iA Financial Group focuses high-net-worth growth strategy exclusively on independent advice channel with the sale of iA Investment Counsel
iA Financial Corporation Inc. (the “Company”), the holding company of iA Financial Group, today announced that it has entered into an agreement for the sale of iA Investment Counsel Inc. (“iAIC”) to CWB Financial Group (“CWB”).
The sale reflects iA Financial Group’s decision to focus on serving the wealth management needs of high-net-worth Canadians exclusively through its expanding network of independent, entrepreneur-owned investment advisory practices.
iAIC is comprised of two of Canada’s well-known private client firms: T.E. Wealth, founded in 1972, and Leon Frazer & Associates, founded in 1939. “After careful deliberation, we determined that the sale of T.E. Wealth and Leon Frazer will help advance our strategic vision for growth,” said Denis Ricard, President & CEO of iA Financial Group. “Both companies have served the private client needs of Canadian families, pension funds and foundations for generations, and bring a legacy of high-quality client service to their new home at CWB Wealth Management.”
“We believe in the value of advice and are committed to further expanding our extensive network of independent advisors,” said Carl Mustos, Executive Vice-President of iA Wealth. “The sale of T.E. Wealth and Leon Frazer enables us to focus fully on investing in and building out our growing presence in the high-net-worth segment exclusively through the independent channel.”
“We are very excited to welcome T.E. Wealth and Leon Frazer to the CWB family,” said Matt Evans, President & CEO of CWB Wealth Management. “Both businesses have a distinguished history and exceptional potential for future growth. They enhance our private wealth presence, extend our capabilities, and represent an ideal complement to CWB’s unique market position with a focus on serving successful entrepreneurs and business families across Canada.”
The transaction will increase the Company’s solvency ratio by approximately one percentage point, and will have no impact on iA Financial Group’s other businesses. Subject to regulatory approval, the transaction is expected to close in the May–July period of 2020.
Scotiabank acted as exclusive financial advisor to iA Financial Group on the transaction.
About iA Financial Group
iA Financial Group is one of the largest insurance and wealth management groups in Canada, with operations in the United States. Founded in 1892, it is one of Canada’s largest public companies and is listed on the Toronto Stock Exchange under the ticker symbols IAG (common shares) and IAF (preferred shares).
About iA Wealth
iA Wealth is the wealth management division of iA Financial Group. iA Wealth provides a full range of financial advisory and wealth management services to Canadian investors though iA Securities Inc., Investia Financial Services Inc. and FundEX Investments Inc. iA Wealth's investment fund manufacturing arm, IA Clarington Investments Inc., offers a wide range of products, including actively managed mutual funds, managed portfolio solutions, Active ETF Series and socially responsible investments. iA Wealth strives to be the leader in creating and preserving wealth for individual Canadians working with independent advisors.
About CWB Financial Group
CWB Financial Group (CWB) is a diversified financial services organization known for a highly proactive client experience serving businesses and individuals across Canada. Operating from headquarters in Edmonton, Alberta, CWB's key business lines include full service business and personal banking offered through branch locations of Canadian Western Bank and Internet banking services provided by Motive Financial. Highly responsive nation-wide specialized financing is delivered under the banners of CWB Optimum Mortgage, CWB Equipment Financing, CWB National Leasing, CWB Maxium Financial and CWB Franchise Finance. Trust services are offered through CWB Trust Services. Comprehensive wealth management offerings are provided through CWB Wealth Management, which includes the businesses of CWB McLean & Partners Wealth Management and Canadian Western Financial. As a public company on the Toronto Stock Exchange (TSX), CWB trades under the symbols "CWB" (common shares), "CWB.PR.B" (Series 5 Preferred Shares), "CWB.PR.C" (Series 7 Preferred Shares) and "CWB.PR.D" (Series 9 Preferred Shares). Learn more at cwb.com.
About CWB Wealth Management
CWB Wealth Management Ltd. (CWB WM) is part of CWB Financial Group, a diversified financial services group providing specialized services in business and personal banking, trust and wealth management across Canada. CWB WM provides discretionary portfolio management and investment advisory services, as well as financial planning products and services. Along with our subsidiaries, CWB McLean & Partners Wealth Management Ltd. and Canadian Western Financial Ltd., we provide a range of investment services and solutions to high-net-worth, institutional and individual investors including mutual funds, pooled funds and separately managed accounts.
This news 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”, “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, in this news release the expected closing time of the Offering and the use of proceeds. These statements are not historical facts; they represent only 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 Management’s Discussion and Analysis for the year 2019 and in the “Management of Risks Associated with Financial Instruments” note to the audited consolidated financial statements for the year ended December 31, 2019, and elsewhere in iA Financial Group’s filings with Canadian securities regulators, which are available for review at sedar.com.
The forward-looking statements in this news release reflect iA Financial Group’s expectations as of the date of this document. 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.
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