Industrial Alliance Announces the Issuance of a Redemption Notice to Holders of 5.13% Subordinated Debentures due June 30, 2019

QUEBEC CITY, May 26, 2014 /CNW Telbec/ - Further to the approval of the Autorité des marchés financiers (Québec), Industrial Alliance Insurance and Financial Services Inc. ("Industrial Alliance" or the "Company") announces that it has sent today to all registered holders of its 5.13% subordinated debentures due June 30, 2019 (the "Debentures") a formal notice and instructions for the redemption of the Debentures. Industrial Alliance will redeem the Debentures, as of June 30, 2014, upon payment of a redemption amount of $1,025.65 for each $1,000 principal amount of Debentures, being equal to the aggregate of (i) $1,000 and (ii) all accrued and unpaid interest (the "Redemption Price"). The Redemption Price will be payable upon presentation and surrender of the Debentures called for redemption at Computershare Trust Company of Canada.

Forward-Looking Statements
This press release may contain statements relating to strategies used by Industrial Alliance or statements that are predictive in nature, that depend upon or refer to future events or conditions, or that include words such as "may", "will", "could", "should", "would", "suspect", "expect", "anticipate", "intend", "plan", "believe", "estimate", and "continue" (or the negative thereof), as well as words such as "objective" or "goal" or other similar words or expressions. Such statements constitute forward-looking statements within the meaning of securities laws. Forward-looking statements include, but are not limited to, the Company's expectations regarding the redemption of securities described in this press release and information concerning the Company's possible or assumed future operating results. These statements are not historical facts; they represent only the Company's expectations, estimates and projections regarding future events.

Although Industrial Alliance believes that the expectations reflected in such forward-looking statements are reasonable, such statements involve risks and uncertainties, and undue reliance should not be placed on such statements. Certain material factors or assumptions are applied in making forward-looking statements, and actual results may differ materially from those expressed or implied in such statements. Factors that could cause actual results to differ materially from expectations include, but are not limited to: general business and economic conditions; level of competition and consolidation; changes in laws and regulations including tax laws; liquidity of Industrial Alliance including the availability of financing to meet existing financial commitments on their expected maturity dates when required; accuracy of information received from counterparties and the ability of counterparties to meet their obligations; accuracy of accounting policies and actuarial methods used by Industrial Alliance; insurance risks including mortality, morbidity, longevity and policyholder behaviour including the occurrence of natural or man-made disasters, pandemic diseases and acts of terrorism.

Additional information about the material factors that could cause actual results to differ materially from expectations and about material factors or assumptions applied in making forward-looking statements may be found under "Risk Factors" in Industrial Alliance's most recent annual information form, in Industrial Alliance's most recent management's discussion and analysis under "Risk Management", in the "Management of Risks Associated with Financial Instruments" and "Insurance Contract Liabilities" notes to Industrial Alliance's most recent audited consolidated financial statements, and elsewhere in Industrial Alliance's filings with Canadian securities regulators, which are available for review at www.sedar.com.

The forward-looking statements in this news release reflect the Company's expectations as of the date of this document. Industrial Alliance does not undertake to update or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this document or to reflect the occurrence of unanticipated events, except as required by law.

About Industrial Alliance
Founded in 1892, Industrial Alliance Insurance and Financial Services Inc. operates throughout Canada as well as in the United States. The Company offers life and health insurance products, mutual and segregated funds, savings and retirement plans, securities, auto and home insurance, mortgage and car loans and other financial products and services for both individuals and groups. Ranked among the top four life and health insurance companies in Canada, Industrial Alliance is one of Canada's largest public companies and trades on the Toronto Stock Exchange under the ticker symbol IAG.

SOURCE Industrial Alliance Insurance and Financial Services Inc.

For further information:

Investor Relations
Grace Pollock
Office: 418 780-5945
Email: grace.pollock@inalco.com
Website: www.inalco.com