iA Financial (IAG) Q3 2024 earnings summary

Executive summary

• Achieved record Q3 2024 results with core EPS of $2.93 (up 17% YoY) and reported EPS of $2.99 (up 454% YoY), supported by robust sales in Canada and the US, and a solid capital position.

• Net income attributed to common shareholders rose 415% YoY to $283 million.

• Premiums and deposits increased 25% YoY, and total AUM/AUA grew 22% YoY to $249.7 billion.

• Book value per share reached $71.63, up 10% YoY.

• Dividend increased by 10% to $0.90 per share, and NCIB program renewed to buy back up to 5% of shares.

Financial highlights

• Solvency ratio at 140%, well above the 120% target, supported by organic capital generation of $180 million in Q3 and $485 million year-to-date.

• Core ROE at 15.3% (trailing 12 months), Q3 annualized core ROE at 16.6%.

• Book value per share rose 10% YoY to $71.63.

• Capital available for deployment at $1 billion, expected to rise by $700 million in 2025 due to regulatory changes.

• Total net premiums, premium equivalents, and deposits reached $4.94 billion, up 25% YoY.

Outlook and guidance

• Medium-term guidance targets 10%+ annual average core EPS growth, core ROE above 15%, and organic capital generation of $600 million+ in 2024.

• Capital available for deployment expected to increase by $700 million on January 1, 2025, under revised regulatory guidelines.

• Dividend payout ratio targeted at 25–35% of core earnings.

• Gradual profit improvement expected in U.S. Dealer Services over the next 12–24 months, driven by repricing and management actions.

• Confident in sustaining high ROE, with no unusual or unsustainable items identified in current results.