Industrial Alliance concludes acquisition of American-Amicable
Industrial Alliance Insurance and Financial Services Inc. has concluded the acquisition of all the outstanding shares of American-Amicable Holding, Inc.
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.
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.
