EQB Inc., parent company of digital challenger EQ Bank, has agreed to acquire PC Financial from Loblaw Companies Ltd. in a transaction that will reshape both the banking and insurance landscape in Canada. The $800 million deal, paid in shares and cash, will see Loblaw take a 16% stake in EQB and establish EQ Bank as the exclusive financial partner of the PC Optimum loyalty program.
The acquisition includes President's Choice Bank, PC Financial Insurance Agency Inc., and PC Financial Insurance Brokers Inc., expanding EQB’s reach into insurance distribution and product manufacturing. PC Financial Insurance Agency and Brokers have been active in offering a range of personal insurance products - such as travel, creditor, and pet insurance - underwritten by third-party carriers and distributed through the PC Financial platform.
The deal will add approximately 3.5 million new customers to EQB, including more than two million active PC Mastercard clients, and will bring an additional $5.8 billion in assets to EQB’s existing $138 billion portfolio. EQ Bank’s current customer base stands at 607,000.
For insurance professionals, the transaction signals a significant expansion of EQB’s footprint in the insurance intermediary space. By acquiring PC Financial’s insurance agencies and brokers, EQB will gain access to a large, established distribution network. This infrastructure, combined with the PC Optimum loyalty program, is expected to drive cross-selling opportunities for insurance and financial products.
The move also positions EQB to compete more directly with other banks and retailers offering insurance solutions, at a time when digital distribution and loyalty integration are increasingly important for customer acquisition and retention. The deal follows a broader trend of consolidation in Canadian banking and insurance, with recent takeovers of Laurentian Bank, Canadian Western Bank, and HSBC Canada.
Loblaw CFO Richard Dufresne commented that the transaction will allow Loblaw to focus on its core retail operations while providing PC Financial products with better long-term growth prospects. Loblaw will retain ownership of the PC Optimum program, which will remain central to the partnership.
EQB chief executive Chadwick Westlake described the deal as “a new era for banking in Canada,” highlighting the combined focus on innovation and value for customers.
Over time, the EQ Bank name will replace the PC Financial brand, but PC Financial’s insurance agencies and brokers will continue to operate as part of EQB’s broader offering.
The transaction is expected to close in 2026, subject to regulatory and court approvals.
