News

Southwest Reinsure, Inc. Announces Acquisition by iA Financial Group of Canada

Sep 26, 2017

Albuquerque, NM (September 26, 2017) – Southwest Reinsure, Inc. (SouthwestRe) announced today that it will be acquired by iA Financial Group (Industrial Alliance Insurance and Financial Services, Inc.) of Quebec City, Canada. The acquisition is subject to regulatory approval.

iA Financial Group (iA) is purchasing SouthwestRe in order to expand its footprint in the United States. Founded in 1892, iA is one of the largest life and health insurance companies in Canada as well as one of the largest F&I providers for auto dealerships in Canada. 

“This is an exciting moment for me and the entire SouthwestRe organization,” said James B. (Jim) Smith, SouthwestRe’s founder and Chief Executive Officer. "I am confident that what we started over 32 years ago can be the foundation for even greater growth in the future, especially given the resources and backing of iA.”

Eddie Eckert, the President of SouthwestRe, reinforced the point, stating “We will continue to provide the same level of service, commitment to excellence, and leadership in reinsurance applications in an increasingly complex regulatory environment that has been a benchmark of our Company.”

“Having built a solid presence in personal insurance in the US and after close consideration of strategic opportunities to enlarge our US footprint, we have chosen to make our next move in the automobile warranty market,” commented Yvon Charest, President and CEO of iA Financial Group. “This is a business where we have built tremendous know-how and experience over the last 20 years in Canada, which we now want to leverage in the larger US market.”

“The US market for extended warranties is about $15 billion or ten times that of Canada,” added Mike Stickney, President of iA American. “It is very fragmented with significant opportunity for growth and consolidation. With our solid track record in the extended warranty business in Canada together with the established presence of SouthwestRe in the US, we look forward to this new chapter in our US expansion with great anticipation.”

About SouthwestRe
Since 1985, SouthwestRe has grown into one of the nation’s leading Third Party Administrators and providers of reinsurance programs. Through independent agents and other distribution channels, SouthwestRe offers a complete line of Finance & Insurance (F&I) products to franchise and independent automobile dealers throughout the country, who in turn offer them to their customers. SouthwestRe is perhaps best known to the general public for service contracts sold under the names First Automotive, PowerRev, ProTrek, TruckGuard and to its clients for its Industry-leading reinsurance programs.

About iA Financial Group
Founded in 1892, iA Financial Group celebrates its 125th anniversary this year. iA Financial Group offers life and health insurance products, mutual and segregated funds, savings and retirement plans, securities, auto and home insurance, mortgages and car loans and other financial products and services for both individuals and groups. It is one of the four largest life and health insurance companies in Canada and one of the largest publicly traded Canadian companies. iA Financial Group stock is listed on the Toronto Stock Exchange under the ticker symbol IAG.

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