Bank towers are shown from Bay Street in Toronto's financial district, on Wednesday, June 16, 2010.Adrien Vecz
Industrial Alliance Insurance and Financial Services Inc. continues to drive its expansion plans by acquisition in the wealth management and insurance industry after scooping up one of country's largest insurance distributors.
On Monday, Industrial Financial announced it has reached an agreement to acquire PPI Management Inc., one of the country's largest managing general agencies supporting more than 3,000 independent advisers across Canada.
The transaction is effective immediately.
Over the past several years, the investment giant, which manages and administers approximately $169.5-billion in assets, has been vocal on its plans to increase its distribution network across Canada.
In 2014, Industrial Alliance announced they were looking to devote at least $500-million toward expansion. Since then, the company has been true to its word, acquiring more than a dozen independent firms, including mutual fund dealers, securities brokerage firms and insurance agencies.
While the number of acquisitions is good news for iA Financial, it is also a clear indication that today's regulatory environment is forcing a number of smaller- to medium-sized firms to turn to larger players in order to survive against the increase in costs and compliance.
Last summer, iA Financial completed the acquisition of HollisWealth from Scotiabank, propelling iA to become one of the largest non-bank wealth-management firms in Canada.
This week's acquisitions is similar to the Hollis deal in that the adoption of PPI now places iA at the forefront of the insurance brokerage distribution in Canada.
"Combined with the Hollis Wealth network acquired last year, iA Financial Group is now positioned at the top of independent distribution for financial services in Canada, providing advisers with best-of-class services for both insurance and wealth management all under one roof," chief operating officer Denis Ricard said. "In addition, the PPI Advisory division that focuses on ultrahigh-net-worth clients brings a significant enhancement to iA Financial Group wealth advisers."
Established in 1978, PPI offers actuarial, tax and specialized expertise in all aspects of life insurance. PPI operates 15 offices across Canada, helping advisers place business through all major insurance companies across Canada.
Clare O’Hara