Move is targeted on the mid-market life insurance coverage area
![iA Financial to boost US presence with $170 million deal](https://cdn-res.keymedia.com/cdn-cgi/image/w=840,h=504,f=auto/https://cdn-res.keymedia.com/cms/images/us/023/0321_638320112685379435.jpg)
Canadian insurance coverage and wealth administration big iA Financial Group has entered a deal to amass Vericity for US$170 million, a bid that can develop its US presence.
Vericity conducts enterprise by two working subsidiaries within the mid-market life insurance coverage area. Fidelity Life is an Illinois-based insurance coverage service based in 1896, whereas eFinancial is a direct-to-consumer digital insurance coverage company.
A press launch from iA mentioned funding for the transaction will come from current money readily available. The transfer is projected to cut back the agency’s solvency ratio by round three share factors.
“With this acquisition, we are adding scale to our already well-established and successful US individual life insurance business and creating value for our shareholders by building on our core insurance and distribution competencies,” mentioned Mike Stickney, government vice chairman, chief progress officer US operations, co-head of acquisitions.
According to Stickney, the addition of Fidelity Life will enable iA to pursue “further growth” within the US particular person life insurance coverage market. At the identical time, the eFinancial digital company will assist diversify its distribution capabilities.
Vericity CEO James Hohmann mentioned the acquisition presents “compelling value for all of our stockholders and reflects the strength of our business.”
“We look forward to accelerating our strategic advancement within iA as we further grow the eFinancial platform, the business overall, and create new opportunities for our people and the franchise,” Hohmann added.
The transaction is predicted to shut within the first half of 2024, following regulatory approvals in Canada and the US.
Vericity employs over 400 people and is majority owned by personal funding agency J.C. Flowers & Co.
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