iA Financial Group announces plan to create a holding company
iA Financial Group today announces a plan to create a holding company that will comprise all iA Financial Group activities.
Since becoming a public company in 2000, iA Financial Group has evolved significantly through organic growth and targeted, strategic acquisitions in both Canada and the United States. Today it is one of the largest financial services companies in Canada.
“We believe it would be beneficial to adapt our legal structure to the current reality of our organization,” explains President and CEO Yvon Charest. “A holding company would give us more financial flexibility to execute our growth strategy and better reflect the diversification of our operations."
As a pan-Canadian financial services company, iA Financial Group competes with major players that currently benefit from this type of legal structure.
“It would clearly be to our advantage to have the same flexibility as our key competitors,” says Chief Operating Officer Denis Ricard. “We are committed to continued growth and that means becoming an increasingly important player in both the Canadian and U.S. markets.”
A holding company can be established through various avenues. iA Financial Group is submitting a private member's bill to the National Assembly of Quebec in the current or a future session proposing changes to the Act respecting Industrial-Alliance Life Insurance Company adopted on November 26, 1999.
More details about the new structure, including the requirement for shareholder and other approvals, will be announced in the coming months.
This press release may contain statements relating to strategies used by iA Financial Group or statements that are predictive in nature, that depend upon or refer to future events or conditions, or that include words such as “may”, “will”, “could”, “should”, “would”, “suspect”, “expect”, “anticipate”, “intend”, “plan”, “believe”, “estimate”, and “continue” (or the negative thereof), as well as words such as “objective” or “goal” or other similar words or expressions. Such statements constitute forward looking statements within the meaning of securities laws. Forward-looking statements include, but are not limited to, information concerning the Company’s possible or assumed future operating results. These statements are not historical facts; they represent only the Company’s expectations, estimates and projections regarding future events.
Although iA Financial Group believes that the expectations reflected in such forward-looking statements are reasonable, such statements involve risks and uncertainties, and undue reliance should not be placed on such statements. Certain material factors or assumptions are applied in making forward-looking statements, and actual results may differ materially from those expressed or implied in such statements. Factors that could cause actual results to differ materially from expectations include, but are not limited to: general business and economic conditions; level of competition and consolidation; changes in laws and regulations including tax laws; liquidity of iA Financial Group including the availability of financing to meet existing financial commitments on their expected maturity dates when required; accuracy of information received from counterparties and the ability of counterparties to meet their obligations; accuracy of accounting policies and actuarial methods used by iA Financial Group; insurance risks including mortality, morbidity, longevity and policyholder behaviour including the occurrence of natural or man made disasters, pandemic diseases and acts of terrorism.
Additional information about the material factors that could cause actual results to differ materially from expectations and about material factors or assumptions applied in making forward-looking statements may be found in the “Risk Management” section of the 2016 Management’s Discussion and Analysis and in the “Management of Risks Associated with Financial Instruments” note to iA Financial Group’s consolidated financial statements, and elsewhere in iA Financial Group’s filings with Canadian securities regulators, which are available for review at www.sedar.com. The forward-looking statements in this news release reflect the Company’s expectations as of the date of this press release. iA Financial Group does not undertake to update or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this document or to reflect the occurrence of unanticipated events, except as required by law.