IA Financial Corp. has signed a deal to buy U.S. insurance company Vericity Inc. for US$170 million in a move to grow its business in the United States.

Vericity includes Fidelity Life, an insurance carrier, and eFinancial, a direct-to-consumer online and call-centre-based insurance agency. 

It employs more than 400 people.

IA says the deal will grow its already well-established U.S. individual life insurance business and diversify and complement its distribution capabilities.

The deal is expected to close in the first half of 2024, subject to regulatory approvals and customary closing conditions.

IA Financial Group is one of the largest insurance and wealth management groups in Canada.

This report by The Canadian Press was first published Oct. 3, 2023.