Ia Financial Corporation Inc. · TSX:IAG
Ia Financial — Q2 2025 Earnings Presentation
50 slides from Ia Financial's earnings presentation, Aug 6, 2025
Slide 1: Second Quarter 2025 Conference Call
Second Quarter 2025 Conference Call Presenters: Denis Ricard, President and CEO Éric Jobin, EVP, CFO and Chief Actuary August 6, 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 37 Insurance, Canada 8 Q2/2025 financial targets 26 Dividend 38 Insurance, Canada (cont.) 9 Sales - Insurance, Canada 27 Capital deployment priorities 39 Wealth Management 10 Sales - Wealth Managemen
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: Q2/2025 – Profitable Growth Key Results
Q2/2025 – PROFITABLE GROWTH KEY RESULTS 27% YoY growth, meeting ROE expansion $3.49 Core EPS†† medium-term target1 Q2 trailing-12-month core ROE†† of 17.0% Q2 trailing-12-month ROE of 14.7% 17%+ $3.43 EPS Q2 annualized core ROE†† of 18.6% Core ROE†† Q2 annualized ROE of 18.3% target for 20271 Curren
Slide 9: Insurance, Canada - Business Growth
Insurance, Canada - Business Growth Q2/2025 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 Q2/2025 HIGHLIGHTS INDIVIDUAL INDIVIDUAL SEGREGATED FUNDS MUTUAL FUNDS Individual Wealth (gross sales in $M) (gross sales in $M) • Good growth for both gross and net sales of 1,368 segregated funds, reflecting the strength of our 1,270 distribution networks and co
Slide 11: US Operations - Business Growth
US OPERATIONS - Business Growth Q2/2025 HIGHLIGHTS Individual Insurance INDIVIDUAL INSURANCE DEALER SERVICES • Solid result driven by good growth in the final (sales in US$M) (sales in US$M) expense and middle/family markets and the addition of sales from the Vericity acquisition • Customized portfo
Slide 12: Financial targets
Financial targets 1 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 23% 17.0% $325M 28.1% Core EPS†† Core ROE†† Organic capital Core dividend YoY growth generation Trailing 12-m
Slide 13: iA to Acquire RF Capital Group
iA TO ACQUIRE UNLOCKING COMPELLING SYNERGIES • Capturing opportunities across technology, operations, RF CAPITAL GROUP innovation and products while allowing RF Capital and its advisors to maintain operational independence and brand identity RF Capital is one of the largest independent wealth manage
Slide 14: Éric Jobin
Éric Jobin EVP, Chief Financial Officer and Chief Actuary 14
Slide 15: Q2/2025 Profitability and Highlights
Q2/2025 PROFITABILITY AND HIGHLIGHTS FINANCIAL STRENGTH ROE expansion • Q2 trailing-12-month core ROE†† of 17.0% • Q2 trailing-12-month ROE of 14.7% • Q2 annualized core ROE†† of 18.6% Q2/2025 Q2/2024 YoY • Q2 annualized ROE of 18.3% Profitability Strong increase in core earnings for all three †† Co
Slide 16: Q2/2025 Earnings Performance
Q2/2025 EARNINGS PERFORMANCE Net income1 Core earnings† ($M) +56% +22% Strong growth in all 321 327 three operating segments, both on 267 130 reported and core Insurance, 133 206 Canada basis 106 97 105 Wealth Management 113 98 55 US Operations 91 36 22 8 103 Investment 91 102 63 (53) Corporate (50)
Slide 17: Insurance, Canada
Q2/2025 EARNINGS INSURANCE, CANADA PER SEGMENT Q2/25 Q2/24 YoY Core earnings† Core earnings† $133M $106M 25% ($M) • Higher expected insurance earnings driven by ◦ Increase in expected earnings on PAA1 business from iAAH 327 ◦ Increase in the combined RA release1 and CSM recognized for services provi
Slide 18: Wealth Management
Q2/2025 EARNINGS WEALTH MANAGEMENT PER SEGMENT Q2/25 Q2/24 YoY Core earnings† Core earnings† $113M $98M 15% ($M) • Increase in the combined RA release and CSM recognized 327 for services provided from ◦ Favourable impact of strong net segregated fund sales ◦ Favourable impact of financial market per
Slide 19: US Operations
Q2/2025 EARNINGS US OPERATIONS PER SEGMENT Q2/25 Q2/24 YoY Core earnings† $36M $22M 64% † Core earnings • Strong core insurance service result1 increase of $28M2 ($M) reflecting ◦ Increase in the combined RA release and CSM recognized for 327 services provided, mainly due to the addition of Vericity
Slide 20: Investment
Q2/2025 EARNINGS INVESTMENT PER SEGMENT Q2/25 Q2/24 YoY † Core earnings† $102M $91M 12% Core earnings ($M) Prior to taxes, financing charges on debentures and dividends, core net investment result1 of $127M compares favourably with 327 $108M a year ago • $123M2 expected investment earnings1 driven b
Slide 21: Corporate
Q2/2025 EARNINGS CORPORATE PER SEGMENT Q2/25 Q2/24 YoY Core earnings† Core earnings† ($57M) ($50M) (14%) ($M) • Core other expenses of $79M (before taxes) composed of: 327 ◦ $68M (before taxes) core other expenses and in line with target of $68M ± $5M (before taxes)1 ◦ $11M reflecting a higher provi
Slide 22: Robust Capital Position
ROBUST CAPITAL POSITION Supported by ongoing organic capital generation Capital available Q2/2025 MOVEMENTS Solvency ratio1 Solvency ratio 1,2 for deployment 3 (end of period) Beginning of quarter 132% $1.4B Core earnings† net of dividends 3.0% $243M 145% Organic CSM4 growth (excl. seg funds) 1.0% $
Slide 23: Question & Answer Session
Question & Answer Session Finanetal Group
Slide 24: Appendices
Appendices Finanetal Group
Slide 25: Book Value per Share
$76.02 1 BOOK VALUE PER SHARE at June 30, 2025 P/BV ratio of 1.96 at June 30, 2025 CAGR 1-year +9% 5-year +7% 10-year +8% Since IPO2 +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 1.
Slide 26: Dividend to common shareholders
Dividend to common shareholders Dividend of 99¢ per common share payable in Q3/2025 $1.00 $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 $0.20 regulatory restrictions in November 2021 First
Slide 27: Deploying available capital soundly
Deploying available capital soundly Investing actively in high-ROE business and digital evolution Capital available for deployment1 $1.5B As at June 30, 2025 Capital allocation priorities Creating Value Returning Value #1 Organic growth #2 Disciplined #3 Dividends #4 NCIB • ROE expansion driven by a
Slide 28: Operational Efficiency Initiatives
OPERATIONAL EFFICIENCY INITIATIVES Q2/2025 corporate expenses 1 Corporate segment - Core other expenses target:2 2022+ 2025 quarterly run rate of $68M ± $5M pre-tax In-depth top-down review of projects Corporate segment ($ million, pre-tax) Q1/25 Q2/25 Q3/25 Q4/25 2023-2024 Completion of regulatory
Slide 29: Core Reconciliation
1 Q2/2025 RECONCILIATION OF EARNINGS ACCORDING TO THE DOE Insurance, Wealth ($M, unless otherwise indicated) US Operations Investment Corporate TOTAL Canada Management YoY Expected insurance earnings 160 104 53 — — 317 16% Impact of new insurance business (14) — — — — (14) DRIVERS OF EARNINGS + Core
Slide 30: Q2/2025 Drivers of Earnings
Q2/2025 DRIVERS OF EARNINGS Second quarter Year-to-date at June 30 ($M, unless otherwise indicated) 2025 2024 YoY 2025 2024 YoY CORE EARNINGS† ACCORDING TO THE DRIVERS OF EARNINGS1 - CONSOLIDATED Core insurance service result Risk adjustment release 74 67 10% 147 133 11% CSM recognized for services
Slide 31: 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 32: Investment Portfolio
INVESTMENT PORTFOLIO Resilient portfolio composed of high-quality assets and diversified exposures Bonds - Corporates - BB and lower: 0.5% Investment properties: 4% Mortgages - Insured: 2% Fixed income ALM1-oriented portfolio Mortgages - Uninsured: 1% ▪ see further details on slide 33 ▪ Bonds - Corp
Slide 33: $31.6B Bond Portfolio
$31.6B BOND PORTFOLIO Distribution by industry sector High-quality and conservative Distribution by category of issuer (Corporate bonds) Financial services 20.6% portfolio Governments 25.8% Utilities 26.2% Municipalities 3.2% Consumer cyclical and 16.8% BOND PORTFOLIO IS 69% OF TOTAL PORTFOLIO non-c
Slide 34: High-Quality Investment Properties & Mortgages Portfolios
HIGH-QUALITY INVESTMENT PROPERTIES & MORTGAGES PORTFOLIOS $1.6B INVESTMENT PROPERTIES $1.1B MORTGAGES Capital-efficient investment properties1 ▪ Disciplined underwriting process ▪ Combined portfolios ▪ Average lease terms remaining of ~8 years1,2 ▪ 62% of mortgages are insured ▪ Large portion rented
Slide 35: 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 36: Core Earnings Sensitivities
REVENUES & EXPENSES CORE EARNINGS SENSITIVITIES DIRECTLY IMPACTED BY THE IMPACT ON FUTURE LEVEL OF EQUITY MARKETS QUARTER CORE as at June 30, 2025 Segment Variation EARNINGS1,† Description of shock AND INTEREST RATES $M post-tax ▪ Expected return on non-fixed +5% 0.3 Immediate +5% change in market v
Slide 37: Insurance, Canada
INSURANCE, CANADA Second quarter Year-to-date at June 30 ($M, unless otherwise indicated) 2025 2024 Variation 2025 2024 Variation Individual Insurance Sales1 Minimum premiums2 91 87 5% 177 167 6% Excess premiums3 12 11 9% 25 20 25% Total 103 98 5% 202 187 8% Gross premiums 741 659 12% 1,444 1,294 12
Slide 38: Insurance, Canada (cont.)
INSURANCE, CANADA (cont.) Second quarter Year-to-date at June 30 ($M, unless otherwise indicated) 2025 2024 Variation 2025 2024 Variation Group Insurance Employee Plans Sales - New business during the year 8 25 (68%) 78 55 42% Net premiums 381 351 9% 741 690 7% Premium equivalents and deposits 73 67
Slide 39: Wealth Management
WEALTH MANAGEMENT Second quarter Year-to-date at June 30 ($M, unless otherwise indicated) 2025 2024 Variation 2025 2024 Variation Individual Wealth Management Sales - Gross sales Segregated funds 1,368 1,270 8% 3,307 2,548 30% Mutual funds 442 468 (6%) 1,089 954 14% Other savings products 428 541 (2
Slide 40: Wealth Management (cont.)
WEALTH MANAGEMENT (cont.) Second quarter Year-to-date at June 30 ($M, unless otherwise indicated) 2025 2024 Variation 2025 2024 Variation Group Savings and Retirement Sales - Gross sales Accumulation contracts Other accumulation contracts 71 54 31% 134 83 61% Segregated funds 541 524 3% 1,280 1,298
Slide 41: US Operations
US OPERATIONS Second quarter Year-to-date at June 30 ($M, unless otherwise indicated) 2025 2024 Variation 2025 2024 Variation Individual Insurance Sales ($US) 78 49 59% 146 91 60% Sales ($CAN) 108 68 59% 205 124 65% Net premiums ($CAN) 253 179 41% 508 352 44% Dealer Services Sales ($US) 296 279 6% 6
Slide 42: Net Premiums, Premium Equivalents and Deposits
NET PREMIUMS, PREMIUM EQUIVALENTS AND DEPOSITS Net premiums, premium ($M, unless otherwise indicated) Q2/2025 YoY equivalents and deposits ($B) Insurance, Canada 20.4 Individual Insurance 614 15% 16.6 16.8 5.7 Group Insurance 544 7% 15.4 Dealer Services1 203 19% 14.0 4.2 4.1 4.0 iA Auto and Home 203
Slide 43: Asset Growth
ASSET GROWTH Assets under management and assets under administration Total AUM and AUA ($B, unless otherwise indicated) June 30 QoQ YoY (assets under management and assets under administration, end of period, $B) 2025 273.8 Assets under management 261.3 General fund 57.9 —% 8% 221.2 220.2 Segregated
Slide 44: CSM Movement Analysis
1 CSM MOVEMENT ANALYSIS ($M, unless otherwise indicated) Q2/2025 Q2/2024 YoY Q2/2025 highlights CSM - Beginning of period 6,932 6,159 Organic CSM movement Organic CSM increase of $140M Impact of new insurance business 195 167 17% • 17% increase of impact of new insurance business Organic financial g
Slide 45: Investor Relations
INVESTOR RELATIONS Contact Caroline Drouin Tel.: 418-684-5000, ext. 103281 VP-Investor-Relations@ia.ca Next Reporting Dates Q3/2025 - November 4, 2025 after market close Conference call on November 5, 2025 Q4/2025 - February 17, 2026 after market close Conference call on February 18, 2026 Q1/2026 -
Slide 46: 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 At June 30, 2025. 3 ROE, net premiums, premiu
Slide 47: Footnotes for slides 15 and 22
Footnotes for slide 15 on Q2/2025 Profitability and financial strength 1 Presented on a trailing-12-month basis. 2 End of period. 3 This item is a component of the drivers of earnings (DOE). Refer to the “Non-IFRS and Additional Financial Measures” section of this document and of the Q2/2025 MD&A fo
Slide 48: 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 49: 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 50: 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. 50