iA Financial (IAG) 23rd NBF Annual Financial Service Conference summary

Strategic objectives and earnings predictability

• Focus on reducing earnings volatility and improving predictability through enhanced ALM processes and operational efficiency initiatives.

• Interest rate sensitivity of core earnings reduced by about 60-65% in the first year of IFRS 17 implementation.

• Operational leverage implemented to control expense growth relative to revenue.

• U.S. Warranty Business undergoing realignment and leadership changes to improve performance.

U.S. business developments and integration

• U.S. segment targeted for ROE expansion, with focus on expense management, technology integration, and price adjustments.

• Recent acquisitions (Prosperity, Vericity) aimed at synergy, distribution enhancement, and capital efficiency.

• Vericity integration prioritized to maximize expected synergies before further integration with American Amicable.

• Costly reinsurance agreements being closed to support organic growth.

• No current hedging of U.S. net income due to growth mode and capital reinvestment needs.

Canadian business and product performance

• SEG Fund sales remain strong, supported by robust distribution, digital capabilities, and client service.

• Competition in SEG Funds not seen as a significant threat due to product guarantees and strong distribution relationships.

• P&C business benefited from mild weather and reduced auto theft, especially in Quebec.

• Continued focus on distribution outside Canada, maintaining current strategy.