As the year 2016 draws to a close, The Insurance & Investment Journal reviews the 10 major transactions of the last 12 months, marked by continuing consolidation in the industry and by strategic investments linked to the ongoing technological revolution.
1 - Aviva Canada buys RBC General Insurance
Aviva Canada announced the acquisition of RBC General Insurance Company. Aviva also signed a 15-year agreement to enable Aviva to offer its property and casualty insurance products to RBC Insurance clients.
2 - Financial Horizons acquires Odyssey…
The transaction involved the purchase of all shares of Odyssey Insurance by Financial Horizons Group in exchange for cash and shares in Financial Horizons Group.
3 - … while Genstar intends to sell its stake in Financial Horizons
Genstar currently owns 75% of Financial Horizons Group’s equity while the MGA’s executives hold the remaining 25%. San Francisco-based Genstar acquired its stake in FHG in 2010.
4 - Excel to partner with Aditya Birla Sun Life Asset Management
Excel Funds has signed a deal with India’s Aditya Birla Sun Life Asset Management (ABSLAMC) to offer investment strategies to institutional investors.
5 - Sun Life Financial to acquire pension business of FWD Hong Kong
Sun Life Financial has announced its Hong Kong division will acquire the pension business of FWD Life Insurance Company and will also enter into an exclusive 15-year distribution agreement that will allow Sun Life HK to distribute its pension products through FWD's agency force in Hong Kong.
6 - iA Financial Group expands distribution
Whether it is group pension services (CRS), brokerage (Groupe Financier Moreau) or sales of products and services to car dealers (Groupe PPP), iA Financial Group continues to expand its distribution network and consolidates its position as one of the largest life insurance players in Canada and the largest in Quebec.
7 - Great-West expands in Ireland
Great-West Life, through its subsidiary Irish Life, has agreed to purchase Aviva Health Insurance Ireland and GloHealth Financial Services. Irish Life already controlled 49% of GloHealth, and this agreement will bring its ownership level to 100%.
8 - Securian buys ivari affiliates
The American firm Securian Financial Group has signed an agreement to purchase ivari's affiliate companies, including insurance manufacturers Canadian Premier Life Insurance and Legacy General Insurance, as well as the distributor CRI Canada and Selient.
9 - PartnerRe buys Aurigen
PartnerRe purchased Aurigen, one of Canada's life reinsurers. The cash consideration for the transaction is $375 million, and the acquisition will be financed with PartnerRe’s excess cash on hand; no debt or equity financing will be required.
10 - Invesco buys online advisor resource firm Jemstep
The American parent company of Invesco Canada, Invesco Ltd., has purchased Jemstep, a software company that supplies digital platforms to help financial advisors do business online.