Ia Financial Corporation Inc. · TSX:IAG
Ia Financial — Investor Presentation (June 2025)
54 slides from Ia Financial's investor presentation, June 2025
Slide 1: iA Financial Group Corporate presentation
iA Financial Group Corporate presentation June 2025
Slide 2: Table of contents
Table of contents Business overview Profitability and business growth Capital position and deployment 4 iA Financial Group overview 17 Earnings power 27 Financial strength 5 The iA way 18 EPS Growth momentum 28 Capital priorities 6 Business mix 19 Return on equity 29 Key acquisition criteria 7 Distr
Slide 3: Business overview
Business overview 3
Slide 4: The Group today
iA Financial Group is one of the largest The Group today insurance and wealth management groups in Canada, with operations in the United States. 5.4 million + Founded in 1892 as a mutual company, iA became a CLIENTS share capital company in 2000 and is listed on the Toronto Stock Exchange under the
Slide 5: The iA way
The iA way • Focus on target markets where iA can be a leader ◦ Canada: Outpacing the market, the iA way ◦ US: Accelerating growth in a high-potential market • Distinctive strength in building and managing lasting Target distribution relationships Distribution markets • Ensuring clients’ peace of mi
Slide 6: Creating value in our unique way
Creating value in our unique way Synergies Geographical High ROE businesses Individual Expansion delivering synergies and Group businesses insurance and High-growth-potential competitive advantages distribution (US) businesses in which iA seeks to become a leader Property Dealer & Casualty Services
Slide 7: Unparalleled Distribution Reach
Unparalleled Distribution Reach • Group benefits and retirement brokers A full range of distribution • Actuarial consulting firms channels, depending on • Aggregators • Independent marketing types of products and • Distribution partners Individual Group insurance and organizations (26,600 agents) ta
Slide 8: Q1/2025 at a glance and key results
Q1/2025 – AT A GLANCE Q1/2025 – KEY RESULTS Continued strong sales1 19% YoY growth, meeting $2.91 Core EPS†† Highlights: medium-term target2 • Individual insurance, Canada: +11% YoY • Dealer services, Canada: +10% YoY $1.98 EPS • Wealth Management: Record net sales of seg. funds: $1.2B Progressing w
Slide 9: Delivering sustained shareholder growth in our unique way
Delivering sustained shareholder growth in our unique way FOCUSED VALUE FOR FINANCIAL ON GROWTH SHAREHOLDERS STRENGTH SUSTAINABLE UPWARD EARNINGS INDUSTRY LEADING VALUE CREATION ROBUST CAPITAL POSITION TRAJECTORY • 12% share price CAGR since IPO or 15% • Solvency ratio of 132%, well above †† • Targe
Slide 10: Shareholder value creation
Shareholder value creation Industry leading share price and book value growth since IPO Reflecting sound management approach and long-term vision $136.66 March 31, 2025 IAG Share Price Historical CAGR: 12% $74.62 March 31, 2025 IFRS 17 & IFRS 9 transition Book value maintained at transition $8.44 $7
Slide 11: Track record
Track record 11
Slide 12: Leading in shareholder returns for 25 years
Leading in shareholder returns for 25 years Total shareholder returns (Share price growth with dividend reinvested, at year-end, IAG Compound annual growth rate in total illustrating the value of an initial $100 investment) $3,222 shareholder returns Ranking iA Peers Best performance among Canadian
Slide 13: Consistently superior book value growth
Consistently superior book value growth Book value per common share Compound annual growth rate in book and dividends paid value per share and dividends paid (at March 31, 2025) IAG 722% Ranking iA Peers Best performance among Canadian lifecos 5 #1 9% 6% years Peers 416% 10 #1 9% 7% years Since #1 1
Slide 14: Price-to-book ratio
Price-to-book ratio Volatility in the context of the IFRS 17 Trading at a 2.00x1 → 4% premium vs peers2, and IFRS 9 transition well below 10-year average discount of 15% 4% premium % June 30, Premium 2025 (discount) vs peers2 IAG 2015-2024 - 10-year average Premium (discount) = (15%) Price-to-book =
Slide 15: High quality earnings
High quality earnings Last 10 years core earnings† reconciliation to net income1 100% 96% 91% -2% -1% -1% -5% Core earnings† aims to Expectation is for these items to be near-neutral in the long term measure the operating performance and earnings potential of the business over the medium and long te
Slide 16: Profitability and business growth
Profitability and business growth 16
Slide 17: Core EPS growth outperformance
Core EPS growth outperformance EPS ($) 11.16 Core EPS1,†† ($) EPS and Core EPS†† 12% 9.77 CAGR Last 10 years Outperforming our 10%+ annual average growth target2 4.04 3.57 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 For all footnotes on this slide, refer to slide 51 for more details. 17 †† Thi
Slide 18: EPS growth momentum
EPS growth momentum Organic growth A clear path to reach core EPS†† target1 initiatives 6% • Organic Distribution: Increase sales by broadening distribution reach Organic growth Solid recurring earnings • Insurance, Canada & Wealth from profit on in-force Management: Strong sales and business divers
Slide 19: Continuously expanding core ROE
Continuously expanding core ROE Consistently increasing core ROE†† target 2027 17%+4 Core ROE1,2,†† 16.1% 1,3 ROE 2023-2024 15%+ mid-term 13.0% 2022 13% to 15% 11.5% 2021 12.5% to 14% 10.2% 2020 11.5% to 13% 2015-2019 11% to 12.5% 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Q1/2025 For all foo
Slide 20: A track record of sustained growth, fuelled by sales momentum
A track record of sustained growth, fuelled by ongoing sales momentum Net Premiums, Premium Assets Under Management & Equivalents & Deposits Administration ($M) ($B) 20,424 259.4 11% 9% 189.5 10-year 11,362 10-year CAGR CAGR 109.5 7,481 2014 2019 2024 2014 2019 2024 20
Slide 21: Financial targets
Financial targets1 Ready for more growth 10%+ 17%+ Core EPS†† growth Core ROE†† medium-term (2027) annual average $650M+ 25% to 35% Organic capital Core dividend payout generation ratio††,2 (2025) For all footnotes on this slide, refer to slide 52 for more details. †† This item is a non-IFRS ratio;
Slide 22: Unique, diversified business mix
Synergies Geographical Expansion Unique, diversified business mix Foundation 22
Slide 23: Foundation
FOUNDATION STRONG SALES MOMENTUM Individual Insurance 369 392 Sales ($M) Individual Insurance and retail distribution +6% • Canadian leader for number of policies sold1 YoY Long-established • Diversified, distinctive and broad distribution network • Proximity with advisors providing direct access to
Slide 24: Synergies
SYNERGIES STRONG SALES MOMENTUM 2,048 Group Insurance 1,882 Group Insurance P&D1 ($M) • Targeting employee plans for mid-size groups and special +9% markets – leveraging our agility and synergies YoY • Superior experience for plan sponsors and clients High ROE through proximity, dedication and enric
Slide 25: Geographical expansion
GEOGRAPHICAL US Individual Insurance Sales (US$M) 227 EXPANSION MAIN ACQUISITIONS1 2010 – American-Amicable 2024 – Vericity 2024 – Prosperity (Insurance Blocks) High-growth- • Robust infrastructure and processes potential businesses to meet the scale of future growth 15 in which iA seeks to • Availa
Slide 26: Capital position and deployment
Capital position and deployment 26
Slide 27: Robust capital position
Robust capital position Strong and ongoing $635M $650M+ organic capital Strong foundation for growth generation High Flexible High solvency balance capital to ratio sheet deploy $125M • 132% • 14.8% financial • $1.4B of capital Q1/25 leverage ratio†† available for $30M • Well above regulatory • Fina
Slide 28: Deploying available capital soundly
Deploying available capital soundly Investing actively in high-ROE business and digital evolution Capital available for deployment $1.4B As at March 31, 2025 Capital allocation priorities Creating Value Returning Value #1 Organic growth #2 Disciplined #3 Dividends #4 NCIB • ROE expansion driven by a
Slide 29: Disciplined M&A strategy
Disciplined M&A strategy Key Acquisition Criteria Pursuing strong growth • Fit with iA strategic vision and culture while ensuring financial • Path to core EPS†† and ROE accretion flexibility and stability • Value creation opportunities using iA strengths and know-how and leveraging synergies • Stre
Slide 30: We empower growth through technology
We empower growth through Keep the pace and invest up to technology $400M/year Continuing to invest in our digital evolution to deliver solid business growth Modernizing Optimizing Investing in Ax our business and Cx to enhance the use of end-to-end digital platforms data and AI experience 30
Slide 31: Dividend to common shareholders
Dividend of 90¢ per Dividend to common shareholders common share payable in Q2/2025 $0.90 $0.80 $0.70 $0.60 Steady increases every 3 quarters $0.50 $0.40 Largest dividend increase (+29%) among Canadian lifecos $0.30 following the lifting of regulatory restrictions in November 2021 $0.20 First lifeco
Slide 32: Appendices
Appendices 32
Slide 33: Business segments
Business segments Wealth Management Insurance, Canada US Operations THREE OPERATING – Individual Wealth – Individual Insurance – Individual Insurance BUSINESS SEGMENTS – Management Group Savings and – – Group Insurance Dealer Services – Dealer Services Retirement – iA Auto and Home – Retail distribu
Slide 34: Drivers of earnings geography by segment
Drivers of earnings (DOE) geography by segment Insurance, Canada Wealth Management US Operations Investment Corporate GMM1 GMM1 GMM1 • Individual Insurance, Canada (non-participating products) • Individual and group annuities • Individual Insurance, • Group Insurance: Employee Plans (insurance contr
Slide 35: 2024 sales - continued strong growth momentum
2024 sales - continued strong growth momentum SALES ($M, unless otherwise indicated) 2024 2023 Variation HIGHLIGHTS INSURANCE, CANADA ▪ Solid 2024 sales for Individual Insurance in Canada reflecting the strength of all our Individual Insurance 392 369 6% distribution networks, the excellent Group In
Slide 36: Q1/2025 sales - strong growth momentum
Q1/2025 sales - strong growth momentum SALES ($M, unless otherwise indicated) Q1/25 Q1/24 Variation INSURANCE, CANADA Individual Insurance 99 89 11% Group Insurance 178 136 31% Dealer Services 163 148 10% iA Auto & Home 129 114 13% WEALTH MANAGEMENT Individual Wealth Management Segregated funds – gr
Slide 37: Canada: Outpacing the market, the iA way
Canada Outpacing the market, the iA way Individual Segregated Insurance funds #1 #1 237,529 policies1 Gross and net sales2 Wealth Dealer Services #1 Top 2 Non-bank dealer Total sales3 (AUM/AUA)3 37 For all footnotes on this slide, refer to slide 53 for more details
Slide 38: U.S.: Geographical expansion in a high-potential market
U.S. Geographical expansion in a • Significant growth opportunities, given the fragmented nature of high-potential U.S. target markets market • Leveraging iA’s skills and expertise, including risk management and operational efficiency Life insurance Dealer Services Top 3 Top 8 Final expense sales ~5
Slide 39: Investment portfolio
Investment portfolio Resilient portfolio composed of high- Elevating portfolio ROE quality assets and diversified exposures with Total Portfolio Bonds - Corporates - Management (TPM) BB and lower: 0.5% Pre-2022: Asset allocation with global Investment properties: 3% considerations Bonds - Corporates
Slide 40: $32.2B Bond portfolio
$32.2B Bond portfolio High-quality and conservative portfolio Distribution by industry sector Distribution by category of issuer (Corporate bonds) BOND PORTFOLIO IS 70.5% OF TOTAL PORTFOLIO Financial services 20.9% Governments 26.1% • 70.5% are corporate bonds and 29.5% are government & Utilities 25
Slide 41: High-quality investment properties & mortgages portfolios
High-quality investment properties & mortgages portfolios $1.5B INVESTMENT PROPERTIES Combined portfolios $1.2B MORTGAGES ▪ Capital-efficient investment properties ▪ Disciplined underwriting process ▪ Average lease terms remaining of ~9 years1 ▪ Large portion rented to governments ▪ 63% of mortgages
Slide 42: Excellence recognition in strategic execution
#1 Number of individual insurance policies issued in Canada1 #1 Gross and net sales of segregated funds in Canada2 Excellence #1 Wealth distribution (non-bank assets including seg funds)3 recognition in #1 Distinction Awards - Mental Health and Wellness Large Service Companies category - 2022-20234
Slide 43: Our sustainable journey
Our sustainable journey – 1st Sustainability Bond Framework – 1st Sustainability Bond Issuance – Publication of our climate performance and our ambition to be, in the future, among the best in our industry in climate – 1st Sustainable Development Policy change in North America – 1st Artificial Intel
Slide 44: 2024 Sustainability highlights
2024 Sustainability highlights Aim to deliver a non- Enhanced governance 9.23% 24% Promoting a culture conducive to a learning financial performance that ensures structure with the On Forbes’ list of organizational Sustainability Executive Reduction2 in the carbon Reduction1 in the carbon Canada’s B
Slide 45: Credit ratings
Credit ratings The company and its subsidiaries receive credit ratings from three independent rating agencies: Standard & Poor’s, DBRS and A.M. Best. These ratings, presented in the table below, confirm the financial strength of the company and its subsidiaries and their ability to meet their commit
Slide 46: Glossary
Glossary Acronym Term Additional information ACL Allowance for credit losses Amount defined by IFRS 9 that adjusts the carrying amount of an asset for estimated future credit losses. AMF Autorité des marchés financiers Body mandated by the Government of Quebec to regulate Quebec insurers, including
Slide 47: Glossary (cont.)
Glossary (cont.) Acronym Term Additional information IFRS International Financial Reporting Standards Set of accounting standards mandatory for Canadian publicly-owned companies. MD&A Management’s Discussion and Analysis - NCIB Normal course issuer bid - NFI Non-fixed income Asset class notably incl
Slide 48: Forward-looking statements
Forward-looking statements This document may contain statements that are predictive or otherwise forward-looking in nature, that depend upon or refer to future events or conditions, or that include words such as “may”, “will”, “could”, “should”, “would”, “suspect”, “expect”, “anticipate”, “intend”,
Slide 49: Non-IFRS and Additional Financial Measures
Non-IFRS and Additional Financial Measures iA Financial Corporation reports its financial results and statements in accordance with IFRS® Accounting Standards (referred to as “IFRS” in this document). The Company also publishes certain financial measures or ratios that are not presented in accordanc
Slide 50: Investor Relations
Investor Relations Contact Caroline Drouin Tel.: 418-684-5000, ext. 103281 VP-Investor-Relations@ia.ca Next Reporting Dates Q2/2025 - August 5, 2025 after market close Conference call on August 6, 2025 Q3/2025 - November 4, 2025 after market close Conference call on November 5, 2025 Q4/2025 - Februa
Slide 51: Footnotes
Footnotes Slide 8 1 Sales, net premiums, premium equivalents and deposits, organic capital generation and capital available for deployment are supplementary financial measures. Refer to the “Non-IFRS and Additional Financial Measures” section of this document and of the Q1/25 MD&A for more informati
Slide 52: Footnotes (cont.)
Footnotes (cont.) Slide 18 1 Within the meaning of applicable securities laws, such market guidance constitutes “financial outlook” and “forward-looking information”. The purpose of this financial guidance is to provide a description of management’s expectations regarding iA Financial Group’s annual
Slide 53: Footnotes (cont.)
Footnotes (cont.) Slide 25 1 American-Amicable concluded on July 20, 2010, DAC acquisition concluded on Jan. 18, 2018, IAS acquisition concluded on May 22, 2020, Vericity acquisition concluded on June 28, 2024 and Prosperity on August 7, 2024. Slide 27 1 Within the meaning of applicable securities l
Slide 54: iA Financial Group is a business name and trademark of iA Financial Corporation Inc.
iA Financial Group is a business name and trademark of iA Financial Corporation Inc. 54
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