iA Financial reports "solid" results
iA Financial reports “solid” results | Insurance Business Canada
Insurance News
iA Financial reports “solid” results
CFO points to favourable insurance experience for a third straight quarter
Insurance News
By
Terry Gangcuangco
“Second quarter results were solid in every respect.”
Those were the words of iA Financial Group president and chief executive Denis Ricard when the iA Insurance owner released its earnings report for the second quarter of 2024.
According to the insurance and wealth management group, here’s how it fared in the period:
Metric
Q2 2024
Q2 2023
Net income attributed to common shareholders
$206 million
$196 million
Core earnings – insurance, Canada
$106 million
$91 million
Core earnings – wealth management
$98 million
$76 million
Core earnings – US operations
$22 million
$26 million
Core earnings – group
$267 million
$247 million
When the financial results were announced, Ricard highlighted: “Core EPS (diluted earnings per common share) of $2.75 is at a record level, and business growth was strong across all sectors, contributing to a 15% increase in premiums and deposits. Sales of individual insurance and segregated funds in Canada, as well as record sales in US insurance, were also noteworthy.
“Along with strong organic growth, we recently completed acquisitions in two high-growth sectors: our US insurance operations and our wealth management distribution business in Canada, reflecting our disciplined execution of our strategy.”
In Canada, factors that contributed to the numbers included the favourable mortality experience in individual and group insurance, lower auto and home protection claims, and the positive impact of premium increases implemented in 2023. For the US, the group cited higher sales and more onerous contracts.
Éric Jobin, chief financial officer and chief actuary, commented: “Profitability was strong in the second quarter with a 15% increase in core EPS. In addition to continued sales momentum, this performance was notably driven by favourable insurance experience for a third consecutive quarter.”
iA Financial recently completed its swoop for two existing blocks of business from Prosperity Life Group and also announced a quarterly dividend of $0.8200 per outstanding common share payable on September 16.
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