iA Financial Group announced July 15 that it has acquired two existing blocks of business from Arizona-based S.USA Life Insurance Company, Inc., a Prosperity Life Group company, expected to bring in more than $100-million (all figures in U.S. dollars) in premiums annually.
The blocks purchased by iA include final expense and term life products issued by the subsidiary in the United States. In total the company is acquiring more than 115,000 policies.
As part of the announcement, the company adds that Prosperity’s distribution network will be invited to sell iA Financial Group products.
Distribution network
“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, a subsidiary of iA Financial Group, to sell iA’s products. The others will be invited to do the same,” the company said in a statement.
They add that the acquisition will be accretive from the first year. The company’s solvency ratio is expected to decrease by one percentage point. The amount iA paid for the business was not disclosed.
In a recent presentation, iA Financial Group’s president and CEO discussed briefly the company’s acquisition ambitions. In the last quarter of 2023, the company announced its intention to have its subsidiary, iA American Holdings Inc., purchase Vericity Inc. from Fidelity Life. In Canadian wealth management, the company also recently acquired the assets of Laurentian Bank Securities’ retail full-service investment broker division.
Related:
iA Financial Group continues its focus on distribution in Canada
iA Financial subsidiary acquires U.S. insurance carrier and digital agency
iA Financial acquires Laurentian Bank’s full-service brokerage division
