benefits, has 80 employees and more than 45,000 policyholders, with about 14,000 insurance advisors across Canada select the company’s products when offering living benefit solutions for clients.

The Edge should benefit from the backing of a national multi-product insurance company. The Co-operators will help ensure its continued stability and long-term success in promoting its best-in-class product offerings from leading Canadian insurers.

The current management team will remain in place and The Edge Benefits will continue to operate independently.

"The completion of this transaction will enable the EDGE brand to continue its dominant position in providing lifestyle protection plans to the self-employed marketplace," said David Prince, one of two co-founding partners of the EDGE, along with Jeff Neale. "With The Co-operators, we foresee significant synergies that will build on the legacy we have established over the past 30 years."

The two organizations have been working together since 2013, with Co-operators Life Insurance Company supplying simplified disability products through The Edge Benefits.