Industrial Alliance Insurance and Financial Services, a life and health insurance company, has completed the acquisition of all the outstanding shares of American-Amicable Holding, as announced on April 28, 2010.
Following this acquisition, American-Amicable will operate as part of the Industrial Alliance’s wholly-owned US subsidiary IA American Life Insurance (IA American).
Industrial Alliance expects that the addition of American-Amicable, which markets primarily traditional life insurance products, will increase its scale and presence in the US.
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.
Industrial Alliance has said that 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 $145.3m including excess capital of $45m, 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.