iA Financial Group Reports Third Quarter Results
Focused growth strategy driving strong sales results, robust capital position and 10% year-over-year increase in core EPS
Quebec,
News Release
THIRD QUARTER HIGHLIGHTS – iA Financial Corporation
- Core EPS of $2.50, up 10% compared to Q3 2022 result, and trailing-12-month core ROE of 14.8%, close to medium-term target
- Reported EPS of $0.54 compared to $0.01 in Q3 2022 and trailing-12-month ROE of 10.6%
- Strong business growth, including record sales in U.S. Individual Insurance, leading to a solid 17% YoY increase in premiums and deposits
- Robust solvency ratio of 145%, with organic capital generation of $165M and $1.6B of deployable capital at September 30, 2023
- Book value per common share reaching $65.25 at September 30, 2023, up 4% in the first nine months of 2023
- Acquisition of Vericity to further grow in the U.S. life insurance market and diversify distribution with a digital agency
For the third quarter ended September 30, 2023, iA Financial Corporation (TSX: IAG) recorded core diluted earnings per common share (EPS) of $2.50, 10% higher than the 2022 third quarter result. Core return on common shareholders’ equity (ROE) for the trailing twelve months was 14.8%, close to the Company’s medium-term target of 15%+. On a reported basis, which includes the impact of volatile items (primarily short-term macroeconomic variations), quarterly net income attributed to common shareholders was $55 million, EPS was $0.54 and ROE for the trailing twelve months was 10.6%. The solvency ratio of 145% at September 30, 2023 is well above the Company’s operating target of 120%.
“Business growth momentum in the third quarter was driven by our ability to generate new business and maintain lasting relationships with our clients, resulting in a strong 17% increase in premiums and deposits. We also achieved good profitability in most of our business units, leading to a core EPS increase in line with our medium-term target,” commented Denis Ricard, President and CEO of iA Financial Group. “Particularly noteworthy were the very good results of our U.S. Individual Insurance division, a solid growth story that testifies to the potential of this market as we continue to expand in the U.S.”
“Good core profitability in Q3 is largely attributable to strong results in the core insurance and non-insurance businesses, both of which increased by 10% year-on-year, supported by favourable disability results and lower mortality claims," added Éric Jobin, Executive Vice-President, CFO and Chief Actuary. “Our financial position remains strong and flexible, with organic capital generation† of $165 million during the quarter. We are on track to achieve our full-year target of over $600 million to fuel organic growth, digital transformation and future acquisitions.”