Mr. Mike Stickney reports

IA FINANCIAL CORPORATION STRENGTHENS INDIVIDUAL INSURANCE PRESENCE IN THE UNITED STATES WITH THE ACQUISITION OF VERICITY.

iA Financial Corp. Inc. the holding company of iA Financial Group, has entered into a definitive merger agreement whereby iA American Holdings Inc., a subsidiary of the company, will acquire Vericity Inc.

Vericity comprises two entities servicing the middle-market life insurance space, with synergies in between and combining artificial intelligence and rich data analytics to deliver innovative proprietary technology: Fidelity Life, an insurance carrier, and eFinancial, a direct-to-consumer digital agency. Vericity employs more than 400 employees.

"With this acquisition, we are adding scale to our already-well-established and successful U.S. individual life insurance business and creating value for our shareholders by building on our core insurance and distribution competencies," said Mike Stickney, executive vice-president, chief growth officer, U.S. operations, and co-head of acquisitions. "We look forward to working with Vericity to pursue further growth in the U.S. individual life insurance market with the addition of Fidelity Life while diversifying and complementing our distribution capabilities with direct-to-consumer reach through the eFinancial digital agency."

The purchase price of $170-million (U.S.) will be financed by iA with existing cash on hand and is expected to reduce the company's solvency ratio by about three percentage points. Closing is subject to obtaining the usual regulatory approvals in Canada and the United States and other customary closing conditions for a transaction of this type. Therefore, the merger is expected to close in the first half of 2024. Stockholders representing more than a majority of the issued and outstanding shares of Vericity common stock have adopted and approved the merger agreement. The transaction is expected to become slightly accretive to core EPS (earnings per share) in year 2 and to EPS in year 3.

About iA Financial Corp. Inc. (iA Financial Group)

iA Financial Group is one of the largest insurance and wealth management groups in Canada, with operations in the United States. Founded in 1892, it is an important Canadian public company and is listed on the Toronto Stock Exchange under the ticker symbols IAG (common shares) and IAF (preferred shares).

About Vericity Inc.

Vericity, through its subsidiaries, Fidelity Life Association and eFinancial LLC, is a leader in direct-to-consumer life insurance solutions. As an innovator in product design and distribution, the company makes life insurance affordable and accessible for middle-market consumers. With national call centres, digital and digitally enabled sales and underwriting processes and quick policy issuance, customers can easily get the coverage they need at a price they can afford. Vericity is a publicly traded company with shares listed on the Nasdaq Stock Market and is majority-owned by J.C. Flowers & Co.

Fidelity Life (Illinois domiciled) serves the middle-market space with proprietary and patented products, including term life, final expense, accidental death benefit and a work site offering. Fidelity Life has built a continuously evolving underwriting platform over many years through innovative solutions and agile deployment. In 2022, Fidelity Life's total gross written premium was $220-million.

eFinancial is a leading on-line and call-centre-based insurance agency, with a nationwide sales force of 200 agents delivering around 60,000 new insurance policies annually. Founded in 2001 and headquartered in Bellevue, Wash., eFinancial distributes policies for Fidelity Life alongside more than 20 other life insurers, utilizing a unique platform.

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