Barbados-based financial services giant Sagicor Financial Company Ltd (SFC) has entered a “definitive agreement” to buy Canada-based individual life insurer Ivari, in a multi-million-dollar deal that is expected to double the size of its balance sheet.
The purchase, which is subject to the usual regulatory approvals, is estimated to be worth about CA$325 million (BDS$504 million).
SFC said in a statement on Thursday that the acquisition of Ivari aligned with its business strategy of growing in individual life insurance and diversifying into adjacent geographic markets.
Dodridge Miller, Group President and Chief Executive Officer of Sagicor, said it was a further step in “shaping Sagicor’s future”.
“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,” he said.
“It is a scaled business primed for growth, with CA$13.9 billion (BDS$21 billion) in well-managed assets as of year-end 2021 and a dedicated and focused management team. Through this acquisition, Sagicor will double the size of its balance sheet and deliver its over 180 years of experience in individual life insurance to the Canadian market,” Miller added.
Sagicor has a growing presence as a provider of life insurance products in the United States. It offers a wide range of products and services, including life, health, and general insurance, banking, pensions, annuities, and real estate.
Headquartered in Toronto, Ivari is described as a leading middle-market individual life insurer in the North American market that has been operating for over 80 years.
The company, which recorded net income of CA$74 million (BDS$114.7 million) last year, provides individual life and critical illness insurance solutions and currently has approximately 700 000 policyholders across Canada, and more than 250 employees.
President and Chief Executive Officer of Ivari, Todd Lawrence, said ivari was pleased to join the Sagicor group of companies and promised that their customers, distribution network, and other stakeholders would receive the same level of service to which they are accustomed.
“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,” he said.
“The team’s dedication to providing excellent service continues. We are excited by our strong growth prospects and what the future of Ivari holds as part of the Sagicor group of companies.”
SFC’s purchase of Ivari is expected to be financed largely through new debt and cash on hand, the company said in its statement.
The transaction is expected to close in the next six to 12 months.
SFC’s subsidiaries Sagicor Asset Management Inc. and Sagicor Life Inc. recently received approval from the Fair Trading Commission here to take over the asset management business of CIBC FirstCaribbean International Bank in Barbados.
