iA Financial (IAG) Q4 2024 earnings summary

Executive summary

• Achieved record Q4 profitability with Core EPS of $3.04, up 30% year over year, and Core ROE of 16.9% annualized for the quarter.

• Net income attributed to common shareholders was $220M in Q4 (down 11% YoY) and $942M for 2024 (up 22% YoY).

• Core earnings for Q4 were $287M, up 22% year-over-year; full-year core earnings reached $1,074M, up 12%.

• Assets under management and administration surpassed $259.4B, up 18% year over year.

• Completed acquisition of Global Warranty, expanding presence in Canadian used vehicle warranty market.

Financial highlights

• Book value per share reached $73.44 as of December 31, a 10% year-over-year increase.

• Solvency ratio at 139%, well above the 120% operating target; pro forma solvency ratio at 133% after regulatory changes and acquisitions.

• Organic capital generation was $635M for 2024, meeting the $600M+ annual target.

• Q4 premiums and deposits exceeded $5.7B, a 39% YoY increase.

• Financial leverage ratio at 17.3% due to $400M subordinated debenture issuance.

Outlook and guidance

• Management is confident in the repeatability of 2024's strong results and aims to accelerate growth strategies in 2025.

• Exceeded all 2024 guidance: 20% core EPS growth, 15.9% core ROE, 139% solvency, $635M organic capital generation, 30% dividend payout ratio.

• New market guidance to be presented at Investor Event on February 24, 2025.

• Guidance for core tax rate is 21% ±1% going forward.

• Pro forma capital available for deployment projected at $1.4B, supporting future growth and acquisitions.