Industrial Alliance penetrates the individual disability and health insurance market by acquiring L'Excellence Life Insurance Company and the brokerage companies associated with it

    QUEBEC CITY, Dec. 13 /CNW Telbec/ - Industrial Alliance Insurance and
Financial Services Inc. ("Industrial Alliance" or "the Company") is pleased to
announce the conclusion of agreements to acquire all the shares of the holding
companies controlling L'Excellence Life Insurance Company ("L'Excellence"), a
company specializing in individual disability and health insurance, as well as
the brokerage companies with which L'Excellence is associated: Michel Rhéaume
& Associés and Beaulne & Rhéaume Assurance Ltée. This transaction gives
Industrial Alliance an entryway for its development in the individual
disability and health insurance sector.
    L'Excellence is an insurance company that specializes in the
manufacturing and distribution of personal life and health insurance products
for individuals, corporations and professional associations. It offers a broad
range of disability insurance, medical care and hospitalization benefits
insurance, and life and accident insurance products. L'Excellence primarily
distributes its products in Quebec through independent brokers and authorized
agents working with professional associations. Founded in 1962, L'Excellence
is a company with a Quebec charter that in 2006 generated $81 million in
premiums income. L'Excellence and the brokerage companies associated with it
employ some 170 people. The head office of L'Excellence is located in
    "We're pleased to acquire a company with a long and rich expertise in the
individual disability and health insurance market," said Normand Pépin,
Executive Vice-President at Industrial Alliance. "It's a complementary market
for our life insurance activities. We plan to make L'Excellence our platform
for the development of our activities in this new market segment, as much in
Quebec as outside of the province. To succeed, we expect to maintain the
current status of L'Excellence, which will continue to operate as a separate
company. We also plan to retain all of the employees and honour all of the
agreements of L'Excellence's brokers, on whom we count to actively continue to
grow the companies."
    "We're pleased to be associated with a large-scale partner like
Industrial Alliance, that has the financial resources to allow us to
accelerate our growth in Quebec, and also outside of Quebec," said Antoine
Ponce, President and General Manager of L'Excellence. "Our association with
Industrial Alliance will also allow us to further improve our personalized
service practice, which has always been our trademark."
    "Over the last 30 years, we carved out a leadership position in the
market for products tailored to specific needs distributed through specialized
networks," added Daniel Riopel, President and General Manager of Michel
Rhéaume & Associés. "This association lets us expand the range of products
that we make available to our brokers, who could also have access to different
Industrial Alliance wealth management products."
    The acquisition of L'Excellence and the brokerage companies associated
with it represents an investment for Industrial Alliance that could reach
$67.3 million, if certain conditions are respected and if existing debts are
taken into account. The transaction will be financed in part by issuing
company shares. The issued shares will be bought back as quickly as possible
in order to eliminate any dilution for shareholders. The buybacks will be made
under the normal course issuer bid currently in effect. The Company estimates
that the acquisition should help to increase its earnings per share by $0.04
starting in 2008.

    The transaction is subject to the approval of the Autorité des marchés
financiers and the Toronto Stock Exchange. It is scheduled to be concluded in
the first quarter of 2008.

    About Industrial Alliance

    Founded in 1892, Industrial Alliance Insurance and Financial Services
Inc. is a life and health insurance company that 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. The fifth largest life and health
insurance company in Canada, Industrial Alliance is at the head of a large
financial group, which has operations across Canada as well as in the western
United States. Industrial Alliance contributes to the financial well-being of
over 3 million Canadians, employs more than 2,900 people and manages and
administers over $50 billion in assets. Industrial Alliance stock is listed on
the Toronto Stock Exchange under the ticker symbol IAG. Industrial Alliance is
among the 100 largest public companies in Canada.

For further information:

For further information: Jacques Carrière, Vice-President, Investor
Relations, (418) 684-5275, cell: (418) 576-3624,,

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