iA Financial Group reports third-quarter net income of $165 million

By The IJ Staff | November 07 2018 01:30PM

Photo: Freepik

iA Financial Group has reported net income attributed to common shareholders of $164.9 million. This compares to $144.9 million for the same quarter last year – an increase of 14 per cent.

For the first nine months of the year, the company reported net income attributed to common shareholders of $463.2 million, up from $382.7 million for the same period of 2017. This is an increase of 21 per cent.

Return on shareholders’ equity for the last twelve months was 12.2 per cent. The company’s solvency ratio stood at 120 per cent, which is above its target range.

“Our results this quarter and indeed for the year to date show that the fundamentals of our business are solid,” said Denis Ricard, President and CEO of iA Financial Group in a statement issued Nov. 7. “All lines of business are focused on executing their business strategies while delivering on their commitments to EPS growth.”

iA also announced a share buyback program. “The Board of Directors and management team believe that the company's shares are an attractive investment opportunity at this time and repurchasing shares is an effective component of our capital allocation strategy,” said Ricard.

Retail insurance sector

The company’s retail insurance sector in Canada reported sales of $49.4 million, an increase of 6 per cent over the same quarter of 2017.

In retail wealth management, gross sales of segregated funds amounted to $464.4 million, an increase of 10 per cent. Net seg fund sales totalled $63.1 million, down from $113.3 million a year earlier. “These results reflect general market conditions and the current preference of consumers for guaranteed products,” says iA. The insurer also underlined that, according to the latest industry data, it continues to be ranked first for net seg fund sales in Canada and third position for assets.

Mutual fund sales

The company’s gross sales of mutual funds of $442.1 million were down from $461.8 million a year ago. Net outflows were $82.3 million compared with net inflows of $21.6 million a year earlier. “During the third quarter, the mutual fund industry in Canada was in net redemptions for the second quarter in a row,” pointed out the company.

The group insurance sector reported total sales of $241.4 million compared with $275.9 million for the same quarter of 2017.In the group wealth sector, total sales amounted to $323.3 million for an increase of five per cent over last year.