Last week, insurer Industrial Alliance (iA)
made a deal to purchase advisory firm HollisWealth, an acquisition that the company says will make it one of the largest non-bank wealth management firms in the country.
We spoke to a senior executive at iA to find out more about the strategy behind the latest purchase, and what it means for business.
“The acquisition is a continuation of iA’s commitment to growth in wealth,” Carl Mustos, president of iA Clarington Investments, a subsidiary of iA Financial Group, told
Insurance Business.
With the addition of HollisWealth, the company will have over $75bn in assets under administration, Mustos explained.
The company is on a roll when it comes to acquisitions, having bought up 25 companies since 2000. Just last month iA announced that it had agreed to purchase auto insurance distributor Groupe PPP Ltée.
“We have a history of successfully acquiring companies that fit our strategic direction,” Mustos said.
And it seems the insurer has no plans to stop following its latest acquisition – which is its largest to date.
The near-term focus is to complete the HollisWealth deal and work on integrating the company, but iA will keep evaluating opportunities across a number of areas of wealth management, according to Mustos.
“We continue to be active when opportunities present themselves,” he added.
What about the advantages to its broker partners?
“Our increased scale will enable us to invest in new and innovative products for our advisors’ clients – giving our network the choices to best compete and service clients in an evolving marketplace,” Mustos explained.
iA is also hoping that the addition of HollisWealth, which it bought from Scotiabank, a major commercial bank, will help boost its profile, Mustos said.
“The HollisWealth acquisition creates greater visibility for our brands nationally, which we believe will help advisors attract and retain clients.”
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