Industrial Alliance Insurance and Financial Services Inc. today announced the conclusion of agreements to acquire all the shares of the holding companies controlling L’Excellence Life Insurance Co.

Montreal-based L’Excellence specializes in the manufacturing and distribution of personal life and health insurance products for individuals, corporations and professional associations.

The transaction also includes the brokerage companies with which L’Excellence is associated: Michel Rhéaume & Associés and Beaulne & Rhéaume Assurance Ltée.

The acquisition represents an investment for Industrial Alliance that could reach $67.3 million.

The Quebec City-based insurer says the transaction will be financed in part by issuing company shares. It estimates that the acquisition should help to increase its earnings per share by 4¢ starting in 2008.

L’Excellence offers a broad range of disability insurance, medical care and hospitalization benefits insurance, and life and accident insurance products. It primarily distributes its products in Quebec through independent brokers and authorized agents working with professional associations. Founded in 1962, L’Excellence in generated $81 million in premiums income in 2006.

L’Excellence and the brokerage companies associated with it employ some 170 people.

Today’s deal gives Industrial Alliance an entryway for its development in the individual disability and health insurance sector.

“It’s a complementary market for our life insurance activities. We plan to make L’Excellence our platform for the development of our activities in this new market segment, as much in Quebec as outside of the province,” says Normand Pépin, executive vp at Industrial Alliance.

“We expect to maintain the current status of L’Excellence, which will continue to operate as a separate company. We also plan to retain all of the employees and honour all of the agreements of L’Excellence’s brokers, on whom we count to actively continue to grow the companies.” Pépin adds.

“We’re pleased to be associated with a large-scale partner like Industrial Alliance, that has the financial resources to allow us to accelerate our growth in Quebec, and also outside of Quebec,” says Antoine Ponce, president and general manager of L’Excellence.

The transaction is subject to the approval of the Autorité des marchés financiers and the Toronto Stock Exchange. It is scheduled to close in the first quarter of 2008.