Canadian property and casualty insurer Definity Financial (Definity) has acquired a majority stake in McDougall Insurance for a cash consideration of C$217m ($159.77m).

The latest investment in increases Definity’s stake in McDougall from 25% to 75% and takes the total investment to C$251m.

McDougall, which was founded in 1946, is a property and casualty insurance intermediary representing over 50 insurers.

With a team of 450, the Ontario-based broker operates over 40 branches.

Definity first invested in McDougall in 2017 and since then the broker has completed 14 broker acquisitions and more than doubled its premium base to around $500m on an annual basis, Definity said in a statement.

Through the deal, which is part of Definity’s corporate strategy, the insurer hopes to benefit from diversification advantages offered by distribution partnerships.

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Definity hopes to generate over C$40m annually from McDougall’s operating income with Definity’s other broker investments.

Definity president and CEO Rowan Saunders said: “With growing revenue and robust operating margins, McDougall is a strong franchise that we believe has an even brighter future ahead of it.

“We have been equity partners with McDougall for over five years, and are excited by the opportunity to expand that partnership and build on their track record of success.”

McDougall CEO Ross McDougall said: “We are excited to strengthen our partnership with Definity, which we believe will enable us to accelerate our growth plans and further our ambition to reach an annual premium base of C$1bn.

“The unique structure of this partnership will allow us to maintain and expand the McDougall operations, providing a home for more brokers to join us and keep equity in the business going forward.”

In November this year,  Swiss Re-backed Definity raised C$1.6bn in an initial public offering.