IA Financial Group has acquired two blocks of business from New York–headquartered Prosperity Life Group, a release said on Monday.
The blocks are composed of final expense and term life products issued by Prosperity company S.USA Life Insurance Company Inc., based in Arizona. The blocks include over 115,000 policies worth more than US$100 million in annual premiums, the release said.
S.USA writes life, annuity and health products in 47 U.S. states and the District of Columbia, it said.
The transaction expands iA’s presence in the U.S., as Prosperity’s distribution network of 15,000 sales agents contracted through independent marketing organizations (IMOs) will be able to sell iA products.
About two-thirds of these agents already have a contractual agreement with American-Amicable Life Insurance Company, a subsidiary of iA Financial Group, to sell iA’s products, the release said.
“We look forward to welcoming new IMOs and agents and helping them continue to serve their customers well,” said Sean O’Brien, executive vice-president and chief growth officer of iA’s U.S. operations, in the release.
IA did not disclose the deal’s amount. The acquisition will be accretive from the first year on a core and reported basis, the release said. The insurer expects the acquistion to decrease iA Financial Group’s solvency ratio by about one percentage point.