Investia Financial Services and National Financial Insurance Agency, both wholly owned subsidiaries of Quebec City-based Industrial Alliance Insurance and Financial Services Inc. (IA), have reached an agreement to acquire certain divisions of Ten Star Group of Financial Service Companies, based in Waterdown, Ont.
Although details of the acquisition have yet to be released, the deal could affect more than 700 mutual fund advisors as well as Ten Stars’ group of insurance-licensed advisors. The transaction was confirmed by a Ten Star Group executive, in addition to several sources outside the firm.
Ten Star has been in the industry since 1976 and has offices in British Columbia, Ontario, Alberta, Quebec, Saskatchewan and Manitoba.The company is led by David Baird, president of Ten Star Group of Financial Service Companies, and includes: mutual fund dealer Ten Star Financial Inc., Ten Star Insurance Brokers Inc. (a property and casualty broker), Ten Star Life Insurance Brokers Inc. and Ten Star Group Benefits Specialists Inc.
National Financial intends to buy 100 per cent of Ten Star Life, while Investia intends to buy certain assets of Ten Star Financial.
An internal memo sent by a senior Ten Star executive to its staff and advisors stated: “In addition to its strong national presence, Investia has all the resources and capabilities required to support both Ten Star financial advisors and life insurance agents alike.”
René Chabot, Industrial Alliance’s executive vice president and chief actuary, recently told Finance et Investissement, Investment Executive‘s sister publication in Montreal, that the firm was currently in discussions about future acquisitions to help the company achieve growth across Canada. He also noted that IA is looking to devote at least $500 million toward expansion.
– With files from Finance et Investissement