Ia Financial Corporation Inc. · TSX:IAG
Ia Financial — Investor Presentation (November 2024)
36 slides from Ia Financial's investor presentation, November 2024
Slide 1: Inspired to Grow Together, Now
INSPIRED TO GROW TOGETHER, NOW Investor presentation November 2024
Slide 2: Table of Contents
TABLE OF CONTENTS 3 iA Financial Group overview APPENDICES 4 Shareholder value growth 22 Business growth 5 Shareholder return 23 Investment portfolio 6 Earnings power 24 Bond portfolio 7 Return on equity 25 Investment properties & mortgages 8 Growth strategy 26 Awards and distinctions 9 Business seg
Slide 3: The Group Today
THE GROUP TODAY iA Financial Group is one of the largest insurance and wealth management groups in Canada, with operations in the United States. 5 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 ti
Slide 4: Delivering Sustained Shareholder Value Growth
IAG – iA Financial Group DELIVERING SUSTAINED SHAREHOLDER VALUE GROWTH FOCUSED VALUE FOR FINANCIAL ON GROWTH SHAREHOLDERS STRENGTH SUSTAINABLE UPWARD EARNINGS INDUSTRY LEADING VALUE CREATION ROBUST CAPITAL POSITION TRAJECTORY • 11% share price CAGR since IPO • Solvency ratio4 of 140%, well above • T
Slide 5: Shareholder Value Creation
SHAREHOLDER VALUE CREATION Industry leading share price and book value growth since IPO $112.10 Reflecting sound management approach and long-term vision Sept. 30, 2024 IAG Share Price $71.63 Historical CAGR: 11% Sept. 30, 2024 IFRS 17 & IFRS 9 transition Book value maintained at transition $8.44 Bo
Slide 6: Growing Earnings Over Time
GROWING EARNINGS OVER TIME EPS Core EPS†† 9.31 +48% +16% EPS ($) YoY YoY Core EPS1,†† ($) 8.12 7.48 7.44 Medium-term core EPS†† target 10%+ growth on average 4.21 per year 3.57 10% 2015-2023 CAGR for EPS and core EPS†† 2015 2016 2017 2018 2019 2020 2021 2022 2023 YTD at Sept. 1 30, 2024 First disclo
Slide 7: Expanding ROE
EXPANDING ROE With 30+ acquisitions since 2015 New sales in all business units priced at a ROE higher than 15% ROE1,2 15.3% 15%+ MEDIUM-TERM 1,3,†† Core ROE 14.4% 14.5% CORE ROE†† TARGET 11.5% 11.6% 11.2% Meeting †† medium-term 2015-2022 core ROE always in-line or above annual guidance target in 202
Slide 8: Proven Growth Strategy With a Strong Track Record
PROVEN GROWTH STRATEGY WITH A STRONG TRACK RECORD Q3/24 RESULTS Growth in key long-term profitability drivers • Net premiums, premium equivalents and deposits: $4.9B (+25% YoY) • Total AUM and AUA: $249.7B (+22% YoY) Net premiums, premium equivalents Total assets under management (AUM) • Solid sales
Slide 9: Business Mix Tailored for Long-Term Value Creation
BUSINESS MIX TAILORED FOR LONG-TERM VALUE CREATION Distinctive distribution breadth • Many growth synergies • Benefits of diversification Wealth Management Insurance, Canada US Operations THREE OPERATING – Individual Wealth – Individual Insurance – Individual Insurance BUSINESS SEGMENTS – Management
Slide 10: Insurance, Canada
STRONG SALES MOMENTUM INSURANCE, CANADA Individual Insurance and retail distribution Individual Insurance • Canadian leader for number of policies sold1 Sales2 ($M) Canadian leader in individual • Diversified, distinctive and broad distribution network • Proximity with advisors providing direct acce
Slide 11: Wealth Management
WEALTH MANAGEMENT Individual Wealth Management STRONG SALES MOMENTUM Seg Funds • #1 in Canada for gross and net seg fund sales1 3.6 Leading seg fund industry, driven • Wide range of retail savings, investments and Gross Sales ($B) by complete range of products, retirement products for individuals, i
Slide 12: US Operations
US OPERATIONS Individual Insurance Leveraging Canadian • Strong growth potential and proven ability to create growth organically and through expertise to drive growth acquisitions Dealer Services in both business units • Strong growth potential organically and through acquisitions in a fragmented in
Slide 13: Financial Strength
FINANCIAL STRENGTH Ongoing organic To support growth strategy capital generation ROBUST CAPITAL POSITION A comprehensive value creation KPI representing the amount of capital generated in excess of the Company's Solvency ratio of 140%,1 well above 120% operating target, highlights the operating solv
Slide 14: Growth-Driven Strategy – Capital Deployment Priorities
GROWTH-DRIVEN STRATEGY – FOCUSED ON SHAREHOLDER VALUE Capital deployment priorities Recent initiatives 1 Profitable organic growth • Supporting strong business growth and digital transformation Investing in digital evolution • New sales generating ROE above 15% to propel growth $1.0B 2 30+ acquisiti
Slide 15: Returning Value to Shareholders
RETURNING VALUE TO SHAREHOLDERS Dividend of 90¢ per share payable in Steadily increasing dividends Q4/2024 $0.90 $0.80 Core dividend payout ratio†† $0.70 target of 25%-35% $0.60 33% increase since IFRS 17 introduction $0.50 (from $0.675 in Q4/22) $0.40 Largest dividend increase (+29%) among Canadian
Slide 16: Medium-Term Guidance
MEDIUM-TERM GUIDANCE Core EPS†† growth 10%+ (medium-term) annual average Core ROE†† 15%+ (medium-term) Solvency ratio 120% (operating target) Organic capital generation $600M+ (2024) 25% to 35% Dividend payout ratio, core†† of core earnings† † This item is a non-IFRS financial measure. 16 †† This it
Slide 17: Relative Performance
RELATIVE PERFORMANCE Financtal Group,
Slide 18: Industry Leader for Share Price Growth
INDUSTRY LEADER FOR SHARE PRICE GROWTH IAG +2,811% Total return (Share price growth with dividend reinvested, at year-end) Best performance of Canadian lifecos 14% Compound Annual Growth Rate since IPO1 vs. 11% for peers2 PEERS3 +1,228% 0% IPO 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2
Slide 19: Industry Leader for Book Value Growth
INDUSTRY LEADER FOR BOOK VALUE GROWTH Book value per share1 Since its IPO, iA Financial Group has experienced substantial growth in book value per share, IAG and dividends paid (at year-end) reflecting the Company’s relentless focus on creating +96% enduring value for our shareholders over time IAG
Slide 20: Price-to-Book Ratio
PRICE-TO-BOOK RATIO Trading at a 1.79x1 → 8% discount vs peers2 Volatility in the context of the IFRS 17 and IFRS 9 transition % Premium (discount) vs peers2 8% discount Nov. 11, 2024 IAG 2014-2023 - 10-year average Premium (discount) = (14%) Price-to-book = 1.22x 2004 2009 2014 2019 2024 Dec. 31 De
Slide 21: Appendices
APPENDICES Financtal Group,
Slide 22: Q3/2024 Sales – Continued Strong Growth Momentum
Q3/2024 SALES – CONTINUED STRONG GROWTH MOMENTUM SALES ($M, unless otherwise indicated) Q3/2024 Q3/2023 Variation HIGHLIGHTS INSURANCE, CANADA ▪ Solid Q3 sales for Individual Insurance in Individual Insurance 103 96 7% Canada reflecting the strength of all our distribution networks, the excellent Gr
Slide 23: Investment Portfolio
INVESTMENT PORTFOLIO Resilient portfolio composed of high-quality assets and diversified exposures Bonds - Corporates - BB and lower: 0.4% Investment properties: 4% Mortgages - Insured: 2% ü Fixed income ALM1-oriented portfolio ▪ see further details on slide 24 Bonds - Corporates - Mortgages - Unins
Slide 24: $31.3B Bond Portfolio
$31.3B BOND PORTFOLIO High-quality and conservative portfolio Distribution by industry sector Distribution by category of issuer (Corporate bonds) BOND PORTFOLIO IS 70% OF TOTAL PORTFOLIO Financial services 19.4% Governments 27.1% • 69% are corporate bonds and 31% are government & Utilities 25.9% mu
Slide 25: High-Quality Investment Properties & Mortgages
HIGH-QUALITY INVESTMENT PROPERTIES & MORTGAGES $1.6B INVESTMENT PROPERTIES $1.3B MORTGAGES ▪ Capital-efficient investment properties ▪ Disciplined underwriting process ▪ Average lease terms remaining of ~9 years 1 Combined portfolios ▪ Large portion rented to governments ▪ 66% of mortgages are insur
Slide 26: 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 RECOGNITION #1 Wealth distribution (non-bank assets including seg funds)3 IN STRATEGIC EXECUTION #1 Distinction Awards - Mental Health and Wellness Large Service Companies ca
Slide 27: 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 – Development of clima
Slide 28: What We Do at iA
WHAT WE DO AT iA -60% -40% 39% 73% First materiality Integration of TCFD assessment carried out Reduction in GHG Reduction in carbon of our Canadian recommendations and women in Senior with our stakeholders emission intensity from intensity of our public employees4 took part in SASB standards to Lea
Slide 29: 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 30: 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 31: 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 32: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This document may contain statements relating to strategies used by iA Financial Group or statements that are predictive in nature, that depend upon or refer to future events or conditions, or that include words such as “may”, “will”, “could”, “should”, “would”, “suspect”,
Slide 33: 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 International Financial Reporting Standards (“IFRS”). The Company also publishes certain financial measures or ratios that ar
Slide 34: Investor Relations
INVESTOR RELATIONS Contact Marie-Annick Bonneau Tel.: 418-931-0142 VP-Investor-Relations@ia.ca Next Reporting Dates Q4/2024 - February 18, 2025 after market close Conference call on February 19, 2025 Q1/2025 - May 8, 2025 Conference call on May 8, 2025 Q2/2025 - August 5, 2025 after market close Con
Slide 35: Footnotes
Footnotes for slide 4 1 ROE: Consolidated net income attributed to common shareholders divided by the average common shareholders’ equity for the period. Core ROE is a non-IFRS ratio; see the “Non-IFRS and Additional Financial Measures” section in this document and in the Q3/2024 MD&A. 2 Net premium
Slide 36: iA Financial Group trademark notice
iA Financial Group is a business name and trademark of iA Financial Corporation Inc. and Industrial Alliance Insurance and Financial Services Inc.
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