Marubeni Corporation (hereinafter, “Marubeni”) has invested in LGM Financial Services Inc. group (hereinafter, “LGM”), a Canadian company that designs and sells extended warranty products for automobiles*1 and provides warranty claims processing services (hereinafter, the “Investment”)*2.

In Canada, where the vehicle inspection system is simpler than in Japan, car maintenance needs and the risk of a breakdown are higher, and approximately 40% of car buyers purchase an extended warranty. The extended automobile warranty is a product that supports long-term ownership and use of the vehicles that are indispensable to people's lives, and the market for them is expected to see growth at an average annual rate of around 10% by 2030.

LGM has been providing extended warranty products for automobiles across Canada since its establishment in 1998, and is one of the industry’s top operators in the country. The company sells both the authorized products it designs for multiple auto manufacturers and its own brand of products that it designs for used vehicles through car dealers. LGM has also introduced an AI-based sales system for dealers, advancing the digitalization of advanced operations including centralized management of sales status, provision of product sales solutions, and validation and processing of warranty claims. This has earned LGM high regard among all stakeholders, including car owners, manufacturers, dealers, and maintenance and repair companies, and this is particularly true in sales support and insurance reimbursement support, where customer satisfaction is very high.

In its Mid-Term Management Strategy (GC2027), Marubeni is focusing on Strategic Platform-type Businesses (businesses with “Growth Domains x High Added Value x Scalability”). Marubeni has been active in the North American mobility business. In the domain of fleet management, which covers all domains of the mobility business, Marubeni invested in Wheels Inc.—the largest fleet management company in the U.S.—in 2024, and in the automotive aftermarket domain, Marubeni has also been expanding its business, such as by developing its automotive aftermarket-parts sales in the U.S. and acquiring a business that sells online parts to companies offering extended warranties.

This investment is an entry into the Canadian extended warranty market, which is expected to grow, and by combining Marubeni's knowledge and experience in the automotive aftermarket business with LGM's advanced technology, Marubeni aims to provide services with higher added value. Marubeni will continue to expand its value chain throughout the entire automobile life cycle, from sale to disposal, with the aim of enhancing its corporate value.

*1 An insurance product that guarantees payment of the repair costs for an automobile’s breakdown after the manufacturer's warranty period has expired 
*2 Investment made through a special purpose company, Possibility Holdings Ltd.

<Overview of LGM>
Company Name:	LGM Financial Services Inc.
Location:	Vancouver, British Columbia, Canada
Establishment:	1998
Representative:	Drew Collier (President and CEO)
Main business:	Design, sales, and warranty claim processing services for various automobile extended warranty products
Website:	https://www.lgm.ca/