iA Financial Group Reports First Quarter Results and an 11% Common Dividend Increase

About this update from Ia Financial Corporation Inc.

Delivering on financial targets – Strong momentum in wealth management This news release presents financial information in accordance with IFRS ® Accounting Standards (referred to as "IFRS" in this document) and certain non-IFRS and additional financial measures used by the Company when evaluating its results and measuring its performance. For relevant information about non-IFRS financial measures and other specified financial measures used in this document, see the "Non-IFRS and Additional Financial Measures" section in this document and in the Management’s Discussion and Analysis for the period ended March 31, 2026 (the "Q1/2026 Management’s Discussion and Analysis"), which is hereby incorporated by reference and is available for review at sedarplus.ca or on iA Financial Group’s website at ia.ca . The results presented below are for iA Financial Corporation Inc. ("iA Financial Group" or the "Company"). FIRST QUARTER HIGHLIGHTS QUEBEC CITY, May 05, 2026 --( BUSINESS WIRE )--For the first quarter ended March 31, 2026, iA Financial Group (TSX: IAG) recorded core diluted earnings per common share (EPS) †† of $3.25, which is 12% higher than the same period in 2025. Core return on common shareholders’ equity (ROE) †† for the trailing 12 months was 17.5%. First quarter net income attributed to common shareholders was $137 million, diluted EPS was $1.49 and ROE for the trailing 12 months was 14.3%. The solvency ratio was 134% as at March 31, 2026, highlighting a robust capital position. "Solid core earnings growth in the first quarter demonstrates the power of our unique and diversified business model, the depth of our distribution capabilities, and our ability to execute in a dynamic environment," commented Denis Ricard, President and CEO of iA Financial Group. "Elevated activity on our wealth management and insurance distribution platforms resulted in a 5% increase in individual insurance policies issued, reinforcing our leadership position in Canada. It also resulted in record gross sales in segregated funds and continued solid growth in U.S. individual insurance." "We remain focused on financial discipline, profitable growth and sustainable value creation for shareholders," added Éric Jobin, Executive Vice-President, CFO and Chief Actuary. "We continue to manage expenses effectively while maintaining a robust capital position supported by strong organic capital generation. This strength provides significant flexibility to deploy capital and supports higher capital returns, as reflected by our decision to increase the maximum percentage of shares eligible for repurchase to 8% of public float." Earnings Highlights Unless otherwise indicated, the results presented in this document are in Canadian dollars and are compared with those from the corresponding period last year. FINANCIAL TARGETS The table below presents the progress towards achieving the Company’s annual and medium-term financial targets. ANALYSIS OF EARNINGS BY BUSINESS SEGMENT The following tables set out the core earnings † and net income attributed to common shareholders by business segment. An analysis of the performance by business segment for the first quarter and a reconciliation between the net income attributed to common shareholders and core earnings † for each business segment are provided in the following pages. Core Earnings (Losses) † Net Income (Loss) Attributed to Common Shareholders Insurance, Canada Wealth Management US Operations Investment Corporate RECONCILIATION OF NET INCOME ATTRIBUTED TO COMMON SHAREHOLDERS AND CORE EARNINGS † Core earnings † of $298 million in the first quarter are derived from net income attributed to common shareholders of $137 million, after applying a total adjustment of $161 million (post tax) for: Net Income Attributed to Common Shareholders and Core Earnings † Reconciliation – Consolidated Contractual service margin (CSM) 16 During the first quarter, the CSM increased organically by $136 million. This increase is due to the positive impact of new insurance business of $202 million, organic financial growth of $114 million and net insurance experience gains of $39 million, partly offset by the CSM recognized for services provided in earnings of $219 million, up 12% from a year earlier. Non-organic items led to a decrease in the CSM of $77 million during the first quarter, mostly due to the impact of market variations. As a result, the total CSM increased by $59 million (+1%) during the quarter to stand at $7,709 million as at March 31, 2026, an increase of 11% over the last 12 months. Income taxes The federal government released its budget on November 4, 2025, outlining its intended tax policy directions. Pursuant to this budget, Bill C-15 was enacted on March 26, 2026, implementing certain measures, including some that apply retroactively to January 1, 2025. Consequently, the results for first quarter 2026 reflect an increase in the core effective tax rate, as well as a $40 million adjustment recorded for the impact on existing tax positions following the adoption of the new tax measures, which took effect January 1, 2025. The $40 million core earnings adjustment consists of $20.5 million in core income tax for fiscal 2025 and a $19.5 million core earnings adjustment for an income tax gain recognized in 2025. In accordance with IFRS, specifically IAS 12 Income Taxes , this adjustment is recognized in the period of legislative adoption and does not constitute a retroactive restatement or an adjustment to prior periods. The Company has revised its medium-term core effective tax rate †† outlook to a range of 21% to 23%, 17 with expectations for 2026 positioned toward the upper end of the range. This change reflects the tax policy directions outlined in the November 2025 federal budget, including the impact of Bill C-15. Business growth Sales and business retention contributed to the strong growth in net premiums, premium equivalents and deposits, which reached nearly $6.4 billion, a 10% increase compared to the same period last year. Total assets under management and assets under administration exceeded $346 billion, an increase of 31% over the last 12 months. In Canada, Individual Insurance sales were good, at $97 million, and the Company maintained its leading position in the market, with the number of policies sold 18 increasing by 5% year over year. Dealer Services and iA Auto and Home both recorded good sales growth compared to the first quarter of 2025. In the Individual Wealth Management segment, total gross sales reached a quarterly record of more than $3.7 billion and total net segregated and mutual fund inflows reached nearly $1.4 billion. The Company continued to rank first for both gross and net individual segregated fund sales. 19 In the U.S., Individual Insurance sales recorded a notable year-over-year increase and Dealer Services sales reflected lower vehicle sales across the industry. INSURANCE, CANADA WEALTH MANAGEMENT US OPERATIONS ASSETS UNDER MANAGEMENT AND ASSETS UNDER ADMINISTRATION Total assets under management and assets under administration amounted to more than $346 billion as at March 31, 2026, recording an increase of 31% over the last 12 months. This solid growth was mainly driven by the performance of financial markets, strong net fund inflows, particularly for segregated funds, and the addition of assets under administration from the RF Capital Group acquisition completed on October 31, 2025. The Company maintained its position as the Canadian leader in segregated fund assets under management. 20 NET PREMIUMS, PREMIUM EQUIVALENTS AND DEPOSITS Net premiums, premium equivalents and deposits amounted to nearly $6.4 billion in the first quarter, which is 10% higher than the same period last year. This performance was mainly driven by the results of Individual Wealth Management, with almost all other business units also delivering good growth. FINANCIAL POSITION The Company’s solvency ratio 21 was 134% as at March 31, 2026, comparable to 133% at the end of the previous quarter and 132% a year earlier. This result is well above the regulatory minimum ratio of 90%. The one-percentage-point increase during the quarter was driven by the favourable contribution of organic capital generation and by the positive impact of the 2026 AMF-revised CARLI guideline on excess capital recognition for property and casualty subsidiaries. These favourable items were partially offset by the impacts of share buybacks (NCIB) and macroeconomic variations. The Company’s financial leverage ratio †† was 16.4% as at March 31, 2026, which compares to 16.3% at the end of the previous quarter. Organic capital generation The Company organically generated $155 million in additional capital during the first quarter compared to $125 million for the same period in 2025. This solid result is in line with projections to meet the annual target of at least $700 million in 2026, 22 with organic generation typically strengthening from the second quarter onwards due to seasonality. Capital available for deployment As at March 31, 2026, the capital available for deployment was assessed at $1.2 billion, compared to $1.1 billion at the end of the previous quarter. Book value The book value per common share 23 was $78.90 as at March 31, 2026, compared to $79.24 as at December 31, 2025 and $74.62 as at March 31, 2025. During the last 12 months, it increased by 6%, reflecting higher retained earnings, partly offset by the impact of the share buybacks (NCIB) and dividend payments to common shareholders. Normal Course Issuer Bid (NCIB) During the first quarter, the Company repurchased and cancelled a total of 1,646,356 outstanding common shares for a total value of $261 million. From the beginning of the current NCIB and up to March 31, 2026, the Company repurchased and cancelled 2,053,331 shares, or 2.2% of the outstanding shares. On May 5, 2026, with the approval of the Toronto Stock Exchange and the Autorité des marchés financiers , the Board of Directors authorized the Company to amend its current normal course issuer bid in order to increase the maximum number of common shares that may be repurchased for cancellation thereunder from 4,607,178 common shares, representing approximately 5% of the Company’s 92,143,563 common shares issued and outstanding as at October 31, 2025, to 7,371,485 common shares, representing approximately 8% of the 92,035,190 common shares that constituted the Company’s public float as at October 31, 2025. No other terms of the normal course issuer bid have been amended. Dividend The Company paid a quarterly dividend of $0.9900 per share to common shareholders in the first quarter of 2026. The Board of Directors approved a quarterly dividend of $1.1000 per share payable during the second quarter of 2026, an increase of $0.11 per share or 11% compared to the dividend paid in the previous quarter. This dividend is payable on June 15, 2026 to the common shareholders of record as at May 15, 2026. The core dividend payout ratio †† was 30% in the first quarter, in the middle of the target range of 25% to 35%. 24 In addition, the Board of Directors approved a semi-annual dividend of $32.1750 per Non‑Cumulative 5-Year Rate Reset Class A Preferred Shares Series C. 25 This dividend is payable on June 30, 2026, to the preferred shareholders of record at the close of business on June 5, 2026. Dividend Reinvestment and Share Purchase Plan Registered common shareholders wishing to enrol in iA Financial Group’s Dividend Reinvestment and Share Purchase Plan (DRIP) so as to be eligible to reinvest the next dividend payable on June 15, 2026 must ensure that the duly completed form is delivered to Computershare no later than 4:00 p.m. on May 8, 2026. Enrolment information is provided on iA Financial Group’s website at ia.ca , under About iA , in the Investor Relations/Dividends section. Common shares issued under iA Financial Group’s DRIP will be purchased on the secondary market and no discount will be applicable. Advisory team joins iA Private Wealth from a major bank-owned brokerage firm On February 19, 2026, iA Financial Group announced that a distinguished advisory team managing over $1.5 billion in client assets had joined iA Private Wealth, significantly strengthening its presence in Western Canada. Formerly known as Miazga Koroluk, the team will now operate as First Growth Multi-Family Office, bringing considerable expertise and a solid client-focused reputation. This addition supports iA Financial Group’s growth strategy and underscores the strength of its wealth platform. Leadership appointment at Richardson Wealth On March 10, 2026, iA Financial Group announced the appointment of Julie Gallagher as President and Chief Executive Officer (CEO) of Richardson Wealth, effective immediately. A seasoned financial services leader, she will provide strategic direction and vision, drive growth and profitability, and continue to strengthen support for advisory teams. Outgoing CEO Dave Kelly will remain involved as Vice‑Chair until the end of June to help during the transition period and will continue to serve as a Board member thereafter. Credit ratings During the first quarter, S&P Global and DBRS Morningstar confirmed all ratings for iA Financial Corporation and its related entities, including Industrial Alliance Insurance and Financial Services Inc., with a stable outlook. Recognition iA Financial Group ranked first among Canada’s largest publicly traded insurers in Forbes’ 2026 Best Employers list, reflecting strong employee feedback and a solid workplace culture. In 2025, Forbes also named the Company as Canada’s best auto insurance provider. Philanthropy On January 21, 2026, iA Financial Group announced a $200,000 donation to the Fondation IUCPQ to support the launch of HARMONY, a research project aiming to transform obesity management by combining medical treatment, nutrition and physical activity. On March 19, 2026, iA Financial Group announced a $1 million donation to SickKids Foundation, distributed over the next ten years, to support the SickKids AI (SKAI) program focused on advancing responsible artificial intelligence in pediatric health care. Subsequent to the first quarter: Life Insurance Digital Transformation – On April 8, 2026, iA Financial Group announced a key milestone in the modernization of individual life insurance in Canada with the integration of term and permanent life insurance sales into its enhanced digital experience. Approximately 50% of new life insurance sales are now completed through a fully digital end‑to‑end process, simplifying iA Financial Group’s operations, improving productivity, and delivering a smoother human‑digital experience for advisors and clients. NON-IFRS AND ADDITIONAL FINANCIAL MEASURES iA Financial Corporation reports its financial results and statements in accordance with IFRS ® Accounting Standards. The Company also publishes certain financial measures or ratios that are not presented in accordance with IFRS. The Company uses non-IFRS and other financial measures when evaluating its results and measuring its performance. The Company believes that such measures provide additional information to better understand its financial results and assess its growth and earnings potential, and that they facilitate comparison of the quarterly and full year results of the Company’s ongoing operations. Since such non-IFRS and other financial measures do not have standardized definitions and meaning, they may differ from similar measures used by other institutions and should not be viewed as an alternative to measures of financial performance, financial position or cash flow determined in accordance with IFRS. The Company strongly encourages investors to review its financial statements and other publicly filed reports in their entirety and not to rely on any single financial measure. Non-IFRS financial measures include core earnings (losses). Non-IFRS ratios include core earnings per common share (core EPS); core return on common shareholders’ equity (core ROE); core effective tax rate; core dividend payout ratio; and financial leverage ratio. Supplementary financial measures include return on common shareholders’ equity (ROE); components of the CSM movement analysis (organic CSM movement, impact of new insurance business, organic financial growth, insurance experience gains (losses), impact of changes in assumptions and management actions, impact of markets, currency impact); components of the drivers of earnings (in respect of both net income attributed to common shareholders and core earnings); assets under management; assets under administration; capital available for deployment; dividend payout ratio; total payout ratio (trailing 12 months); organic capital generation (net of dividends); sales; net premiums; and premium equivalents and deposits. For relevant information about non-IFRS measures, see the "Non-IFRS and Additional Financial Measures" section in the Management’s Discussion and Analysis (MD&A) for the period ending March 31, 2026, which is hereby incorporated by reference and is available for review on SEDAR+ at sedarplus.ca or on iA Financial Group’s website at ia.ca . A reconciliation of net income attributed to common shareholders to core earnings by business segment is included below. For a reconciliation on a consolidated basis, see the "Reconciliation of Net Income Attributed to Common Shareholders and Core Earnings" section above. Reconciliation of Select Non-IFRS Financial Measures Net Income and Core Earnings † Reconciliation – Insurance, Canada Net Income and Core Earnings † Reconciliation – Wealth Management Net Income and Core Earnings † Reconciliation – US Operations Net Income and Core Earnings † Reconciliation – Investment Net Income and Core Earnings † Reconciliation – Corporate Reconciliation of Core Earnings † to Net Income Attributed to Common Shareholders According to the DOE – Consolidated 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", "plan", "believe", "estimate", and "continue" (or the negative thereof), as well as words such as "financial targets", "objective", "goal", "guidance", "outlook" and "forecast", or other similar words or expressions. Such statements constitute forward-looking statements within the meaning of securities laws. In this document, forward-looking statements include, but are not limited to, information concerning possible or future operating results, strategies, and financial and operational outlooks. These statements are not historical facts; they represent only expectations, estimates and projections regarding future events and are subject to change. Although iA Financial Group believes that the expectations reflected in such forward-looking statements are reasonable, such statements involve risks and uncertainties, and undue reliance should not be placed on such statements. In addition, certain material factors or assumptions are applied in making forward-looking statements, and actual results may differ materially from those expressed or implied in such statements. Ongoing geopolitical tensions, including war in Ukraine and the Middle East, and escalating trade tensions between the U.S. and Canada, including tariffs, continue to disrupt supply chains and raise costs, contributing to economic uncertainty. Global equity markets could face increased volatility due to ongoing tariff risks, evolving interest rate expectations and general uncertainty. These factors may reduce consumer and investor confidence, increase financial instability and constrain growth prospects . Additional information about the material factors that could cause actual results to differ materially from expectations and about material factors or assumptions applied in making forward-looking statements may be found in the "Risk Management" section of the Management’s Discussion and Analysis for 2025, the "Management of Financial Risks Associated with Financial Instruments and Insurance Contracts" note to the audited consolidated financial statements for the year ended December 31, 2025, and elsewhere in iA Financial Group’s filings with the Canadian Securities Administrators, which are available for review at sedarplus.ca. The forward-looking statements and outlooks in this document reflect iA Financial Group’s expectations as of the date of this document. iA Financial Group does not undertake to update or release any revisions to these forward‑looking statements to reflect events or circumstances after the date of this document or to reflect the occurrence of unanticipated events, except as required by law. Forward-looking statements are presented in this document for the purpose of assisting investors and others in understanding certain key elements of the Company’s expected financial results, as well as the Company’s objectives, strategic priorities and business outlook, and in obtaining a better understanding of the Company’s anticipated operating environment. Readers are cautioned that such information may not be appropriate for other purposes. GENERAL INFORMATION Documents Related to the Financial Results For a detailed discussion of iA Financial Group’s first quarter results, investors are invited to consult the Management’s Discussion and Analysis for the quarter ended March 31, 2026, the related financial statements and accompanying notes and the Supplemental Information Package, all of which are available on the iA Financial Group website at ia.ca under About iA, in the Investor Relations/Financial Reports section. The Management's Discussion and Analysis and the Company’s financial statements are also available on SEDAR+ at sedarplus.ca . CONFERENCE CALL Management will hold a conference call to present iA Financial Group’s first quarter results on Wednesday, May 6, 2026 at 9:30 a.m. (ET). To listen to the conference call, choose one of the options below: The conference call will be recorded and the replay will be available on the iA Financial Group website at ia.ca , under About iA/Investor Relations/Financial Reports. ANNUAL MEETING iA Financial Corporation is holding its Annual Meeting in hybrid format at 2:00 p.m. (ET) on Thursday, May 7, 2026, in person and online at the following web address: https://www.icastpro.ca/fia260507 . A webcast of the meeting as well as a copy of management’s presentation will be available on the Company’s website at ia.ca under About iA , in the Investor Relations/Events and Presentations section. ABOUT iA FINANCIAL GROUP iA Financial Group is one of the largest insurance and wealth management groups in Canada, with operations in the United States. Founded in 1892, it is an important Canadian public company and is listed on the Toronto Stock Exchange under the ticker symbol IAG (common shares). ia.ca iA Financial Group is a business name and trademark of iA Financial Corporation Inc.   View source version on businesswire.com: https://www.businesswire.com/news/home/20260505685245/en/ Contacts Investor Relations Caroline Drouin Office: 418-684-5000, ext. 103281 Email: [email protected] Public Affairs Chantal Corbeil Office: 514-247-0465 Email: [email protected]

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