Builds on current product shelf for car dealers and enhances cross-Canada distribution
Quebec City, QC (Oct. 5, 2015) – Industrial Alliance Insurance and Financial Services Inc. (“Industrial Alliance” or “iA Financial Group”) today announced an agreement to acquire Ontario-based CTL Corp. (“CTL”), the largest privately-owned consumer vehicle finance company in Canada. The transaction was completed on October 2, 2015.
CTL is a non traditional credit lender with a loan portfolio of more than $100 million originated through a network of car dealers located across Canada. The transaction is immediately accretive and expected to contribute full-year earnings of $0.04 per share. The impact on the solvency ratio will be a decrease of approximately 4 percentage points.
“This strategic acquisition expands the breadth of financial and insurance products that we currently offer through car dealers, and is expected to accelerate the development of our Dealer Services division across Canada,” commented Denis Ricard, Executive Vice-President of iA Financial Group. “CTL brings valuable credit analysis, underwriting and collection expertise and systems for a diverse suite of car loans across the credit spectrum. We look forward to working together and view their addition to the Industrial Alliance family as important to the continued success of our car dealer business.”
“We are excited to join such a dynamic and forward-thinking organization” remarked Jeffrey Newhouse, President of CTL. “iA has demonstrated its commitment to enhancing its car dealer experience. Being part of iA’s Dealer Services division, we anticipate our synergies will strengthen our competitive advantage, while adding significant value to the services offered to Canadian consumers looking to acquire a vehicle through our network of dealer partners.”
RBC Capital Markets acted as exclusive financial advisor to CTL Corp.
About CTL Corp
CTL is a Canadian-owned, national auto finance company established in 2010 to serve Canadian consumers needing to purchase a vehicle, but unable to obtain traditional bank financing. CTL operates a five tier finance program serving the near-prime to sub-prime credit markets through a network of independent and franchise automotive dealers across Canada. The largest privately-owned vehicle finance company in Canada, CTL is entering its sixth year of operations with a solid growth record and balance sheet.
About iA Financial Group
Founded in 1892, iA Financial Group offers life and health insurance products, mutual and segregated funds, savings and retirement plans, RRSPs, securities, auto and home insurance, mortgages and car loans and other financial products and services for both individuals and groups. It is one of the four largest life and health insurance companies in Canada and one of the largest publicly-traded companies in the country. iA Financial Group stock is listed on the Toronto Stock Exchange under the ticker symbol IAG.
This press release may contain statements relating to strategies used by Industrial Alliance 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 Industrial Alliance 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 Industrial Alliance 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 Industrial Alliance; 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 2014 Management’s Discussion and Analysis and in the “Management of Risks Associated with Financial Instruments” note to Industrial Alliance’s consolidated financial statements, and elsewhere in Industrial Alliance’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. Industrial Alliance 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.
iA Financial Group is a business name and trademark of Industrial Alliance Insurance and Financial Services Inc.