iA Financial (IAG) Q2 2024 earnings summary

Executive summary

• Achieved record core EPS of $2.75, up 15% year-over-year, and trailing 12-month core ROE of 15%, meeting medium-term targets.

• Strong business growth in Canada and the US, with premiums and deposits up 15% and assets under management and administration up 12% to $235.4B.

• Robust capital position with a solvency ratio of 141%, well above the 120% target, and $1.1B in capital available for deployment.

• Significant capital deployment through $287M in share buybacks and acquisitions in U.S. insurance and Canadian wealth management.

• Focus on operational efficiency, diversified distribution, and disciplined capital deployment, including a $0.82 Q3 dividend.

Financial highlights

• Core EPS increased by 15% year-over-year to $2.75; core earnings rose 8% to $267M; net income to common shareholders was $206M, up 5%.

• Book value per share reached $69.92 as of June 30, up over 9% year-over-year, excluding share buybacks.

• Assets under management and administration totaled $235.4B, up 12% year-over-year.

• Organic capital generation was $175M in Q2, on track to exceed the $600M+ annual target.

• Solvency ratio at 141% as of June 30, 2024.

Outlook and guidance

• Medium-term targets: core EPS growth of 10%+ annually, core ROE of 15%+, and solvency ratio above 120%.

• Dividend payout ratio maintained within the 25–35% target range, with ongoing share buybacks and steady dividend increases planned.

• Confident in continued value creation and profitability for the second half of 2024.

• Guidance subject to risks including market, credit, regulatory, and macroeconomic factors.