Not for distribution to U.S. news wire services or dissemination in the
QUEBEC CITY, Sept. 12, 2011 /CNW Telbec/ - Industrial Alliance Insurance and
Financial Services Inc. ("Industrial Alliance" or "the Company")
announces that it has concluded a private placement with the Caisse de
dépôt et placement du Québec for the purchase of 6,000,000 common
shares ("common shares") of Industrial Alliance at a price of $33.31
per common share, for gross proceeds of $199.9 million. The net
proceeds, after financing fees of 3.75%, amount to $192.4 million.
The private placement is expected to close on September 15, 2011,
subject to the necessary regulatory approvals and other conditions.
The proceeds will be added to the Company's capital and used for
general corporate purposes.
On a pro forma basis as of June 30, 2011, this issue will increase the
Company's solvency ratio by 14 percentage points. The Company
considers that its solvency ratio will remain above 175% as long as the
S&P/TSX remains above 9,600 points (compared to 10,600 points without
this issue) and will remain above 150% as long as the S&P/TSX remains
above 8,100 points (compared to 8,800 points without this issue).
The Company maintains its 2011 guidance regarding earnings per share and
return on shareholder's equity provided to the financial markets on
February 18, 2011 when it published its fourth quarter results.
The securities offered have not been and will not be registered under
the U.S. Securities Act of 1933, as amended, and may not be offered or
sold in the United States absent registration or an applicable
exemption from the registration requirements. This press release shall
not constitute an offer to sell or the solicitation of an offer to buy
nor shall there be any sale of the securities in any State in which
such offer, solicitation or sale would be unlawful.
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, 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; and
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 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
in Industrial Alliance's most recent annual report under the "Risk
Management" section of the Management's Discussion and Analysis and in
the "Management of Risks Associated with Financial Instruments" note to
Industrial Alliance's consolidated financial statements, available for
review at www.sedar.com.
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 press release 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. is a life and health insurance company with operations in all
regions of Canada as well as in the United States. The Company offers
a wide range of life and health insurance products, savings and
retirement plans, RRSPs, mutual and segregated funds, securities, auto
and home insurance, mortgage loans and other financial products and
services for both individuals and groups. The fourth largest life and
health insurance company in Canada, Industrial Alliance contributes to
the financial security of over three million Canadians, employs more
than 3,900 people and manages and administers more than $70 billion in
assets. Industrial Alliance stock is listed on the Toronto Stock
Exchange under the ticker symbol IAG.
SOURCE INDUSTRIAL ALLIANCE INSURANCE AND FINANCIAL SERVICES INC.
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