Ia Financial Corporation Inc. · TSX:IAG
Ia Financial — Industrial Alliance Insurance and Financial Services — Non-Deal Roadshow (November 2014)
18 slides from Ia Financial's roadshow presentation, November 2014
Slide 1: 2014 Nine-Month Review
2014 Nine-Month Review Yvon Charest President and CEO René Chabot Executive Vice-President and Chief Actuary November 2014 1
Slide 2: Nine-month Review
Nine-month Review Two dividend increases in 2014 (+14% in total) YTD EPS $2 $2.86 86 Sh ld d Should deliver li att ttop off 2014 guidance id [$3 [$3.40–$3.80] 40 $3 80] Solvency ratio Steady at 215% despite ~60 bps drop in interest rates YTD 2014 Balance sheet Strong with financial flexibility to fu
Slide 3: On Track to Achieve Guidance for 2014
On Track to Achieve Guidance for 2014 Earnings should finish at top of range if Q4 guidance is met 2014 Guidance After 9 Months $3.40 EPS of $2.86 EPS to $3.80 Q4 guidance is $0.90-$1.00 EPS Strain at 26% Strain 25% 2014 guidance assumes attaining Q4 sales projections 11.0% ROE of 12.1% (t
Slide 4: Strong Balance Sheet
Strong Balance Sheet Financial flexibility to fund acquisitions Solvency Ratio Debt Ratio (%, end of period) (Deb. and pref. shares/Capital, end of period) 35 9% 35.9% 217 217 215 200% Target 175% 25.8% 25.9% 2012 2013 Q3/14 2012 2013 Q3/14 4
Slide 5: Individual Insurance
Individual Insurance Improved balance between top and bottom lines ($Million, unless 2014 (9M) 2013 2012 2011 otherwise indicated) Top Line Sales (target prem.) 177.1 234.3 243.3 209.4 Premiums 1 112 8 1,112.8 1 425 2 1,425.2 1 339 3 1,339.3 1 248 2 1,248.2 Market Share1 9.7%2 11.5% 12.0% 10.6% B tt
Slide 6: Individual Insurance 2014 Year to Date
Individual Insurance Focus now on top-line top line initiatives while maintaining strain guidance Sales1 (in $M) $ 243 2014 Year to Date 234 209 Brokers rebuilding pipeline for 187 10/8 replacement product 163 Rates decreased on other 147 14 147 products to revitalize sales Sales growing in US
Slide 7: Wealth Management Assets Growing at Healthy Pace
Wealth Management Assets Growing at Healthy Pace Highlight of 2014 is turnaround in seg fund sales NET SALES 2014 2013 2012 2011 2010 2009 2008 ($Million) (9M) Segregated funds 200 (89) 309 769 925 476 323 GMWB popularity Mutual funds 276 999 460 502 668 214 223 (excluding LBC) Total net fund sales
Slide 8: Segregated Funds
Segregated Funds Assets of $11 7B at September 30 $11.7B 30, 2014 (retail only) Gross Sales Net Sales (in $B) $ (in $M) $ 2014 Year to Date 1.1 1.0 1.0 Positive net sales of $200M, while industry is negative New cross-Canada distribution 309 strategy t t gaining i i ttraction ti New income-for
Slide 9: Mutual Funds
Mutual Funds Assets of $12.0B $12 0B at September 30 30, 2014 Gross Sales Net Sales (in $B) $ (in $M) $ 2014 Year to Date 2.3 674 2013 was outstanding year 3 new funds launched in Q2 to 1.7 address gaps in product line 456 1.5 Focused on increasing contribution from IA affiliates : • 22% of g
Slide 10: Growth of Other Capital-light Businesses Continues
Growth of Other Capital-light Businesses Continues In first nine months of 2014 (% YoY) Dealer Services • P&C sales up 9% 9%, Creditor -1% 1% Individual • Sales up 18% Disability Life (US) • Sales up 26% (CAD$) Employee Plans • Initiatives in place to redress profitability Special Markets • Sales up
Slide 11: Year-end Assumption Review
Year-end Assumption Review New actuarial standards for economic assumptions will be positive Plan No change to plan presented at 2014 Investor Day URR reserve release will be used: New actuarial • To position IRR at 3.75% standards • To improve position against stock market decline • To strengthen l
Slide 12: IA Building Long-term Shareholder Value
IA Building Long-term Shareholder Value Book Value Per Share (end of period) $33.00 CAGR $9.36 1-year +12% 5-year +8% Since IPO +10% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Q3/14 12
Slide 13: Capacity to Absorb Market Downturns
Capacity to Absorb Market Downturns Stock Market Sensitivities At At At S t 30 Sept. 30, J June 30 30, S t 30 Sept. 30, 2014 2014 2013 ► Stocks Level of S&P/TSX before matching g provisions require p q 11,100 , points p 10,600 , points p 10,800 , points p long-term strengthening for future policy (-
Slide 14: Sensitivity to Long-term Interest Rates
Sensitivity to Long-term Interest Rates Interest Rates Sensitivities At At At Sept. 30, June 30, Sept. 30, 2014 2014 2013 Impact on net income of a ► IRR 10 bps decrease in IRR ($25 million) ($21 million) ($16 million) Impact on net income of a ► URR 10 bps decrease in URR ($66 million) ($63 million
Slide 15: Investor Relations
Investor Relations Contact Grace Pollock Tel. 418-780-5945 grace.pollock@inalco.com Reporting Dates Q4/14 – February 12, 2015 Q1/15 – May 7, 2015 Q2/15 – July 30, 30 2015 Q3/15 – November 4, 2015 Q4/15 – February 11, 2016 For information on our earnings releases, conference calls and related disclos
Slide 16: Non-IFRS Financial Information
Non-IFRS Financial Information Industrial Alliance Insurance and Financial Services Inc. reports its financial results in accordance with International Financial Reporting Standards (IFRS). It also publishes certain non-IFRS financial measures that do not have an IFRS equivalent, including sales, va
Slide 17: Forward-Looking Statements
Forward-Looking Statements This document may contain statements relating to strategies used by Industrial Alliance or statements that are predictive in nature, that depend upon or refer to future events or conditions, or that include words such as “may”, “could”, “should”, “ o ld” “suspect”, “would”
Slide 18: Industrial Alliance Insurance and Financial Services Inc.
at] INDUSTRIAL ALLIANCE INSURANCE AND FINANCIAL SERVICES INC.
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