iA Financial Group Reports Third Quarter Results
Good profitability and robust capital position, supported by strong organic capital generation
The results presented below are for iA Financial Corporation Inc. (“iA Financial Corporation” or the “Company”), the holding company that owns 100% of the common shares of Industrial Alliance Insurance and Financial Services Inc. (“iA Insurance”). The results for iA Insurance are presented in a separate section on page 7 of this document.
This news release presents non-IFRS measures used by the Company when evaluating its results and measuring its performance. These non-IFRS measures are not standardized financial measures and are not included in the financial statements. For relevant information about non-IFRS measures used in this document, see the “Non-IFRS and Additional Financial Measures” section in the Management’s Discussion and Analysis for the period ending September 30, 2022, which is hereby incorporated by reference, and is available for review at sedar.com or on iA Financial Group’s website at ia.ca.
THIRD QUARTER HIGHLIGHTS – iA Financial Corporation
- Reported EPS of $2.03, and core EPS† of $2.29, which is up 3% YoY and compares to guidance of $2.30 to $2.45
- Reported ROE†,1 of 12.2%, and core ROE1,† of 13.8%, near the middle of guidance (13% to 15%)
- Robust solvency ratio† of 130% at September 30, 2022 and strong organic capital generation† of ~$160 million
- Strong Individual Insurance sales growth and positive net sales in Individual Wealth Management
- Book value per common share2 of $62.38 at September 30, 2022, up 2% during Q3 and compared to $60.82 a year earlier
- Maintaining a near-neutral to favourable outlook for IFRS 9 and IFRS 17 transition
For the third quarter ended September 30, 2022, iA Financial Corporation (TSX: IAG) reports net income attributed to common shareholders of $215 million, diluted earnings per common share (EPS) of $2.03 and return on common shareholders’ equity (ROE) for the trailing twelve months of 12.2%. Core EPS† of $2.29 compares with guidance of $2.30 to $2.45 for the quarter and core ROE† of 13.8% for the trailing twelve months is near the middle of guidance. The solvency ratio stands strong at 130% at September 30, 2022.
“Our third quarter results demonstrate the robustness of our business model. Our high performing distribution networks, supported by the quality of our products and digital tools, delivered strong growth in Individual Insurance sales and positive retail net fund inflows," commented Denis Ricard, President and CEO of iA Financial Group. “With core EPS for the quarter and year to date higher than 2021, which was a record year, we continue to invest in our future growth notably through our digital transformation which will continue to be key to our growth success.”
“Despite a challenging environment for our wealth management businesses, we experienced good profitability in the third quarter, with core ROE1 around mid-target and core EPS nearly at guidance level. In addition, we have further strengthened the Company’s financial position through sustained organic capital generation, as well as the conclusion of a favourable reinsurance agreement in the U.S.,” added Jacques Potvin, Executive Vice-President, CFO and Chief Actuary. “Finally, while the annual review of our actuarial assumptions will be finalized in the coming weeks, at this time we expect the impact to be near-neutral on fourth quarter results.”