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.
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