iA Financial Group’s posted fourth-quarter net income attributable to common shareholders of $248 million. This is an increase of 37 per cent compared with earnings for the same quarter of 2022, which stood at $181 million on an adjusted basis.
For the full year 2023, net income attributable to common shareholders was $769 million, compared with the $309 million reported in 2022 on an adjusted basis. This is an increase of 149 per cent.
The company points out that caution should be exercised when comparing results for 2023 with those of 2022, which were adjusted under IFRS 17 and IFRS 9.
Denis Ricard, President and CEO of IA Financial Group, stated that this performance testifies to "continued strong business growth, including for individual insurance in Canada and the United States."
Premiums and deposits
Premiums and deposits totalled $4.1 billion in the last quarter of 2023, up $88 million on the $4 billion reported in the fourth quarter of 2022 on an adjusted basis.
For the full year 2023, premiums and deposits totalled $16.6 billion, up 8 per cent over the $15.4 billion reported in 2022 on an adjusted basis.
By segment
For insurance operations in Canada, which include a broad range of life insurance as well as vehicle warranties and property & casualty auto and home insurance, iA Financial Group reported net income attributable to common shareholders of $43 million in the fourth quarter of 2023, compared with $23 million in the same quarter of 2022.
For the full year 2023, this insurance segment reported net income attributable to common shareholders of $274 million, compared with $238 million in 2022.
The Wealth Management segment includes savings and retirement solutions, and segregated funds. Net income attributable to common shareholders reached $85 million in the fourth quarter of 2023, compared with $66 million for the same period in 2022.
For the full year 2023, the Wealth Management segment reported net income attributable to common shareholders of $288 million, compared with $239 million in 2022.
In the US Operations business segment, which includes dealer-related vehicle warranty products, net loss attributable to common shareholders was $7 million in the fourth quarter of 2023, compared with net income of $14 million in the same quarter last year.
For the full year 2023, the US business segment reported net income attributable to common shareholders of $47 million, compared with the $99 million reported in fiscal 2022.
The Investments segment includes the company's investment and financing activities, except for the activities of wealth management distribution affiliates. Net income attributable to common shareholders amounted to $181 million in the fourth quarter, compared with $119 million in the same quarter of 2022.
For the full year 2023, the Investment segment reported net income attributable to common shareholders of $358 million, compared with a net loss of $90 million reported in 2022.
The Corporate segment reported a loss attributable to common shareholders of $54 million in the fourth quarter of 2023, compared with a loss of $41 million in the same quarter a year earlier.
For the full year 2023, the Corporate segment reported a loss attributable to common shareholders of $198 million, compared with $177 million in fiscal 2022.
Insurance results
For the full year 2023, income from insurance activities totalled $853 million, compared with $764 million a year earlier.
By business segment and for the full year, insurance results were as follows:
- Canadian insurance operations posted results of $442 million in 2023, compared with $392 million in 2022;
- Wealth Management posted earnings of $282 million in 2023, compared with $242 million in 2022;
- US Operations generated insurance income of $129 million in 2023, compared with $130 million in 2022.
Highlights
In highlights from its management report, the company stated that its total capital amounted to over $8.5 billion, with a solvency ratio of 145 per cent. Some $600 million in excess capital was generated in 2023, and the company expects similar growth in 2024.
The company also stated that its career network of 2,400 representatives performed very well in 2023, with life insurance products up 16 per cent and living benefits up 32 per cent over 2022.
Since Jan. 1, 2023, iA Auto Finance, whose figures were previously included in the Dealer Services business unit, has been part of the Investments business segment.
The Dealer Services segment, which comprises 4,000 establishments, distributes credit and property and casualty insurance products linked to the purchase and financing of a vehicle. This segment saw its sales increase by 12 per cent in 2023, to $686 million.
Direct premiums written by the iA Auto and Home insurance subsidiary climbed 14 per cent in 2023 to $519 million. The combined ratio stood at 97.3 per cent, compared with 94.9 per cent in 2022.
Other information
In its presentation to financial analysts, the company stated that assets under management increased by 11 per cent in 2023 compared with the previous year, reaching $218.9 billion on Dec. 31, 2023.
Book value per share reached $66.90 on Dec. 31, 2023, up 8 per cent over the previous year. This does not include share buybacks.
In the fourth quarter, nearly 2 million shares were repurchased at a cost of $171 million. For the full year, the company repurchased 5.4 million common shares for a total of $461 million in 2023.
With regard to its portfolio of commercial real estate investments, valued at $1.6 billion, iA points out that virtually all its properties are located in Canada, and that a large proportion of them are leased by public institutions. The occupancy rate is 87 per cent.
In the $1.4 billion mortgage portfolio, 89 per cent of loans are granted in Canada, and 68 per cent are insured. Some 83 per cent of these mortgages relate to multi-unit buildings.
