Industrial Alliance Expands Product Offer to Car Dealers
In the Market of Extended Warranties for Used Cars
Industrial Alliance Insurance and Financial Services Inc. ("Industrial Alliance") announced today the signing of an agreement to acquire all the outstanding shares of privately-owned National Warranties MRWV Limited ("National Warranty"), located in Laval. The transaction was carried out through the Company’s wholly-owned subsidiary IA Pacific ("IAP").
National Warranty sells extended warranties predominately through independent used car dealers in the province of Quebec. National Warranty has about 20 employees and approximately $6 million in annual premiums.
Grégory Veilleux, President of National Warranty, is pleased with the transaction and wishes to assure clients, employees and business partners that everything will stay the same. "We’ll continue to offer the same high quality service to our customers, with the highest respect for the extended warranties in effect. All our employees will stay with the company and continue to benefit from the same working environment," he said.
"This agreement with National Warranty builds upon our growing creditor insurance business by enhancing our product portfolio and giving us access to the used car dealer market," said Gerry Bouwers, President and Chief Operating Officer of IAP. "It is estimated that used cars will represent close to 70% of all light vehicle sales in Canada by 2013 and that the demand for extended warranties will grow accordingly."
The amount of the transaction between IAP and National Warranty was not disclosed. In the short term, this acquisition will have a neutral effect on Industrial Alliance’s earnings per share.
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 in all regions of Canada, as well as in the United States. Industrial Alliance contributes to the financial wellbeing of over three million Canadians, employs more than 3,500 people and manages and administers some $60 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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