Slide 1: First Quarter 2025 Conference Call
First Quarter 2025 Conference Call Presenters: Denis Ricard, President and CEO Éric Jobin, EVP, CFO and Chief Actuary May 8, 2025
Slide 2: 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 3: Non-IFRS and Additional Financial Measures
Non-IFRS and Additional Financial Measures iA Financial Corporation (hereinafter referred to as the “Company”) 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
Slide 4: Table of Contents
TABLE OF CONTENTS 2 Forward-looking statements APPENDICES 3 Non-IFRS and add. measures 25 Book value 36 Insurance, Canada 8 Q1/2025 financial targets 26 Dividend 37 Insurance, Canada (cont.) 9 Sales - Insurance, Canada 27 Operational efficiency initiatives 38 Wealth Management 10 Sales - Wealth Mana
Slide 5: Agenda
AGENDA ▪ Key results Denis Ricard ▪ Business growth President and CEO ▪ Financial targets ▪ Profitability Éric Jobin ▪ Financial strength EVP, CFO and Chief Actuary ▪ Questions & Answers 5
Slide 6: Denis Ricard
Denis Ricard President and CEO 6
Slide 7: Present on the call
PRESENT ON THE CALL Denis Ricard Éric Jobin President and CEO EVP, Chief Financial Officer and Chief Actuary Alain Bergeron Stephan Bourbonnais EVP, Chief Investment Officer EVP, Wealth Management Renée Laflamme Pierre Miron EVP, Individual Insurance, EVP, Chief Growth Officer Savings and Retirement
Slide 8: Q1/2025 – Profitable Growth Key Results
Q1/2025 – PROFITABLE GROWTH KEY RESULTS ROE expansion $2.91 Core EPS†† 19% YoY growth, meeting medium-term target1 Q1 trailing-12-month core ROE†† of 16.1% Q1 trailing-12-month ROE of 13.0% 17%+ Core ROE†† $1.98 EPS Q1 annualized core ROE†† of 15.8% target for 20271 Q1 annualized ROE of 10.8% Progre
Slide 9: Insurance, Canada - Business Growth
Insurance, Canada - Business Growth Q1/2025 HIGHLIGHTS Individual Insurance INDIVIDUAL INSURANCE GROUP INSURANCE • Solid performance reflecting the strength of all our (sales1 in $M) Employee Plans and Special Markets distribution networks, the excellent performance (premiums and deposits1,2 in $M)
Slide 10: Wealth Management - Business Growth
Wealth Management - Business Growth Q1/2025 HIGHLIGHTS INDIVIDUAL INDIVIDUAL SEGREGATED FUNDS MUTUAL FUNDS Individual Wealth (gross sales in $M) (gross sales in $M) • Record quarterly sales for both gross and net sales of segregated funds, reflecting the 647 strength of our distribution networks and
Slide 11: US Operations - Business Growth
US OPERATIONS - Business Growth Q1/2025 HIGHLIGHTS Individual Insurance INDIVIDUAL INSURANCE DEALER SERVICES • Solid result driven by good growth in the final (sales in US$M) (sales in US$M) expense, middle/family and government/ worksite markets and the addition of sales from the Vericity acquisiti
Slide 12: Financial targets
Financial targets1 10%+ 17%+ $650M+ 25% to 35% annual average Core ROE†† Organic capital of core earnings Core EPS†† growth (2027) generation Dividend payout (medium-term) (2025) ratio††, 2 19% 16.1% $125M 30.9% Core EPS†† Core ROE†† Organic capital Core dividend Q1/2025 YoY growth Trailing 12-month
Slide 13: 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 14: Éric Jobin
Éric Jobin EVP, Chief Financial Officer and Chief Actuary 14
Slide 15: Q1/2025 Profitability and Financial Strength
Q1/2025 PROFITABILITY AND HIGHLIGHTS FINANCIAL STRENGTH ROE expansion • Q1 trailing-12-month core ROE†† of 16.1% Q1/2025 Q1/2024 YoY • Q1 trailing-12-month ROE of 13.0% • Q1 annualized core ROE†† of 15.8% • Q1 annualized ROE of 10.8% Profitability Core EPS†† (diluted) $2.91 $2.44 +19% Strong increas
Slide 16: Q1/2025 Earnings Performance
Q1/2025 EARNINGS PERFORMANCE Net income1 Core earnings† Good growth in all ($M) three operating (20%) +12% segments, both on 273 reported and core 243 233 basis 100 186 83 92 Insurance, 12% total core earnings† Canada 87 growth 106 88 Wealth 95 Management 12 Net income impacted 95 30 US Operations 1
Slide 17: Q1/2025 Earnings per Segment: Insurance, Canada
Q1/2025 EARNINGS INSURANCE, CANADA PER SEGMENT Q1/25 Q1/24 YoY Core earnings† Core earnings† $100M $92M 9% ($M) 273 • Higher expected insurance earnings driven by: ◦ Higher combined RA release1 and CSM recognized for services provided1 ◦ Higher expected earnings on PAA1 business from iA Auto and Hom
Slide 18: Q1/2025 Earnings per Segment: Wealth Management
Q1/2025 EARNINGS WEALTH MANAGEMENT PER SEGMENT Q1/25 Q1/24 YoY Core earnings† Core earnings† $106M $95M 12% ($M) 273 • Increase in the combined RA release and CSM recognized for services provided from: ◦ Favourable impact of strong segregated fund net sales Insurance, 100 ◦ Favourable impact of fina
Slide 19: Q1/2025 Earnings per Segment: US Operations
Q1/2025 EARNINGS US OPERATIONS PER SEGMENT Q1/25 Q1/24 YoY Core earnings† Core earnings† $30M $19M 58% ($M) 273 • Strong core insurance service result1 increase of $19M2, which includes the contributions of the Prosperity blocks of business and $8M2 from Vericity • Core non-insurance activities incr
Slide 20: Q1/2025 Earnings per Segment: Investment
Q1/2025 EARNINGS INVESTMENT PER SEGMENT Q1/25 Q1/24 YoY † Core earnings† $85M $86M (1%) Core earnings ($M) Prior to taxes, financing charges and expenses, core net 273 investment result1 of $124M was up from $109M a year ago and $120M the previous quarter • Strong outcome bolstered by the favourable
Slide 21: Q1/2025 Earnings per Segment: Corporate
Q1/2025 EARNINGS CORPORATE PER SEGMENT Q1/25 Q1/24 YoY Core earnings† Core earnings† ($48M) ($49M) (2%) ($M) 273 • After-tax expenses slightly lower than last year • Core other expenses of $65M (before taxes) ◦ In line with 2025 quarterly expectation of $68M ± $5M1 Insurance, 100 • Ongoing strong em
Slide 22: Robust Capital Position
ROBUST CAPITAL POSITION Supported by ongoing organic capital generation Capital available Solvency ratio1,2 Q1/2025 MOVEMENTS Solvency ratio1 for deployment 3 (end of period) Beginning of quarter 139% $0.7B 145% Core earnings† net of dividends 2.5% $189M 139% 132% Organic CSM4 growth (excl. seg fund
Slide 23: Question & Answer Session
Question & Answer Session Financial Group
Slide 24: Appendices
Appendices Financial Group
Slide 25: Book Value per Share
$74.62 1 BOOK VALUE PER SHARE at March 31, 2025 P/BV ratio of 1.83 at March 31, 2025 CAGR 1-year +8% 5-year +7% 10-year +8% Since 2000 +9% March 31, 20002 $8.44 IPO 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2.17 2.22
Slide 26: Dividend to common shareholders
Dividend to common shareholders Dividend of 90¢ per 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 $0.30 (+29%) among Canadian lifecos following the lifting of regulatory restrictions in $0.20 November 2021 First lifeco
Slide 27: Operational Efficiency Initiatives
OPERATIONAL EFFICIENCY INITIATIVES Q1/2025 corporate expenses on target 1 Corporate segment - Core other expenses target:2 2022+ 2025 quarterly run rate of $68M ± $5M pre-tax In-depth top-down review of projects 2023-2024 First quarter of 2025 core other expenses of $65M compares favourably with qua
Slide 28: Core Reconciliation
1 Q1/2025 RECONCILIATION OF EARNINGS ACCORDING TO THE DOE Insurance, Wealth ($M, unless otherwise indicated) US Operations Investment Corporate TOTAL Canada Management YoY Expected insurance earnings 141 98 54 — — 293 17% Impact of new insurance business (8) — (1) — — (9) DRIVERS OF EARNINGS + Core
Slide 29: Q1/2025 Drivers of Earnings
Q1/2025 DRIVERS OF EARNINGS First quarter ($M, unless otherwise indicated) 2025 2024 YoY CORE EARNINGS† ACCORDING TO THE DRIVERS OF EARNINGS1 - CONSOLIDATED Core insurance service result Risk adjustment release 73 66 11% CSM recognized for services provided 195 164 19% + Expected earnings on PAA ins
Slide 30: Market-Related Impacts
MARKET-RELATED IMPACTS METHODOLOGY1 Quarterly non-core market-related impacts are the difference between: Reported net investment result, which is the actual IFRS result, and Core net investment result, which is based on management expectations MANAGEMENT EXPECTATIONS FOR CORE NET INVESTMENT RESULT
Slide 31: Investment Portfolio
INVESTMENT PORTFOLIO Resilient portfolio composed of high-quality assets and diversified exposures Bonds - Corporates - BB and lower: 0.5% Investment properties: 3% Fixed income ALM1-oriented portfolio Mortgages - Insured: 2% ▪ see further details on slide 32 Bonds - Corporates - Mortgages - Uninsur
Slide 32: $32.2B Bond Portfolio
$32.2B BOND PORTFOLIO High-quality and conservative portfolio Distribution by category of issuer Distribution by industry sector (Corporate bonds) Financial services 20.9% BOND PORTFOLIO IS 70.5% OF TOTAL PORTFOLIO Governments 26.1% Utilities 25.1% • 70.5% are corporate bonds and 29.5% are governmen
Slide 33: High-Quality Investment Properties & Mortgages Portfolios
HIGH-QUALITY INVESTMENT PROPERTIES & MORTGAGES PORTFOLIOS $1.5B INVESTMENT PROPERTIES $1.2B MORTGAGES ▪ ▪ Disciplined underwriting process Capital-efficient investment properties Combined portfolios ▪ Average lease terms remaining of ~9 years1 ▪ 63% of mortgages are insured ▪ Large portion rented to
Slide 34: Immediate Sensitivities
IMMEDIATE SENSITIVITIES For more information on sensitivities, please refer to the quarterly and annual Management’s Discussion IMMEDIATE IMPACT and Analysis (MD&A) as well as the “Forward-looking statements” section in this document Equity Equity Net income 1 OCI3 and Solvency ratio CSM OCI only3 a
Slide 35: Core Earnings Sensitivities
CORE EARNINGS SENSITIVITIES † REVENUES & EXPENSES DIRECTLY IMPACTED BY THE IMPACT ON FUTURE LEVEL OF EQUITY MARKETS QUARTER CORE as at March 31, 2025 Segment Variation EARNINGS1,† Description of shock AND INTEREST RATES $M post-tax ▪ Expected return on non-fixed +5% 0.3 Immediate +5% change in marke
Slide 36: Insurance, Canada
INSURANCE, CANADA First quarter ($M, unless otherwise indicated) 2025 2024 Variation Individual Insurance Sales1 Minimum premiums2 86 80 8% Excess premiums3 13 9 44% Total 99 89 11% Gross premiums 703 635 11% Net premiums 581 516 13% Number of policies issued Life insurance only 38,301 37,164 3% Lif
Slide 37: Insurance, Canada (cont.)
INSURANCE, CANADA (cont.) First quarter ($M, unless otherwise indicated) 2025 2024 Variation Group Insurance Employee Plans Sales - New business during the year 70 30 133% Net premiums 360 339 6% Premium equivalents and deposits 71 69 3% Special Markets Sales - Gross premiums 108 106 2% Net premiums
Slide 38: Wealth Management
WEALTH MANAGEMENT First quarter ($M, unless otherwise indicated) 2025 2024 Variation Individual Wealth Management Sales - Gross sales Segregated funds 1,939 1,278 52% Mutual funds 647 486 33% Other savings products 467 581 (20%) Total1 3,053 2,345 30% Sales - Net sales Segregated funds2 1,173 557 61
Slide 39: Wealth Management (cont.)
WEALTH MANAGEMENT (cont.) First quarter ($M, unless otherwise indicated) 2025 2024 Variation Group Savings and Retirement Sales - Gross sales Accumulation contracts Other accumulation contracts 63 29 117% Segregated funds 739 774 (5%) Total 802 803 0% Insured annuities (general fund)1 39 115 (66%) T
Slide 40: US Operations
US OPERATIONS First quarter ($M, unless otherwise indicated) 2025 2024 Variation Individual Insurance Sales ($US) 68 42 62% Sales ($CAN) 97 56 73% Net premiums ($CAN) 255 173 47% Dealer Services Sales ($US) 306 248 23% Sales ($CAN) 438 334 31% Net premiums ($CAN) 152 110 38% Premium equivalents ($CA
Slide 41: Net Premiums, Premium Equivalents and Deposits
NET PREMIUMS, PREMIUM EQUIVALENTS AND DEPOSITS Net premiums, premium ($M, unless otherwise indicated) Q1/2025 YoY equivalents and deposits ($B) Insurance, Canada 20.4 Individual Insurance 581 13% 16.6 16.8 5.7 Group Insurance 531 5% 15.4 Dealer Services 139 9% 14.0 4.2 4.1 4.0 iA Auto and Home 124 1
Slide 42: Asset Growth
ASSET GROWTH Total AUM and AUA (assets under management and assets under administration, end of period, $B) Assets under management and assets under administration 259.4 264.0 March 31 ($B, unless otherwise indicated) QoQ YoY 2025 221.2 218.8 197.5 197.4 Assets under management 189.4 130.6 133.4 Gen
Slide 43: CSM Movement Analysis
1 CSM MOVEMENT ANALYSIS ($M, unless otherwise indicated) Q1/2025 Q1/2024 YoY CSM - Beginning of period 6,899 5,925 Q1/2025 highlights Organic CSM movement Impact of new insurance business 191 158 21% Organic financial growth 92 75 23% Organic CSM increase of $132M Insurance experience gains (losses)
Slide 44: 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 45: Footnotes for slides 8 and 12
Footnotes for slide 8 on Key Results 1 Within the meaning of applicable securities laws, such financial target constitutes a “financial outlook” and “forward-looking information”. Please refer to slide 12 "Financial targets" for additional information. 2 Capital available for deployment, ROE, organi
Slide 46: Footnotes for slides 22 and 27
Footnotes for slide 22 on Robust Capital Position 1 iA Financial Corporation Inc. and rounded to the nearest 0.5 percentage points. 2 2022 figures calculated according to the IFRS 4 accounting standard and with the capital standard applicable in 2022. 3 Reflects an optimized capital structure that c
Slide 47: Acronyms
ACRONYMS 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 48: Acronyms (cont.)
ACRONYMS (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 49: iA Financial Group trademark notice
iA Financial Group is a business name and trademark of iA Financial Corporation Inc. 49