Insurance acquisition to expand auto insurance offerings at dealerships

The transaction will provide consumers with additional insurance products and services at motor vehicle point-of-sale

Motor & Fleet

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Industrial Alliance and Financial Service Inc. (“Industrial Alliance” or “iA Financial Group”) has agreed to purchase CTL Corp (“CTL”), a consumer vehicle financial company based in Ontario.
 
CTL, a private credit lender with a loan portfolio exceeding $100 million, operates through a network of Canadian car dealers. This acquisition will expand the insurance products offered at these organizations, allowing consumers to purchase a wider array of insurance products when acquiring a vehicle.
 
"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," Denis Ricard, Executive Vice President of iA Financial Group.
 
This could have an adverse effect on broker business, as the dealer’s insurance representatives may beat other insurance professionals to the punch. This has the potential to reduce the number of auto policies that brokers write annually.
 
In addition to sales, however, Ricard believes that the partnership will allow the entities to provide a number of supplemental insurance services at participating dealerships. 
 
"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," he said.
 
The deal was finalized on October 2, but terms of the transaction have not been disclosed. 
 

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