QUEBEC
CITY, Aug. 7, 2024 /CNW/ - iA Financial Group
(TSX: IAG) announces today that it has completed the acquisition of
two existing blocks of business from Prosperity Life Group
("Prosperity"), as initially announced on
July 15, 2024.
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.
Furthermore, iA Financial Group's products will also be made
available to Prosperity's 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.
"With the closing of this transaction, iA continues to enhance
its footprint in the United
States, further solidifying its position in the Final
Expense and Term Life markets," remarked Sean O'Brien, Executive Vice-President and Chief
Growth Officer US Operations. "We are pleased to integrate new
agents and IMOs and are committed to providing them with the
resources and support they need to thrive within our network and
continue to offer outstanding service to their clients."
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 is a one
percentage point decrease.
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 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.
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
symbol IAG (common shares).
iA Financial Group is a business name and trademark of iA
Financial Corporation Inc. and Industrial Alliance Insurance
and Financial Services Inc.
SOURCE Industrial Alliance Insurance and Financial Services
Inc.