QUEBEC
CITY, July 15, 2024 /CNW/ - iA Financial
Group (TSX: IAG) announces today the acquisition of two existing
blocks of business from Prosperity Life Group (''Prosperity'').
The insurance blocks purchased by iA Financial Group are
composed of Final Expense and Term Life products issued by
Prosperity company S.USA Life Insurance Company, Inc. ("S.USA") in
the United States, amounting to
more than 115,000 policies and more than US$100 million in annual premiums. S.USA is
an Arizona life insurance company
authorized to write life, annuity, and health products in 47 states
and the District of Columbia.
In addition, Prosperity's distribution network will be invited
to sell iA Financial Group's products. Prosperity has a
distribution network of about 15,000 sales agents contracted
through Independent Marketing Organizations (IMOs).
Approximately two-thirds of these agents and IMOs already have
a contractual agreement with American-Amicable Life Insurance
Company ("American-Amicable"), a subsidiary of iA Financial Group,
to sell iA's products. The others will be invited to do the
same.
This acquisition will be accretive from the first year, both on
a core and reported basis. The transaction amount is not disclosed.
The impact on iA Financial Group's solvency ratio will be around a
one percentage point decrease.
The transaction is subject to ordinary closing conditions.
"This transaction will further increase iA's strong growth
momentum and expand again its presence in the United States," stated Sean O'Brien, Executive Vice-President and Chief
Growth Officer US Operations. "We look forward to welcoming new
IMOs and agents and helping them continue to serve their customers
well."
Forward-Looking Statements
This document may contain statements relating to strategies used
by iA Financial Group or statements that are predictive in nature,
that depend upon or refer to future events or conditions, or that
include words such as "may", "will", "could", "should", "would",
"suspect", "expect", "anticipate", "intend", "plan", "believe",
"estimate" and "continue" (or the negative thereof), as well as
words such as "objective", "goal", "guidance", "outlook" and
"forecast", or other similar words or expressions. Such statements
constitute forward-looking statements within the meaning of
securities laws. In this document, forward-looking statements
include, but are not limited to, information concerning the closing
and the closing date of the transaction, future operating results
and expected benefits of the transaction. These statements are not
historical facts; they represent only expectations, estimates and
projections regarding future events and are subject to change.
Although iA Financial Group believes that the expectations
reflected in such forward-looking statements are reasonable, such
statements involve risks and uncertainties, and undue reliance
should not be placed on such statements. More specifically, the
transaction is subject to the risk and uncertainty of whether and
to what extent iA would realize the expected benefits of the
transaction.
More specifically, the transaction is subject to the following
risks and uncertainties: (i) that iA Financial Group and Prosperity
may be unable to complete the proposed transaction because, among
other reasons, conditions to the closing of the proposed
transaction may not be satisfied or waived, including that a
governmental authority may prohibit, delay or refuse to grant
approval for the consummation of the transaction; (ii) uncertainty
as to the timing of completion of the proposed transaction; (iii)
the occurrence of any event, change or other circumstance that
could give rise to the termination of the agreement; and (iv)
whether and to what extent iA Financial Group would realize the
expected benefits of the transaction.
Additional information about the material factors that could
cause actual results to differ materially from expectations and
about material factors or assumptions applied in making
forward-looking statements may be found in the "Risk Management"
section of the Management's Discussion and Analysis for 2023, the
"Management of Risks Associated with Financial Instruments" note to
the audited consolidated financial statements for the year ended
December 31, 2023 and elsewhere in iA
Financial Group's filings with the Canadian Securities
Administrators, which are available for review at sedarplus.ca.
The forward-looking statements in this document reflect iA
Financial Group's expectations as of the date of this document. iA
Financial Group does not undertake to update or release any
revisions to these forward-looking statements to reflect events or
circumstances after the date of this document or to reflect the
occurrence of unanticipated events, except as required by law.
About iA Financial Group
iA Financial Group is one of the largest insurance and wealth
management groups in Canada, with
operations in the United States.
Founded in 1892, it is an important Canadian public company and is
listed on the Toronto Stock Exchange under the ticker
symbols IAG (common shares) and IAF (preferred shares).
About Prosperity Life Group
Prosperity Life Group is an innovative insurance, reinsurance,
and asset management company, which includes certain operating
subsidiaries of Prosperity Group Holdings, LP in the US and
Bermuda. Together, Prosperity's
three US insurance subsidiaries have a foundation going back over
100 years. S.USA Life Insurance Company, Inc., is an Arizona insurance company authorized to do
business in 47 states plus the District
of Columbia.
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sign up for our newsletter on our website at ia.ca.
iA Financial Group is a business name and trademark of iA
Financial Corporation Inc. and Industrial Alliance Insurance
and Financial Services Inc.
SOURCE iA Financial Group