Before the markets opened on May 10, iA Financial Group reported net income to common shareholders of $270 million (M) for Q1 2023, which ended on March 31. This figure represents a record performance for a single quarter.

The company thus increased its dividend by 13 per cent “to reflect higher earning power under the new accounting standards.” As is the case for other insurers that have published their first quarter results, these are the first results that incorporate IFRS 17 accounting standards. 

The 2022 results have been recalculated due to the adoption of “IFRS Insurance Contracts” and the related “IFRS 9 Financial Instruments” overlay. The company states that the 2022 figures are not audited and could change. The company notes repeatedly that any comparison between 2023 and 2022 results should be made with caution.

According to Jacques Potvin, Executive Vice-president, CFO and Chief Actuary, this quarterly record is “achieved from a solid insurance service result and a 
strong net investment result.” Net income to common shareholders was $270 million in the first quarter of 2022 versus a loss of $25 million reported in Q1 2022. 

By sector 

Core earnings amounted to $217 million in Q1 2023, a 3 per cent increase from $210 million in the same quarter of 2022.

For the Canadian insurance business segment, which includes a wide range of life, health, auto and home insurance coverage, iA Financial Group reported earnings of $74 million in the first quarter, up 17 per cent from $63 million in Q1 2022. 

Earnings also grew in wealth management in Q1 2023 versus Q1 2022, at $65 million (+10 per cent), as well as in investment income, at $108 million (+29 per cent). 

In contrast, earnings declined on the U.S. business side, at $17 million in the first quarter of 2023, compared to $36 million reported in Q1 2022, equal to a 53 per cent slump. The US Dealers segment experienced lower sales, which dragged non-insurance activities, the May 10 release explains. 

The Corporate segment posted a loss of $47 million in Q1 2023, versus a loss of $32 million in the first quarter of 2022. This result is attributed to the accelerated digital transformation, enhanced employee experience and projects to comply with IFRS 17 and Quebec's Bill 25 on privacy. 

Chief actuary 

On the same day it released the quarterly financial statements, senior management announced the retirement of Jacques Potvin. Potvin will conclude his role as CFO and Chief Actuary with the disclosure of the Q2 results in August. 

Potvin will be succeeded by Éric Jobin, an actuary with over two decades’ experience at the insurer. 

“Jacques has been with iA for the last 33 years, occupying roles of increasing responsibility. In his various roles, he developed strong and authentic connections with his collaborators and had a positive, lasting effect on their professional development”, says President and CEO Denis Ricard. “I want to personally thank him for his vast contribution to our company's success, and for the depth of his commitment to our ambitions.”