February 6, 2018 09:45
The company’s insurance and wealth management iA financial Group has announced its intention to create a holding company grouping all of the group’s activities.
The president and chief executive officer, Yvon Charest, has said, in an interview with the Journal of insurance, that he wanted to put himself on the same footing as its competitors, Sun Life Financial, Manulife and Great-West, which all have a holding company.
«Them they have one. We don’t have any. We want to have the same financial flexibility that these large companies. It was a natural step in our development «, explained Mr. Charest.
The creation of a holding company would also give the insurer a greater financial flexibility and would allow an increase in the speed of action for future acquisitions and the financing actions.
«We nourish the ambition to continue our growth in the canadian scene and in the United States,» says the chief operating officer, Denis Ricard. The company has made a total of 35 acquisitions since its demutualization 18 years ago. The last issuance of the debentures issued by the company amounted to $ 400 million for 2017. «The holding company would allow us to carry out larger acquisitions,» added Mr. Charest.
Waiting for approval
The modalities for the implementation of this new structure will be known in the coming months. ai must first obtain the approval of the shareholders at its annual general meeting, which will be held may 10 in Quebec.
The company shall also address to the national Assembly of Québec for the adoption of a private act for the purpose of proposing certain amendments to the Act relating to theIndustrial Alliance Insurance Company on the Life. Mr. Charest is expected to get a response in June. The final approval will be by theAuthority of the financial markets at the beginning of the summer or early autumn, according to the predictions of Mr. Charest.