The Caribbean-based financial services provider Sagicor Financial Company has entered into a definitive agreement to acquire the Canadian life insurance company ivari.
The deal – which is expected to close in the next six to 12 months – is subject to regulatory approvals and other customary closing conditions. A Press release revealed that the expected consideration, which will be paid in cash at the close of the transaction and subject to certain adjustments, is $325 million.
It was also revealed in a company release that prior to the close of the transaction, ivari is expected to have additional equity capital invested into its business to meet the implementation of IFRS 17 and the OSFI’s LICAT 2023 capital adequacy standard.
A subsidiary of Wilton Re, ivari is a major middle-market individual life insurance company that has been in operation for more than 80 years. The 250-strong Toronto company currently has about 700,000 policyholders across Canada.
According to Sagicor, the acquisition of ivari aligns with its business strategy of growing in individual life insurance, as well as diversifying into adjacent geographic markets. The acquisition will result in a Caribbean-headquartered international life insurance company with major operations in the Caribbean, the US, and Canada.
"Today we have taken a new step in shaping Sagicor's future,” said Sagicor group president and CEO Dodridge Miller. “The acquisition of ivari transforms Sagicor into a leading North American insurer serving the middle-market in addition to our market leadership in the Caribbean. We are excited about ivari's leading position in the Canadian market and its focus on improving its customers' financial well-being.”
"ivari is pleased to join the Sagicor Group of companies,” added ivari president and CEO Todd Lawrence. “Over the past several years, we have simplified our business model to focus on where we have scale and deep and meaningful relationships to provide exceptional service to our advisors and customers. ivari is focused on accelerating our growth in the underserved middle-market in Canada and distributes through a strong independent distribution network based on a long history of relationships built on trust.”
In 2020, insurance brokerage Hub International acquired the life insurance MGA business of ivari. As part of the transaction, ivari’s life insurance brokers and business were folded into a subsidiary of Hub, Hub Financial.
