Industrial Alliance Sells its Caribbean Life Insurance Block of Business
Industrial Alliance Insurance and Financial Services Inc. (Industrial Alliance) announced today that it has signed an agreement to sell its Caribbean block of business to Sagicor Capital Life Insurance Company Limited, a subsidiary of the Barbados company Sagicor Life Inc. whose parent company is Sagicor Financial Corporation (Sagicor). This block is primarily made up of individual life insurance. It contains some 9,500 policies and generates annual premium income of close to $9 million Canadian. This transaction is subject to Caribbean regulatory approvals.
The block of business in this transaction was previously owned by The National Life Assurance Company of Canada, an Industrial Alliance subsidiary whose operations were integrated with those of the parent company in 2005. The related products have been distributed for over 40 years by a network of regional general agents, most of whom are based in Curaçao, Aruba and the Cayman Islands. This block of business, which is located in the periphery of the core North American market of Industrial Alliance, represents less than 0.3% of the Company’s premium income.
Sagicor’s main business is life insurance and financial services and its origins date back to 1840. Sagicor distributes its products and services in several Caribbean islands, as well as the United States. As at December 31, 2005, Sagicor had consolidated assets of $3.7 billion Canadian ($6.4 billion Barbados). The A.M. Best rating agency has assigned Sagicor Capital Life Insurance Company Limited and its parent company A (Excellent) ratings for their financial strength, the same rating as Industrial Alliance.
About Industrial Alliance
Founded in 1892, Industrial Alliance Insurance and Financial Services Inc. is a life and health insurance company that offers a wide range of life and health insurance products, savings and retirement plans, RRSPs, mutual and segregated funds, securities, auto and home insurance, mortgage loans and other financial products and services. The fifth largest life and health insurance company in Canada, Industrial Alliance is at the head of a large financial group – the Industrial Alliance Group – which has operations across Canada as well as in the Northwestern United States. Industrial Alliance insures over 2 million Canadians, employs more than 2,800 people and manages and administers over $44 billion in assets. Industrial Alliance stock is listed on the Toronto Stock Exchange under the ticker symbol IAG. Industrial Alliance is among the 100 largest public companies in Canada.
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