Back to newsroom

Industrial Alliance Makes its Entrance onto the Stock Brokerage Scene by Acquiring ISL-Lafferty Securities and the Assets of BNP (Canada) Securities

Quebec City,

News Release

Industrial-Alliance Life Insurance Company announced today that it has acquired ISL-Lafferty Securities Inc. and certain assets of BNP (Canada) Securities Inc., thereby marking its entry onto the stock brokerage scene. These two acquisitions will allow Industrial Alliance to manage initial assets of more than $180 million on behalf of some 1,500 clients.

"We are extremely pleased to acquire these two brokerage operations as they will allow us to benefit from the experience of firms that are well established in the stock brokerage market", stated Normand Pépin, who is Executive Vice-President, Life Subsidiaries and Vice-President and General Manager, Individual Insurance and Annuities at Industrial Alliance. "This sector represents an entirely new venue for Industrial Alliance. We’ve been trying to pierce this market for some time in order to complement our life and health insurance and investment funds operations. The acquisition of these stock brokerage firms falls straight within the scope of our development strategy, which is aimed at providing a full range of financial products to our agents so that they can in turn offer effective and integrated wealth management services to their clients."

Both ISL-Lafferty Securities and BNP (Canada) Securities are full service stock brokerage firms which offer a complete spectrum of portfolio investment management services to a clientele that is composed mainly of individual and small business investors. ISL-Lafferty Securities came into being in 1970 and is a member of the TSE and the Montreal Exchange. Its principal shareholder is the Ionian Financial Group, which holds 90% of the company’s issued and outstanding common stock. BNP (Canada) Securities has been operating in Canada since 1991 and is owned exclusively by BNP (Canada) Paribas, which is itself a wholly-owned subsidiary of BNP Paribas, one of the largest banking groups in the world. Both firms are registered with the Quebec Securities Commission and licensed to operate in the province of Quebec.

"The acquisition of ISL-Lafferty by Industrial Alliance is excellent news for our clients and representatives, who will be able to take full advantage of the expertise and solidity of a nationwide company," commented Strato Gavriil, who is the acting president and CEO at ISL-Lafferty Securities. "The Laval office, which presently serves as the company’s administrative offices, will be maintained in order to allow clients and representatives to continue conducting transactions as they have in the past."

For its part, BNP (Canada) Paribas is pleased that this transaction will allow its clients and representatives to ensure, within the Industrial Alliance family, a continued relationship of trust, as this has always been a priority for the BNP Paribas group in Canada.

The new organization that will emerge as a result of these two acquisitions will be called "Industrial Alliance Securities". Gaétan Plante, who has extensive experience in the world of banking, insurance and securities, will be named president of the new company. "We plan to build our team based on our present core of agents, whose experience and professionalism are already recognized assets," stated Mr. Plante. "Not only will we continue to conduct activities from offices in Laval and Montreal, but we also plan to immediately open an office in Quebec City."

With these new acquisitions, Industrial Alliance now owns subsidiaries in several key financial sectors, including life and health insurance, investment funds, trust companies, securities and general insurance. Industrial Alliance clients can therefore access a full range of products in the area of life and health insurance, savings and retirement plans, RRSPs, mutual funds, segregated funds and eventually securities such as stocks and bonds.

Today’s acquisition announcements are subject to the approval of regulatory authorities and both transactions are expected to be closed by the end of February.

About the Industrial Alliance Group
The Industrial Alliance Group is among the most solid and steadfast financial institutions in the country, where it is an undisputed industry leader in the field of insurance and financial services. The Group has operations across Canada through Industrial Alliance in Quebec City and its subsidiaries, including IA Pacific Life in Vancouver and National Life in Toronto. The seventh largest life and health insurance company in Canada, the Industrial Alliance Group insures over 1.5 million Canadians, employs more than 2,000 people and manages over $14.7 billion in total assets. Industrial Alliance stock is listed on the Toronto Stock Exchange under the ticker symbol "IAG". It is also listed on the TSE 300 and TSE 100, ranking Industrial Alliance as one of the 100 largest companies in Canada. For more information on Industrial Alliance, please visit our corporate website at www.inalco.com

- 30 -

For more information:
Jacques Carrière
Vice-President, Investor Relations
Office phone: (418) 684-5275
Cell phone: (418) 576-3624