QUEBEC CITY, May 9, 2025 /CNW/ - iA Financial Group has made significant strides in its financial performance, reporting a 19% year-over-year increase in core earnings per share for the first quarter of 2025. This growth is attributed to strong sales in both Canada and the US, reflecting the company's robust business segments.
For the quarter that ended on March 31, 2025, iA Financial Group reported core diluted earnings per share of CA$2.91, a notable increase from CA$2.44 a year earlier. The company also saw its annualized core return on equity reach 15.8%, while the trailing 12-month figure stood at 16.1%. Total premiums and deposits rose to CA$5.8 billion, marking a 19% increase from the first quarter of 2024.
Assets under management and administration grew by 15% year-over-year, reaching CA$264 billion. The company’s solvency ratio was reported at 132%, with capital available for deployment standing at CA$1.4 billion. Additionally, the book value per common share rose to CA$74.62, representing a 2% increase from the previous quarter and an 8% rise from a year ago.
CEO Denis Ricard expressed optimism about the company’s future, stating, "We entered 2025 with continued momentum following our 2024 performance." He highlighted the steady results across business lines in both Canada and the US, noting growth in Canadian foundation businesses, which include individual insurance, dealer services, and segregated funds, as well as contributions from recent US acquisitions.
In the Canadian insurance segment, net income rose to CA$87 million from CA$83 million a year earlier. Core earnings increased to CA$100 million from CA$92 million, driven by higher expected insurance earnings and stronger results from non-insurance activities. The segment recorded a CA$4 million gain in insurance experience, as lower claims in auto and home insurance and improved morbidity in employee plans offset higher mortality rates.
Wealth management also reported positive figures, with net income climbing to CA$95 million, up from CA$88 million in the prior year. Core earnings in this segment rose to CA$106 million from CA$95 million, reflecting strong segregated fund sales, favorable market performance, and higher revenue from group savings and retirement products.
The company's US operations also saw an increase, with net income climbing to CA$19 million from CA$12 million. Core earnings for the segment reached CA$30 million, up from CA$19 million a year ago. This improvement was attributed to contributions from the Prosperity blocks of business and the Vericity acquisition, which added CA$8 million to insurance results.
However, not all segments performed equally. The investment segment saw net income drop to CA$35 million from CA$100 million during the quarter. Core earnings remained stable at CA$85 million, but market-related adjustments weighed on results, with losses in public and private equity and investment property valuations partially offset by gains from interest rate and credit spread changes.
The corporate segment reported a net loss of CA$50 million, consistent with the prior year. Core losses were CA$48 million, with pre-tax expenses of CA$65 million in line with quarterly guidance.
In addition to its financial results, iA Financial Group held its annual meeting on May 8, 2025, where Jacques Martin, Chair of the Board, announced the election of directors. The nominees listed in the Information Circular for the Solicitation of Proxies dated March 11, 2025, were elected as directors of iA Financial Corporation Inc. Voting results showed overwhelming support for the nominees, including William F. Chinery, who received 68,200,035 votes for (99.89%), and Benoit Daignault, who garnered 68,218,187 votes for (99.92%).
Other nominees also received significant backing, with Martin Gagnon and Alka Gautam each securing over 99% of the votes. The appointment of Deloitte LLP as iA Financial Corporation's external auditor was approved with 60,936,176 votes for (89.16%).
Additionally, the advisory resolution on iA Financial Corporation's approach to executive compensation was approved with 60,780,534 votes for (89.02%). However, several shareholder proposals were rejected, including an advisory vote on environmental policies, which received only 15,278,514 votes for (22.38%), and a proposal concerning directors' competencies regarding climate change, which garnered just 5,403,135 votes for (7.91%).
Final results for all matters voted on during the annual meeting will be submitted to Canadian securities administrators and will be available on sedarplus.ca.
As iA Financial Group continues to demonstrate strong performance and shareholder engagement, its focus on growth and sustainability remains a priority. The company’s ability to navigate challenges while capitalizing on opportunities in both Canadian and US markets positions it well for future success.