Tuesday Ticker highlights major business developments including Stellantis' sale of its idle Brampton Assembly Plant to defense manufacturer Roshel, continued pressure on Canadian auto insurance rates due to rising repair costs and vehicle complexity, and E3 Lithium's non-binding supply agreement with Indian cathode manufacturer Epsilon CAM for battery-grade lithium carbonate.
- Stellantis and Roshel signed a memorandum of understanding for the Brampton Assembly Plant sale, with Roshel planning to create over 2,000 jobs in defense manufacturing starting in 2026
- Canadian personal auto insurance remains unprofitable, with combined ratios of 91.5% in the first half of 2026, and rate increases expected to continue for at least another year
- E3 Lithium's non-binding agreement with Epsilon CAM could supply up to 5,000 tonnes annually of battery-grade lithium carbonate from Alberta's Clearwater project starting 2028
- Definity Financial increased expected savings from its $1.5-billion Travelers Canada acquisition to $125 million and is targeting commercial insurance for its next major acquisition
- Wawanesa Mutual Insurance received regulatory approval to acquire Everest Insurance Company of Canada, expected to close in Q4 2026, expanding commercial insurance presence
In this week’s Tuesday Ticker, an Ontario assembly plant faces an uncertain future, insurance executives point to rising repair costs and an Alberta lithium developer lines up a possible customer.
Brampton break
Executives at Stellantis and Roshel have signed a memorandum of understanding covering the possible sale of the idled Brampton Assembly Plant.
Stellantis closed the facility for retooling in 2023. Work stopped in 2025 before executives moved planned Jeep Compass production to Illinois in response to U.S. tariffs on Canadian goods. The plant previously employed approximately 2,200 people.
The proposed sale has contributed to an impasse in contract negotiations between Stellantis and Unifor. The talks cover more than 9,000 employees at the Brampton, Windsor and Etobicoke operations. The existing collective agreement expires on Sept. 20.
Roshel manufactures armoured vehicles and plans to establish a defence manufacturing centre at the property. The company has proposed creating more than 2,000 jobs.
“We are ready to provide letters of commitment for first consideration to laid-off Unifor workers,” Roshel CEO Roman Shimonov said. He added that hiring could begin in 2026.
Stellantis shares closed at US$5.40 on Sept. 11, up 2.4%, suggesting investors viewed the possible sale as a practical resolution for the idle property.
Rates remain
Intact Financial executives expect difficult pricing conditions in Canadian personal auto insurance to continue for at least another year.
The Canadian personal auto business posted a combined ratio of 91.5% during the first half of 2026. A ratio below 100% means premiums exceeded claims and operating costs.
Chief operating officer Patrick Barbeau said the wider Canadian auto insurance market was not profitable in 2025 or during the first quarter of 2026. He said further rate increases are required to restore profitability across the sector.
“There’s mid-single-digit inflation that has been stable over the past six to eight quarters,” Barbeau said. He attributed much of that increase to parts prices and increasingly complex vehicle technology.
Alberta’s Care-First insurance system could provide some relief when it takes effect on Jan. 1, 2027. Preliminary filings indicate an average annual premium reduction of $297 per driver.
Intact shares closed at $256.87 on Sept. 10, down 0.5%, suggesting investors remained concerned about continuing claims inflation.
Acquisition appetite
Definity Financial executives have identified commercial insurance as the preferred target for the insurer’s next major acquisition.
The Waterloo, Ont.-based property and casualty insurer is integrating Travelers Canada’s $1.5-billion business. The transaction moved Definity into fourth place among Canadian property and casualty insurers by market share. Executives are targeting a top-three position within three to five years.
Definity executives have increased the expected savings from the Travelers transaction to $125 million from $100 million. The combined ratio was 93.9% during the second quarter of 2026.
Travelers Canada entered the transaction with an elevated loss ratio in personal auto compared with Definity. Its commercial operations also carried higher expenses because of the smaller scale of the business and its technology systems.
“When you think about what’s next for our M&A, we clearly would like more commercial business,” president and CEO Rowan Saunders said.
Definity has also invested approximately $1 billion in insurance brokerages. Saunders said the company expects to spend several hundred million dollars annually on smaller brokerage acquisitions.
Definity shares closed at $70.35 on Sept. 11, down 0.2%, suggesting investors remained cautious despite the increased savings estimate.
Lithium link
Executives at E3 Lithium have signed a non-binding agreement with Epsilon CAM covering the possible supply of battery-grade lithium carbonate from Alberta.
The agreement took effect on Sept. 1 and establishes a framework for five years of supply. Proposed volumes could reach 5,000 tonnes annually from E3’s Clearwater project.
That amount would represent up to 40% of the project’s planned first-stage production capacity of 12,000 tonnes per year. Prices, final volumes and other commercial terms have not been negotiated.
Epsilon produces cathode materials used in lithium iron phosphate batteries. The Indian manufacturer is developing a facility capable of producing 30,000 tonnes of cathode material annually. Its first phase is scheduled for completion in early 2028.
“This MOU demonstrates a serious interest and draws a clear path from Alberta brine directly into the battery supply chain,” E3 CEO Chris Doornbos said.
The proposed supply arrangement would connect a Canadian lithium project with the production of materials used in electric vehicle batteries. It would not commit either company to a final purchase.
E3 Lithium shares traded at $1.03 during the Sept. 14 session, unchanged from the previous close, suggesting investors are waiting for a binding agreement.
Everest cleared
Canadian regulators have approved Wawanesa Mutual Insurance’s acquisition of Everest Insurance Company of Canada from publicly traded Everest Group.
Executives announced the transaction in March. Completion is expected during the fourth quarter of 2026, subject to the remaining closing conditions.
Wawanesa executives plan to retain Everest Canada as a separate business with its own management team. A future name change is planned, but the acquired operation will not be folded into Wawanesa’s existing corporate structure.
Personal insurance accounts for roughly 70% of Wawanesa’s premiums, with commercial coverage providing the remaining 30%. The acquisition would increase the proportion of commercial and specialty insurance in the business.
“We’re committed to expanding our commercial presence,” Wawanesa president and CEO Evan Johnston said. “We see significant opportunity in both Quebec and Ontario.”
Johnston said Wawanesa could provide capital for further acquisitions identified by the Everest Canada management team. Possible targets could include insurers, managing general agents, brokerages or related service providers.
Everest Group shares closed at US$369.83 on Sept. 8, down 2.9%, suggesting the approval did not offset the wider decline in insurance stocks.
