Texas-based Life Insurance
Company Expands Platform for Growth in the U.S. Market
QUEBEC CITY, July 20
/PRNewswire-FirstCall/ - Industrial Alliance Insurance and
Financial Services Inc. ("Industrial Alliance" or "the Company")
announced today that it has concluded the acquisition of all the
outstanding shares of American-Amicable Holding, Inc.
("American-Amicable"). The transaction was announced on
April 28, 2010 and closed on
July 20, 2010. American-Amicable will
operate as part of the Company's wholly-owned U.S. subsidiary IA
American Life Insurance Company ("IA American").
The addition of American-Amicable, which markets primarily
traditional life insurance products, significantly increases the
Company's scale and presence in the U.S. American-Amicable is
licensed to sell life insurance in 49 states and territories, and
its products are marketed through a national distribution network
of more than 6,000 independent agents. IA American, which now has a
total of more than 8,200 agents country-wide, will maintain both
the American-Amicable platform in Waco,
Texas and the IA American base in Scottsdale, Arizona.
The transaction, valued at US$145.3
million including excess capital of US$45 million, was financed from cash on hand. It
is expected to be immediately accretive to earnings by $0.05 per share on an annual basis. With the
closing, the Company's solvency ratio now stands at 214%, compared
with pro forma 223% at March 31,
2010.
Caution Regarding Forward-looking Statements
This news release may contain statements relating to strategies
of Industrial Alliance 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", "objective" and "continue" (or the negative thereof) or
similar words or expressions. Such statements are forward-looking
statements within the meaning of securities laws. Forward-looking
statements include, without limitation, the information concerning
possible or assumed future results of operations of the Company.
These statements are not historical facts but instead represent
only the Company's expectations, estimates and projections
regarding future events.
Although Industrial Alliance 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. Certain material factors
or assumptions are applied in making forward-looking statements,
and actual results may differ materially from those expressed or
implied in such statements. Factors that could cause actual results
to differ materially from expectations include, but are not limited
to: general business and economic conditions (including but not
limited to performance of equity markets, interest rate
fluctuations, currency rates, investment losses and defaults,
movements in credit spreads, market liquidity and creditworthiness
of guarantors and counterparties); level of competition and
consolidation; changes in laws and regulations including tax laws;
liquidity of Industrial Alliance including the availability of
financing to satisfy existing financial liabilities on their
expected maturity dates when required; accuracy of information
received from counterparties and the ability of counterparties to
meet their obligations; accuracy of accounting policies and
actuarial methods used by Industrial Alliance; insurance risks
including mortality, morbidity, longevity and policyholder
behaviour including the occurrence of natural or man-made
disasters, pandemic diseases and acts of terrorism; failure of
information systems and Internet-enabled technology; breaches of
computer security and privacy; dependence on third-party
relationships including outsourcing arrangements; ability to
maintain Industrial Alliance's reputation; regulatory
investigations and proceedings and private legal proceedings and
class actions relating to practices in the mutual fund, insurance,
annuity and financial product distribution industries; the ability
to adapt products and services to the changing market; the ability
to implement effective hedging strategies; the ability to attract
and retain key executives; the ability to complete acquisitions
including the availability of equity and debt financing when
required for this purpose; the ability to execute strategic plans;
the disruption of or changes to key elements of Industrial
Alliance's or public infrastructure systems; and environmental
concerns. Additional information about 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 Industrial Alliance's
most recent Annual report, namely under the "Risk Management"
section in the management's discussion and analysis and in the
"Management of Risks Associated with Financial Instruments" note to
Industrial Alliance's consolidated financial statements, and
elsewhere in Industrial Alliance's filings with Canadian securities
regulators, which are available for review at www.sedar.com.
Industrial Alliance does not undertake to update or release any
revisions to these forward-looking statements to reflect events or
circumstances after the date of this news release or to reflect the
occurrence of unanticipated events, except as required by law.
About Industrial Alliance
Founded in 1892, Industrial Alliance Insurance and Financial
Services Inc. is a life and health insurance company that offers a
wide range of life and health insurance products, savings and
retirement plans, RRSPs, mutual and segregated funds, securities,
auto and home insurance, mortgage loans and other financial
products and services. The fourth largest life and health insurance
company in Canada, Industrial
Alliance is at the head of a large financial group, which has
operations in all regions of Canada, as well as in the United States. Industrial Alliance
contributes to the financial wellbeing of over three million
Canadians, employs more than 3,500 people and manages and
administers over $60 billion in
assets. Industrial Alliance stock is listed on the Toronto Stock
Exchange under the ticker symbol IAG. Industrial Alliance is among
the 100 largest public companies in Canada.
SOURCE INDUSTRIAL ALLIANCE INSURANCE AND FINANCIAL SERVICES
INC.
