iA Financial Corporation has passed the $200 million mark in reported second quarter earnings.
The company, which includes iA Insurance, reports net income attributable to common shareholders of $231 million in the second quarter of 2021.
This is up 26 per cent or $48 million from Q2 2020, when iA reported earnings of $183 million.
“We had very strong earnings in the second quarter, with core EPS up 34% year over year,” says Jacques Potvin, Executive Vice-president, CFO and Chief Actuary.
“In addition to favourable market-related experience, this strong performance was driven by solid policyholder experience gains from almost all of our business units, including both dealer services divisions (Canada and the U.S.), iA Auto and Home, individual wealth management and individual insurance,” he explains.
Three sectors advance, two retreat
Looking at the results in detail, net income attributable to common shareholders for two segments declined in the second quarter of 2021, compared with the same period in 2020:
- Group Insurance: Earnings of $26 million, down 13 per cent or $4 million;
- Group Savings and Retirement: Earnings of $7 million, down 42 per cent or $5 million.
The other three sectors did better:
- Individual Insurance: Earnings of $111 million, up 16 per cent or $15 million;
- Individual Wealth Management: Earnings of $60 million, up 62 per cent or $23 million;
- U.S. Operations: Earnings of $27 million, up 237.5 per cent or $19 million.
iA Insurance also vigorous
iA Insurance reported net income attributable to iA Financial Corporation, its sole common shareholder, of $232 million in the second quarter of 2021, compared with $193 million in Q2 2020. This is an increase of 20 per cent or $39 million.
Premiums at a glance
iA reported $3.9 billion in premiums and deposits in the second quarter of 2021, up from $2.7 billion in Q2 2020. The increase amounts to 47 per cent or $1.3 billion.
“This strong growth was supported by all lines of business, particularly Individual Wealth Management and Group Savings and Retirement,” the corporation says.
Looking at the results in detail, premiums and deposits increased by:
- 87 per cent or $310 million for the Group Savings and Retirement segment, to reach $668 million
- 58 per cent or $736 million for the Individual Wealth Management segment, to reach $2 billion
- 35 per cent or $26 million for the property and casualty insurance sector, to reach $101 million
- 32 per cent or $59 million for the U.S. business segment, to reach $246 million
- 20 per cent or $77 million for the group insurance sector, to reach $471 million
- 13 per cent or $51 million for the individual insurance segment, to reach $445 million.
iA Financial Corporation’s sales grew in all segments in the second quarter of 2021:
- U.S. Business: Increase of 105 per cent or $203 million over the second quarter of 2020 to $396 million. Sales remained stable in individual insurance, but surged by 137 per cent in dealer services “due to the addition of IAS's sales, more pronounced synergies between IAS and DAC and resilient car sales during the second quarter”;
- Group Savings and Retirement: up 85 per cent or $310 million to $675 million. The growth was “mainly supported by accumulation product sales with the signing of several new groups with sizable assets during the quarter and, to a lesser extent, by very good insured annuity sales,” iA explains;
- Individual Wealth Management: Gross sales gained 58 per cent or $736 million to reach $2 billion;
- Group Insurance: Increase of 43 per cent or $112 million to $370 million;
- Individual Insurance: Growth of 38 per cent or $20 million to reach $73 million;
- Auto and Home insurance: Direct written premiums advanced by 11 per cent or $14 million to $139 million.