iA, a unit of Canadian insurance coverage firm iA Monetary Group, has concluded the acquisition of Vericity in an all-cash transaction valued at $170m (C$233.09m).
The acquired firm, based mostly within the US, offers D2C life insurance coverage options.
Backed by personal funding firm JC Flowers & Co, Vericity operates via its subsidiaries Constancy Life Affiliation and eFinancial and has a workforce of greater than 400.
It goals to supply “reasonably priced” and accessible life insurance coverage options to middle-market customers via digital gross sales, swift coverage issuance and a give attention to non-medically underwritten merchandise on the level of sale.
The definitive merger settlement signed in October 2023 led to iA buying all issued and excellent frequent inventory of Vericity at $11.43 per share.
This buy worth marked a 101% premium over Vericity’s closing share worth of $5.7 on the final buying and selling day earlier than the announcement (2 October 2023).
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For iA, the deal goals to reinforce its place within the mid-market life insurance coverage section by integrating an insurance coverage provider and a digital company.
iA Monetary Group govt vice-president and chief development officer of US operations Sean O’Brien mentioned: “For a number of years now, iA Monetary Group has loved robust development in its particular person life insurance coverage enterprise in the US.
“This acquisition will allow us to proceed this robust development, improve the scale of our operations on this discipline south of the border, and provides us entry to a digital distribution platform. Synergies are to be anticipated, particularly as a consequence of Vericity’s distribution capacities with direct entry to customers.”
With the conclusion of the deal, Vericity has now ceased buying and selling on the Nasdaq Capital Market.
Vericity CEO James Hohmann mentioned: “This milestone marks the beginning of a brand new chapter for Vericity and we’re proud to hitch the iA household. Combining our groups and assets unlocks thrilling new alternatives to increase the capabilities of Constancy Life and eFinancial to make life insurance coverage extra accessible and reasonably priced for on a regular basis Individuals.
“We additionally see considerable prospects forward for our staff who will play a pivotal position in charting and reaching our future development potential.”
