iA Financial buys two blocks of business from Prosperity Life in the US

iA Financial Group  has acquired two existing blocks of business from Prosperity Life Prosperity Life .

The insurance blocks purchased are composed of Final Expense and Term Life products issued by Prosperity company S.USA Life Insurance Company, Inc. (“S.USA”) in the US, amounting to more than 115,000 policies and more than US$100 million in annual premiums. S.USA is an Arizona life insurance company authorized to write life, annuity, and health products in 47 states and the District of Columbia.

In addition, Prosperity’s distribution network will be invited to sell iA Financial Group’s products. Prosperity has a distribution network of about 15,000 sales agents contracted through Independent Marketing Organizations (IMOs). Approximately two-thirds of these agents and IMOs already have a contractual agreement with American-Amicable Life Insurance Company (“American-Amicable”), a subsidiary of iA Financial Group, to sell iA’s products. The others will be invited to do the same.

This acquisition will be accretive from the first year, both on a core and reported basis. The transaction amount is not disclosed. The impact on iA Financial Group’s solvency ratio will be around a one percentage point decrease.

The transaction is subject to ordinary closing conditions.

“This transaction will further increase iA’s strong growth momentum and expand again its presence in the United States. We look forward to welcoming new IMOs and agents and helping them continue to serve their customers well.” – Sean O’Brien, Executive Vice-President and Chief Growth Officer US Operations.