Industrial Alliance Insurance and Financial Services agreed to buy Ontario-based CTL Corp. for an undisclosed sum.
CTL, the largest privately‑owned consumer vehicle finance company in Canada, is a non-traditional credit lender with a loan portfolio of more than $100 million originated through a network of car dealers.
The transaction is immediately accretive and expected to contribute full-year earnings of $0.04 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,” said Denis Ricard, executive V‑P 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.”