MANULIFE, RBC SIGN TRAVEL INSURANCE AGREEMENT

Manulife Financial has entered into an agreement with RBC Insurance Company of Canada in which it will reinsure the travel insurance coverage sold by RBC Insurance through travel agencies. The arrangements include transitioning to Manulife the sales and distribution support of RBC Insurance’s travel agency insurance business. Travel agencies will be offered the opportunity to renew their agency agreements with Manulife upon the expiration of their current RBC Insurance contracts. RBC will continue to be the insurance provider to the travel agencies until the expiration of the current travel agency contracts.

According to a statement, Manulife Financial will make employment offers to the majority of the RBC Insurance employees who provide sales, and sales support, directly to the travel agencies. The arrangements are not subject to regulatory approval and are expected to commence during the third quarter of 2013. Financial terms of the business arrangements were not disclosed.

“This transaction provides a unique opportunity to reinforce our leading position in the Canadian travel insurance business by expanding our reach and presence within the travel agency insurance market,” said Brian Gooding, senior vice-president and general manager, Affinity Markets, Manulife Financial. “The travel agency channel is an important part of our strategic growth plan, enabling us to serve many more Canadians and meet their travel insurance needs.”

Officials at RBC say the transaction allows the company to focus on key growth opportunities in travel insurance, including offering travel insurance through its propriety channels, including RBC Insurance stores, contact centre and through strategic partners, like credit card companies, major airlines and retailers. Upon the close of the transaction, travel agencies will deal with Manulife for most sales related support.