iA Financial (IAG) Q1 2025 earnings summary

Executive summary

• Achieved core EPS of CAD 2.91, up 19% year-over-year, and core ROE of 16.1%; reported EPS was CAD 1.98 and ROE 13.0%.

• Net income attributed to common shareholders was CAD 186 million, down 20% year-over-year, due to market-related impacts.

• Sales momentum continued in Canada and the U.S., with double-digit growth in premiums, deposits, and assets under management for the fourth consecutive quarter.

• Assets under management and administration rose 15% year-over-year to over CAD 264 billion.

• Robust capital position maintained, with a solvency ratio of 132% and CAD 1.4 billion in deployable capital as of March 31, 2025.

Financial highlights

• Core earnings were CAD 273 million, up 12% year-over-year; net income attributed to common shareholders was CAD 186 million, down 20%.

• Book value per share increased 8% year-over-year to CAD 74.62.

• Organic capital generation reached CAD 125 million in Q1, on track for the annual target of CAD 650+ million.

• Dividend payout ratio was 45%, with a quarterly dividend of CAD 0.90 per share.

• Financial leverage ratio improved to 14.8%, up 50 bps year-over-year.

Outlook and guidance

• Confident in achieving midterm targets: core EPS growth of 10%+ annually and core ROE of 17%+ by 2027.

• Expect Vericity acquisition to become earnings accretive in the second half of 2025.

• Anticipate continued strong sales and growth, with a focus on organic expansion and selective acquisitions.

• Core dividend payout ratio targeted at 25–35% of core earnings; Q1 payout was 31%.

• On track for $650M+ organic capital generation in 2025.