Industrial Alliance Signs an Agreement to Acquire MD Life's Life Insurance Portfolio
Industrial Alliance Insurance and Financial Services Inc. ("Industrial Alliance") is pleased to announce the signing of an agreement with MD Physician Services Inc. ("MDPSI") to acquire the individual life insurance portfolio of MD Life Insurance Company ("MD Life").
MD Life is a life and health insurance company that offers life insurance and annuity products to Canadian physicians. It is 55% owned by MDPSI, which itself is a Canadian Medical Association company, and 45% by Industrial Alliance. The acquired life insurance portfolio contains over 8,600 policies and riders, which generated $62 million in premium income in 2008, corresponding to actuarial liabilities of $307 million as at December 31, 2008. The acquired policies are already administered by Industrial Alliance.
Under the agreement, MD Life will continue to manufacture the Group Annuity policy MD Stable Income Fund ("MDSIF"). MDSIF will continue to be distributed by MD Insurance Agency Limited ("MDIA"), a subsidiary of MDPSI, and be managed by Industrial Alliance. The agreement also provides for MDIA to offer Canadian physicians the full line of Industrial Alliance insurance and annuity products, including life insurance, health insurance and segregated funds.
"This represents a new milestone in the partnership that we have built with the Canadian Medical Association for over forty years," said Yvon Charest, President and Chief Executive Officer of Industrial Alliance. "While this agreement allows us to continue to offer our life and health insurance and annuity products to Canadian physicians, it gives us the opportunity to recoup an entire business block of policies that we were already administering in our core life insurance line of business."
"I believe this deal strengthens our competitive position in our insurance offering and supports our strategy of being Canada’s leading advisor to physicians," said Brian Peters, President and Chief Executive Officer of MDPSI. "This agreement will benefit our clients and representatives, since they will now have access to the full line of Industrial Alliance’s life and health insurance and annuity products, with the same quality service levels."
The transaction is subject to governance, regulatory and ministerial approvals.
About MD Physican Services Inc.
MD Physician Services Inc. is a Canadian Medical Association company comprised of seven subsidiary companies, specializing in wealth and practice management. MDPSI, with assets under administration of more than $24 billion as of September 30, 2009, is dedicated to serving the financial and practice needs of physicians. More information can be found at md.cma.ca.
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 fourth 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 wellbeing of over three million Canadians, employs more than 3,400 people and manages and administers over $56 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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Vice-President, Investor Relations
Office: 418 684-5275