ALBUQUERQUE, NM – 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.”