Acquisition Alert: A-Capholdings Takes Over Sentinel Life Insurance

Sentinel Security Life Insurance Company is a member of the A-CAP family. Sentinel Financial Group was acquired by Connect Financial Services, a holding company representing the purchasers Kang Family Assets Ltd., in 2016. Connect Financial Services planned to maintain the Sentinel brand and head office in Saskatoon. A-CAP is a holding company that owns multiple insurance and financial businesses, including primary insurance carriers such as Atlantic Coast Life Insurance Company and Sentinel Security Life Insurance Company. In 2020, AmeriLife Group, LLC acquired Secure Administrative Solutions (SAS) from A-CAP, further expanding its strategic partnership.

Connect Financial Services acquires Sentinel Financial Group

Connect Financial Services, a holding company representing the purchasers Kang Family Assets Ltd., has acquired Sentinel Financial Group through a share acquisition. Connect Financial plans to maintain the Sentinel brand, as well as the head office in Saskatoon. Sentinel Financial Group is made up of three companies: Sentinel Life Management Corp., an insurance brokerage incorporated in 1981; Sentinel Financial Management Corp., a mutual fund dealership established in 1995; and Sentinel Mortgage Corp., which was established in 2001. Sentinel is licensed to sell life insurance in all provinces west of Quebec and mutual funds in all provinces west of Ontario. The company has 290 independent advisors.

Connect Financial Services plans to grow the Sentinel business both organically and through other acquisitions. The company will focus its growth efforts initially in the Prairies, where Sentinel’s operations are currently concentrated, followed by growth in Ontario and British Columbia. This deal marks the first acquisition for Connect Financial, which has a mandate of conducting strategic acquisitions.

Finding an acquisition partner committed to growth was crucial for Sentinel, according to Merlin Chouinard, Sentinel’s president and owner. Chouinard plans to stay on board as president for three years to assist with the transition. Fredric Wing, chief operating officer of Connect Financial and newly appointed CEO of Sentinel, has worked at senior levels with insurance and financial services companies across Canada.

This acquisition is similar to A-CAP's purchase of Sentinel Security Life Insurance Company. A-CAP is a holding company that owns multiple insurance and financial businesses. Sentinel Security Life Insurance Company is a member of the A-CAP family, as indicated on its website. In 2020, AmeriLife acquired Secure Administrative Solutions (SAS) from A-CAP, demonstrating A-CAP's involvement in acquisitions and strategic partnerships.

Sentinel's future growth plans

Sentinel's acquisition by Connect Financial Services, a holding company representing Kang Family Assets Ltd., marks a significant step towards its growth goals. Connect Financial's mandate of conducting strategic acquisitions aligns with Sentinel's ambition to expand its business and scale. The company plans to first focus its growth efforts in the Prairies, where Sentinel already has a strong presence, and then expand into Ontario and British Columbia.

Sentinel's future growth strategy also includes adding 250 advisors in the next three years and hiring additional staff members to support this expansion. The company's commitment to critical mass, especially in the mutual fund side of the business, underscores the importance of scaling to remain competitive in the industry.

By partnering with A-CAP, Sentinel gains access to a diverse range of businesses, including primary insurance carriers, investment advisers, reinsurance vehicles, and marketing organizations. This synergy will enable Sentinel to enhance its offerings and reach a wider audience.

Overall, Sentinel's future growth plans involve a combination of organic expansion, strategic acquisitions, and leveraging partnerships to increase its scale, capabilities, and market presence.

A-CAP's portfolio of insurance and financial businesses

A-CAP is a holding company that owns multiple insurance and financial businesses, including primary insurance carriers, an SEC-registered investment advisor, reinsurance vehicles, and marketing organisations. Sentinel Security Life Insurance Company is one of its primary insurance carriers. Sentinel is made up of three companies: Sentinel Life Management Corp., an insurance brokerage; Sentinel Financial Management Corp., a mutual fund dealership; and Sentinel Mortgage Corp. Sentinel is licensed to sell life insurance in all provinces west of Quebec and mutual funds in all provinces west of Ontario. The company has 290 independent advisors and plans to add 250 more in the next three years.

A-CAP's portfolio also includes Atlantic Coast Life Insurance Company as one of its primary insurance carriers. The company provides a range of insurance and retirement solutions, including Medicare Supplement insurance products and voluntary benefit products sold through its worksite distribution channel.

In addition to insurance carriers, A-CAP's portfolio includes an SEC-registered investment advisor. This indicates that the company provides investment advice to clients and manages investment portfolios on their behalf. Reinsurance vehicles are also part of A-CAP's portfolio, which means they take on the risk from primary insurance carriers by providing them with insurance policies to protect against potential losses.

A-CAP's marketing organisations are another key component of its portfolio. These organisations play a crucial role in promoting and distributing the products and services offered by the company's insurance and financial businesses.

With a diverse range of insurance and financial businesses under its umbrella, A-CAP offers comprehensive services to policyholders, insurance company clients, and capital partners. The company's management team has broad knowledge across the insurance and investment sectors, as well as diverse experience to meet the varying needs of its clients.

AmeriLife's acquisition of Secure Administrative Solutions (SAS)

AmeriLife has expanded its third-party administration capabilities and strategic partnership with A-CAP through its acquisition of Secure Administrative Solutions (SAS). This acquisition is a key part of AmeriLife's initiative to expand its third-party administrator capabilities.

SAS is a multi-product, third-party administrator that provides administrative support for Medicare Supplement, fixed annuity, and life programs. This acquisition enhances AmeriLife's capabilities and elevates its ability to deliver world-class technology across its TPA platform. With the addition of SAS, AmeriLife can now offer turnkey solutions for carriers, agents, and consumers, including technology capabilities such as e-app, e-contracting, and voice signature capabilities.

SAS joins two other third-party administrators under the AmeriLife umbrella: American Insurance Administrators (AIA) and American Benefits Administrators (ABA). AIA specializes in the administration of Medicare Supplement insurance products, while ABA specializes in the administration of voluntary benefit products sold through the company's worksite distribution channel.

The acquisition of SAS aligns with AmeriLife's history of partnering with insurance carriers to develop and bring proprietary products to the marketplace. AmeriLife's third-party administrative capabilities include agent contracting, policyholder support, billing and collections, new business processing, underwriting, claims processing, commission payments, and call center support.

This strategic acquisition further expands AmeriLife's ability to offer turnkey solutions across all product lines and to carriers of all sizes. By leveraging existing operations and maximizing scale, AmeriLife plans to build on the strengths of the separate organizations. AIA and SAS will maintain their individual branding but will merge under the leadership of SAS president, Janelle Boudrero, who has 16 years of leadership experience in insurance and business operations.

A-CAP's management team and their experience

A-CAP is a holding company with a diverse portfolio of insurance and financial businesses. Its management team has extensive knowledge and experience in the insurance and investment sectors. The team is led by Scott R. Perry, who is the Chairman and CEO of A-CAP. Perry has cultivated a strong strategic relationship with SAS, as evidenced by his comments on the acquisition of the company by AmeriLife.

A-CAP's management team has a broad knowledge of the insurance and investment sectors, and they provide comprehensive services to policyholders, insurance company clients, and capital partners. The team's diverse experience is an asset to the company as it allows them to offer a unique and synergistic platform to the businesses they manage.

One of the key members of the management team is Janelle Boudrero, who has 16 years of leadership experience in the insurance and business operations fields. Boudrero has successfully led and overseen operations for health, life, and annuity lines of business. She has also played a crucial role in creating and implementing key systems to automate operational processes and enhance client and agent experiences. Her expertise in supporting the development and launch of new annuity products is a valuable asset to the team.

Another important member of the management team is Fredric Wing, who has worked at senior levels with insurance and financial services companies across Canada. Wing was appointed as the chief operating officer of Connect Financial and the CEO of Sentinel after the acquisition. His experience and expertise in the industry are invaluable to the management team.

The A-CAP management team's diverse skills and knowledge in the insurance and investment sectors, coupled with their comprehensive service offerings, position them well to effectively manage and grow their portfolio of insurance and financial businesses.

Frequently asked questions