Mr. Denis Ricard reports

INDUSTRIAL ALLIANCE AGREES TO ACQUIRE PRIVATELY-OWNED CTL CORPORATION

Industrial Alliance Insurance and Financial Services Inc. has agreed to acquire Ontario-based CTL Corp., the largest privately owned consumer vehicle finance company in Canada. The transaction was completed on Oct. 2, 2015.

CTL is a non-traditional credit lender with a loan portfolio of more than $100-million originated through a network of car dealers located across Canada. The transaction is immediately accretive and expected to contribute full-year earnings of four cents per share. The impact on the solvency ratio will be a decrease of approximately four percentage points.

"This strategic acquisition expands the breadth of financial and insurance products that we currently offer through car dealers, and is expected to accelerate the development of our dealer services division across Canada," commented Denis Ricard, executive vice-president of IA Financial Group. "CTL brings valuable credit analysis, underwriting and collection expertise and systems for a diverse suite of car loans across the credit spectrum. We look forward to working together and view their addition to the Industrial Alliance family as important to the continued success of our car dealer business."

"We are excited to join such a dynamic and forward-thinking organization," remarked Jeffrey Newhouse, president of CTL. "IA has demonstrated its commitment to enhancing its car dealer experience. Being part of IA's dealer services division, we anticipate our synergies will strengthen our competitive advantage, while adding significant value to the services offered to Canadian consumers looking to acquire a vehicle through our network of dealer partners."

RBC Capital Markets acted as exclusive financial adviser to CTL Corp.

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