iA Financial Corporation Inc. announced October 3 that its subsidiary, iA American Holdings Inc., has entered into an agreement to acquire Fidelity Life, an insurance carrier, and eFinancial, a direct-to-consumer digital agency, both together serving the middle market life insurance space as Vericity Inc.
The acquisition of Vericity for USD $170-million is expected to close in the first half of 2024. “Vericity comprises two entities servicing the middle-market life insurance space, with synergies in between and combining artificial intelligence and rich data analytics to deliver innovative proprietary technology,” they state in their announcement about the acquisition. Vericity currently employs more than 400 people.
iA Financial says the deal adds scale to its U.S. individual life insurance business and creates shareholder value by building competencies.
“The purchase price of USD $170-million will be funded by iA with existing cash on hand and is expected to reduce the company’s solvency ratio by about three percentage points,” they add. The acquisition is expected to become accretive during the second year.
