TORONTO, Sept. 26, 2011 – Intact Financial Corporation (TSX: IFC) today announced that it has entered into a definitive share purchase agreement to sell AXA Canada’s life insurance business (“AXA Life Insurance”) to SSQ Life Insurance Company Inc. with the financial support of its majority shareholder, the Fonds de solidarit� FTQ, for $300 million. The transaction is conditional on the receipt of regulatory approvals and is expected to close in early 2012.
AXA Life Insurance, a subsidiary of AXA Canada, was acquired by Intact Financial Corporation as part of the $2.6 billion acquisition of AXA Canada. AXA Life Insurance, which has approximately 250 employees, offers health and life insurance products through a vast network of agents. In 2010, AXA Life Insurance premiums amounted to $169 million.
“Given our focus on home, auto and business insurance, it was important for us to identify a prospective acquirer that would pursue with success the activities of AXA Life Insurance and offer the best value proposition to its employees, distribution partners and customers,” said Charles Brindamour, Chief Executive Officer of Intact Financial Corporation. “We have found in SSQ Financial Group a strong operator and are confident that the transaction will be most beneficial to all AXA Life Insurance stakeholders.”
IFC intends to use the proceeds from this transaction to repay the term loan facility used to partially finance the acquisition of AXA Canada. As a result, the debt to total capital ratio of IFC is expected to be back in line with its target of 20% once the transaction closes.
Scotia Capital and Blake, Cassels & Graydon LLP acted as advisors to IFC.
About SSQ Financial Group
With over $2 billion in annual revenue and more than $7 billion in assets under management, SSQ Financial Group is a leading mutual diversified financial institution. The Group serves over 1 million customers and provides jobs to over 1,600 employees. SSQ, Life Insurance Company Inc.—SSQ Financial Group’s flagship company—has gained distinction as a group insurance leader and is noted for its vitality and expertise in the area of investment and retirement. SSQ Financial Group has also gained distinction for sustained growth in the general insurance sector (SSQ, General Insurance Company Inc.). For more information, visit www.ssq.ca
About Intact Financial Corporation
Intact Financial Corporation (www.intactfc.com) is the largest provider of property and casualty insurance in Canada. Intact offers home, auto and business insurance through Intact Insurance, Novex Group Insurance, belairdirect, GP Car and Home and BrokerLink.