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iA Financial CEO Seeks Multibillion-Dollar Acquisition Target
9 Mar
Summary
- iA Financial aims for a multibillion-dollar acquisition as it hits record valuation.
- The Canadian insurer is prioritizing US life insurance businesses for its next major deal.
- The company has significant capital, C$1.4 billion, to fund a large transaction.
iA Financial Corp. is actively seeking a multibillion-dollar acquisition, according to CEO Denis Ricard, who believes smaller deals are no longer impactful enough for the Canadian insurer.
Ricard indicated that the firm's acquisition targets are primarily US life insurance businesses, although acquisitions outside North America are also being considered. The company possesses readily deployable excess capital of roughly C$1.4 billion, supplemented by nearly C$700 million in cash flow generated in 2025, enabling a substantial transaction without share issuance.
Despite recent market jitters surrounding artificial intelligence and its potential disruption to traditional business models, Ricard remains steadfast in his belief in the value of human advice. He views AI tools as beneficial for enhancing advisor productivity and client support, noting iA Financial's substantial annual investment in technology.
The insurer, formerly known as Industrial Alliance, has a history of significant acquisitions, including the C$600 million purchase of RF Capital Group Inc. last year and a US$720 million deal in 2020 for IAS Parent Holdings Inc. These acquisitions have bolstered its assets under management and administration to C$341 billion as of December 31.
Ricard drew parallels between current anxieties about AI and previous concerns raised by digital platforms like Wealthsimple. He expressed skepticism regarding the long-term profitability of such online-only entities, viewing them as passing trends.
