Ia Financial Corporation Inc. · TSX:IAG
Ia Financial — Industrial Alliance Insurance and Financial Services — Non-Deal Roadshow (March 2015)
22 slides from Ia Financial's roadshow presentation, March 2015
Slide 1: Investor Presentation
Investor Presentation Yvon Charest President and CEO René Chabot EVP and Chief Actuary Denis Ricard EVP, Business Development March 2015
Slide 2: A New Look for Industrial Alliance
A New Look for Industrial Alliance ► Introduced March 3, 2015 ► Updated web site: ia.ca ► Invested in you. 2
Slide 3: 2014 In a Nutshell
2014 In a Nutshell $3.97 EPS in 2014, exceeding Solvency ratio of 216%, with capital guidance for 3rd year in a row available for deployment ($750M) Performance Solidity Growth Return Premiums and deposits robust at $7.5B ROE of 12.4% in 2014 Fee-earning assets up 11% in 2014 2 dividend
Slide 4: Earnings Growth
Earnings Growth Guidance has grown annually by over 11% Earnings per common share ($ diluted) Elements that could drive 2015 earnings... 3.97 4.20 Guidance 3.80 3.57 3.80 … to top of guidance: 3.40 ► Lower strain due to better product mix 3.22 3.40 3.00 ► Employee Plans improvement 3.10 ► US profit
Slide 5: Interest Rate Exposure
Interest Rate Exposure Limited to total of $100M per 10 bps variation (IRR & URR) Sensitivity to a Exposure Reflected in earnings ±10 bps variation IRR ±$35M Following iA year-end assumption review URR ±$59M Expecting more stability Key rate to watch At 12/31/2014 In reserves At 03/04/2015 Canada 30
Slide 6: Investment Gains Through Management Actions
Investment Gains Through Management Actions Investment Gains (After-tax) Asset Liability Management (ALM) Optimizes cash flows within silos to reduce re-investment risk Tools: inter-segment notes, bond forwards, swaps, etc. Reduces the level of mismatch provisions in the reserves More than R
Slide 7: 2014 Net Income by Segment
2014 Net Income by Segment $400.4 million Personal Financial Services Group Products and Services $249.6M $106.2M $26.8M $17.8M Individual Individual Group Group Savings Wealth Insurance Insurance and Retirement Management 58% 5% 16% 11% 10% Life & Seg. Funds, Mutual Funds Life Disability GIC & Insu
Slide 8: Maintaining Our Successful Growth Strategy
Maintaining Our Successful Growth Strategy Head-on competition Individual Insurance (CAN) Distribution is the with all players, in all Individual Wealth Mgmt name of the game markets and geographies Group Ins. Employee Plans Leverage group Selective competition Group Savings and Ret. relatio
Slide 9: Individual Insurance
Individual Insurance Improved balance between top and bottom lines ($Million, unless otherwise indicated) 2014 2013 2012 2011 Top Line Sales (target premium) 225.5 234.3 243.3 209.4 Premiums 1,495.1 1,425.2 1,339.3 1,248.2 Market Share1 9.2% 11.5% 12.0% 10.6% Bottom Line Operating profit (pretax) 18
Slide 10: Individual Insurance
Individual Insurance Focus now on top-line initiatives Sales1 (in $M) 243 2014 234 226 ► Represents 58% of net income 209 ► Q4 sales pick up with +9% YoY growth 187 ► Brokers rebuilding pipeline for 10/8 replacement product 147 ► Rates decreased on other products to revitalize sales ► Sales growing
Slide 11: Individual Wealth Management – Seg Funds
Individual Wealth Management – Seg Funds Business targeted for growth BusinessBusiness profile in 2014 Profile 2014 Comments ► Represents 16% of net income Top Line ► Gross sales up 37% over 2013 AUM $11.8B ► Positive net sales of $289M, while industry is negative Gross sales $1.4B ► New cross-Canad
Slide 12: Individual Wealth Management – Mutual Funds
Individual Wealth Management – Mutual Funds Business targeted for growth BusinessBusiness profile in 2014 Profile 2014 Comments ► Represents 11% of net income Top Line ► Gross sales down 16% over 2013 AUM $11.8B ► Net redemptions mainly Gross sales $1.9B due to Laurentian Bank channel Net sales ($11
Slide 13: Wealth Assets Growing at Healthy Pace
Wealth Assets Growing at Healthy Pace Important driver of profitability NET SALES 2014 2013 2012 2011 2010 2009 2008 ($Million) Segregated funds 289 (89) 309 769 925 476 323 GMWB popularity Mutual funds 272 999 460 502 668 214 223 (excluding LBC) Total net fund sales 561 911 768 1 271 1 593 690 546
Slide 14: Other Capital-light Businesses
Other Capital-light Businesses In selective, niche or underserved markets Sales Year 2014 Premiums Growth Group Insurance Employee Plans $914.2M +18% ► Competes selectively by market & geography Dealer Services $535.8M +2% ► A niche market with few competitors Special Markets $179.8M +5% ► A niche m
Slide 15: Balance Sheet Flexibility
Balance Sheet Flexibility Meaningful capital for deployment with good downside protection (end of period) 2014 2013 2012 2011 Solvency ratio 216%1 217% 217% 189% Capital sensitivity (17%) (16%) (20%) (26%) to a 25% drop in markets Leverage ratio 26.1%1 25.8% 35.9% 33.3% Coverage ratio 7.3x1 6.2x 6.1
Slide 16: Significant Capacity to Weather Market Downturns
Significant Capacity to Weather Market Downturns At At At Dec. 31, 2014 Sept. 30, 2014 Dec. 31, 2013 ► Stocks Level of S&P/TSX before matching 9,900 points 11,100 points 10,500 points provisions require strengthening long-term (-32%) (-26%) (-23%) for future policy benefits liabilities ► Solvency Le
Slide 17: Sensitivity to Rates Capped at $100M/10 bps
Sensitivity to Rates Capped at $100M/10 bps At At At Dec. 31, 2014 Sept. 30, 2014 Dec. 31, 2013 Impact on net income of a ►IRR 10 bps decrease in IRR ($35 million) ($25 million) ($20 million) Impact on net income of a ►URR 10 bps decrease in URR ($59 million) ($66 million) ($59 million) ►Total inter
Slide 18: Strong Track Record of Value Creation
Strong Track Record of Value Creation Book Value Per Share $33.83 (end of period) CAGR 1-year +10% $9.36 5-year +8% Since IPO +10% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 18
Slide 19: Investor Relations
Investor Relations Contact Grace Pollock Tel. 418-780-5945 grace.pollock@ia.ca Reporting Dates Q1/15 – May 7, 2015 Q2/15 – July 30, 2015 Q3/15 – November 4, 2015 Q4/15 – February 11, 2016 For information on our earnings releases, conference calls and related disclosure documents, consult the Investo
Slide 20: 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 21: 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”, “would”, “suspect”, “expec
Slide 22: iA Financial Group
IAA Financial Group INVESTED IN YOU.
Industrial Alliance Insurance and Financial Services — Non-Deal Roadshow (March 2015) on 6ix