Desjardins Group, a leading cooperative financial group in Canada, and State Farm, the largest P&C mutual insurance company in the U.S., have entered into a definitive agreement under which Desjardins Group will purchase State Farm Canada's businesses in p&c and life insurance, as well as its Canadian mutual fund, loan and living benefits companies.

The transaction is expected to close in January 2015, subject to approval from regulators and compliance with customary closing conditions. Following the closing, Desjardins will operate the newly acquired State Farm Canada businesses under the State Farm brand for an agreed license period.

Once the transaction is finalized, State Farm's 1,700 Canadian employees and network of more than 500 Canadian agents will continue to serve over 1.2 million customers in Ontario, Alberta and New Brunswick. Desjardins expects the transaction will lead to job creation in the coming years in Canada, including Québec. Desjardins will continue to operate its other insurance brands separately across the country.

"This acquisition will allow Desjardins to develop a broader, multi-channel distribution network across the country, while continuing to meet the needs of State Farm's Canadian client base," says Monique F. Leroux, chair of the board, president and CEO at Desjardins Group. "At the same time, it will enhance our position in Canada by expanding our customer reach and achieving economies of scale."