Industrial Alliance May Acquire BBABy Alain Thériault | November 12 2015 01:12PM
iA Financial Group head office in Quebec City.
According to sources in the managing general agent (MGA) network, BBA Financial Group may become part of Industrial Alliance, acquired through its subsidiary the National Financial Insurance Agency Inc. (NFIAI). The conclusion of this purchase appears imminent, as the buyer is presently assumed to be conducting its due diligence. Contacted by The Insurance and Investment Journal to confirm the rumour, Industrial Alliance has declined to comment. Nor was it possible to reach BBA’s CEO Lise Bouchard, who is currently outside the country.
If there is a deal in progress, BBA would represent a significant addition to NFIAI which is the MGA and subsidiary of Industrial Alliance's mutual fund distribution arm Investia Financial Services. Considered to be a jewel in the Quebec City region's independent life insurance distribution network, BBA was founded by Benoit Bouchard more than 60 years ago. In 2014, BBA had between 500 and 600 active advisors. The MGA had in-force premium volume of approximately $12.5 million as of the end of 2013 and it placed $4.5 million of premiums in the same year. As for NFIAI, it has a sales force of more than 700 advisors.
BBA already dealt with Investia for mutual fund distribution. Investia's assets under management totalled $15.5 billion as of July 31, 2015. It is known in the industry that Industrial Alliance is one of BBA's biggest providers of life insurance.