Looking for new owners last summer, Laurentian Bank finally found a buyer for its brokerage services to individuals, acquired Thursday by iA Financial Group.
The group of insurance and wealth management companies, among the largest in Canada, announced at the end of the day Thursday that it had reached an agreement to transfer 16,000 customer accounts from Laurentian Bank to its subsidiary iA Gestion Privée heritage inc. (iAGPP).
The retail brokerage services of Laurentian Bank Securities Inc. represent assets under management of more than $2 billion.
Once the transaction is concluded, around thirty advisors will be invited to join iAGPP, the company specifies in a press release.
“This acquisition will support the strong growth of iA Private Wealth Management and expand its presence,” said Executive Vice President, Wealth Management at iA Financial Group and President and CEO of iAGPP, Stephan Bourbonnais. We look forward to welcoming these new advisors and helping them continue to secure their clients’ financial futures with confidence. »
The transaction, the amount of which was not disclosed on Thursday, should be concluded this summer, depending, among other things, on obtaining the required regulatory approvals, it is specified. It will only have a “marginal” impact on its solvency ratio, specifies iA Financial Group.
A strategic review
The seventh largest bank in the country in terms of assets, Laurentian announced last summer that it was examining its “strategic options,” while sources close to the matter confirmed that one of the avenues considered was a sale.
Laurentian had received purchase offers as part of this review, including at least one for the entire bank. However, the value of the proposals received would not have been considered advantageous for shareholders.
Then, in September, the bank’s management announced that it had completed its strategic review exercise and judged that the best path forward to maximize value for its shareholders was to accelerate the evolution of its strategic plan.
iA Financial Group, also known as Industrial Alliance, is a group of insurance and wealth management companies among the largest in Canada. It also carries out activities in the United States. Founded in 1892, the company is one of the largest public companies in the country.
In particular, it operates a network of more than 460 teams of independent investment advisors which manage $50 billion in assets under management.