Imperial Life Assurance Company of Canada and Desjardins-Laurentian Financial Corporation Announce Sale of Laurentian Capital Corporation

Strategic Insights -

The Imperial Life Assurance Company of Canada and Desjardins-Laurentian Financial Corporation have announced that Laurentian Capital Corporation, a subsidiary of Imperial Life, will be acquired by American Annuity Group, Inc. for approximately $105.6 million in cash. The acquisition will also involve the repayment of approximately $45 million of Laurentian Capital's long-term debt. This transaction is part of Imperial Life's strategy to expand its insurance activities throughout Canada.

Key Takeaways:

  • Imperial Life and Desjardins-Laurentian Financial Corporation have jointly announced the sale of Laurentian Capital Corporation to American Annuity Group, Inc. for approximately $105.6 million in cash.
  • The acquisition also involves the repayment of approximately $45 million of Laurentian Capital's long-term debt.
  • Laurentian Capital Corporation has assets of $1.0 billion and total life insurance in force in excess of $2.6 billion.
  • The transaction is subject to certain conditions, including approval by the stockholders of Laurentian Capital and receipt of all necessary American and Canadian regulatory approvals.
  • Imperial Life, through its subsidiaries, offers a range of life, health, and annuity products as well as mutual funds to individual and groups.
  • The Mouvement des caisses Desjardins, a $76.9 billion financial institution, ranks sixth in Canada.

Statistics:

  • Acquisition price: approximately $105.6 million U.S. in cash.
  • Debt repayment: approximately $45 million U.S. of Laurentian Capital's long-term debt.
  • Assets: $1.0 billion U.S.
  • Total life insurance in force: in excess of $2.6 billion U.S.
  • Market value: Laurentian Capital Corporation was acquired in 1994 by Desjardins-Laurentian Financial Corporation.

Sources:

  • Business Wire, "The Imperial Life Assurance Company of Canada and Desjardins-Laurentian Financial Corporation Announce Sale of Laurentian Capital Corporation", May 26, 1995.