Industrial Alliance To Acquire Money Concepts and AEGON Dealer Services Canada
Purchase will continue to expand IA's wealth management business
Industrial Alliance Insurance and Financial Services Inc. ("Industrial Alliance" or "IA") and AEGON Canada Inc. are pleased to announce that they have entered an agreement for IA to acquire 100% of the shares of National Financial Corporation ("NFC"), the parent company of AEGON Dealer Services Canada Inc., Money Concepts (Canada) Limited and National Financial Insurance Agency Inc.
NFC and its subsidiaries have $2.8 billion in assets under administration and over 350 financial advisors operating in 65 branches across Canada. When combined with IA’s existing mutual fund dealerships, Investia Financial Services and FundEX Investments, IA will have over $17 billion in mutual fund assets under administration and over 2,500 financial advisors, making it one of the five largest non-bank owned mutual fund dealerships in Canada.
Headquartered in Toronto, AEGON Dealer Services is an MFDA member mutual fund dealer with over 18 years of experience in Canada. Money Concepts operates the largest network of financial services franchises in Canada, where it has over 24 years of experience. Both companies offer a wide range of mutual funds and financial services to a retail clientele across Canada.
After completion of the transaction, AEGON Dealer Services will be merged with Investia, which is expected to offer clients more product choices as well as enhanced technology and back-office support. The Money Concepts brand name and business model will remain intact under Investia.
National Financial Insurance Agency is a nationally registered insurance Managing General Agency that currently provides, and will continue to provide, insurance services to Money Concepts advisors.
"We look forward to working with such highly-qualified and experienced financial advisors, including representatives from the largest network of financial services franchises in Canada," stated Normand Pépin, Executive Vice-President of Industrial Alliance. "This agreement allows us to further expand the scope and diversity of our distribution networks Canada wide. We expect that, over time, all related distribution channels within IA will benefit from a broader product and service offering, in addition to economies of scale and scope associated with the sharing of support and services, resulting in greater efficiencies."
AEGON Canada sought a buyer with distribution as a core part of their strategy, one who would value the employees and preserve the autonomy of the businesses’ associated financial advisors, while providing them with additional value propositions. "We are pleased that Industrial Alliance met every one of these objectives," said Paul Reaburn, President and CEO of AEGON Canada. "The sale of this distribution business allows AEGON Canada to focus on our core business, which is the manufacturing of individual life insurance and annuity products."
The transaction will be Industrial Alliance's thirteenth acquisition in the wealth management market since the early 2000s. It is subject to regulatory approval and is expected to close by June 30, 2008.
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, which has operations across Canada as well as in the Western United States. Industrial Alliance contributes to the financial well-being of over 3 million Canadians, employs more than 3,100 people and manages and administers over $50 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.
About AEGON Canada
AEGON Canada Inc. is a leading Canadian provider of individual life insurance and investment products with over $10.8 billion in assets under management and 80 years of expertise in the Canadian marketplace. AEGON Canada is a member of the AEGON Group. AEGON is one of the world’s largest life insurance and pension groups, which employs more than 30,000 people worldwide and serves millions of customers in over 20 markets throughout the Americas, Europe and Asia.
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Industrial Alliance - Jacques Carrière
Vice-President, Investor Relations
Office: 418 684-5275
AEGON Canada - Inga Eichenbaum
Manager, Coporate Communications
Office: 416 883-5417