Industrial Alliance Insurance and Financial Services Inc. has concluded the acquisition of all the outstanding shares of American-Amicable Holding, Inc., the Quebec-based company said Tuesday.

The deal was announced in April and closed on July 20. American-Amicable will operate as part of Industrial Alliances’ 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, Tex. and the IA American base in Scottsdale, Ariz.

The transaction, valued at US$145.3 million including excess capital of US$45 million, was financed from cash on hand. Industrial Alliance said the deal is expected to immediately add 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.

IE