To offer Industrial Alliance's life and health insurance and annuity products to Canadian physicians
Industrial Alliance Insurance and Financial Services (Industrial Alliance) has signed an agreement with MD Physician Services (MDPSI) to acquire the individual life insurance portfolio of MD Life Insurance Company (MD Life).
As per the agreement, MD Life intends to continue to manufacture the Group Annuity policy MD Stable Income Fund (MDSIF). MDSIF will continue to be distributed by MD Insurance Agency (MDIA), a subsidiary of MDPSI, and be managed by Industrial Alliance.
Apart from that, the agreement also provides for MDIA to offer Canadian physicians the full line of Industrial Alliance insurance and annuity products, including life insurance, health insurance and segregated funds.
The company said that MD Life is 55% owned by MDPSI, and 45% by Industrial Alliance. The acquired life insurance portfolio contains over 8,600 policies and riders, which generated $62m in premium income in 2008, corresponding to actuarial liabilities of $307m as at December 31, 2008. The acquired policies are already administered by Industrial Alliance.
Yvon Charest, president and CEO of Industrial Alliance, said: This represents a new milestone in the partnership that we have built with the Canadian Medical Association for over forty years. While this agreement allows us to continue to offer our life and health insurance and annuity products to Canadian physicians, it gives us the opportunity to recoup an entire business block of policies that we were already administering in our core life insurance line of business.
Brian Peters, president and CEO of MDPSI, said: This agreement will benefit our clients and representatives, since they will now have access to the full line of Industrial Alliance’s life and health insurance and annuity products, with the same quality service levels.