iA Financial Corporation has declined for the third consecutive quarter.
The insurer reported net income attributable to common shareholders of $215 million in the third quarter of 2022, compared with $217 million in Q3 2021. This amounts to a decrease of 0.9 per cent or $2 million.
Results by sector
Three of the five iA segments declined:
- Group Insurance: Net income attributable to common shareholders was $9 million in Q3 2022, versus $26 million in Q3 2021, for a decrease of 65.4 per cent or $17 million.
- Individual Wealth Management: Net income attributable to common shareholders was $36 million in Q3 2022, compared with $62 million in Q3 2021, for a decrease of 41.9 per cent or $26 million.
- Individual Insurance: Net income attributable to common shareholders was $94 million in Q3 2022, versus $107 million in Q3 2021. The corresponding decrease is 12.1 per cent or $13 million.
One segment remained flat: Group Savings and Retirement. As it did in 2021, this segment reported net income attributable to common shareholders of $5 million in Q3 2022.
One segment has improved: U.S. Operations. It reported net income attributable to common shareholders of $71 million in Q3 2022, compared with $17 million in Q3 2021. This represents an increase of 317.6 per cent or $54 million.
iA Insurance
iA Insurance reported net income attributable to iA Financial Corporation, its sole common shareholder, of $245 million in the third quarter of 2022, compared with $216 million in Q3 2021. This result is an increase of 13.4 per cent or $29 million.
Premiums and deposits
iA reported premiums and deposits of $3.3 billion in the third quarter of 2022, compared with $4.1 billion in Q3 2021. The corresponding decline is 20.1 per cent or $824 million.
“The unfavourable variation was driven by both wealth sectors, where the industry as a whole is facing challenges amid a difficult macroeconomic environment. All other business lines recorded an increase in premiums and deposits in the third quarter compared to the same period last year," iA says.
More specifically, premiums and deposits decreased:
- 41 per cent or $330 million for Group Savings and Retirement, to $474 million; and
- 30 per cent or $605 million for Individual Wealth Management, to $1.4 billion.
Premiums and deposits increased:
- 12.3 per cent or $59 million for Group Insurance, to $537 million;
- 7.5 per cent or $19 million for U.S. Operations, to $271 million;
- 7.4 per cent or $32 million for Individual Insurance, to $465 million; and
- 0.9 per cent or $1 million for General Insurance, to reach $107 million.
Sales
In the third quarter of 2022, iA’s sales sagged by $914 million versus the same quarter in 2021. More specifically, they were down:
- 40.5 per cent or $328 million for Group Savings and Retirement, “due to the unfavourable macroeconomic context,” to $482 million;
- 30 per cent or $605 million for Individual Wealth Management, to $1.4 billion;
- 6.8 per cent or $28 million for the U.S. Operations, to $385 million.
They increased by:
- 36.8 per cent or $25 million for Individual Insurance, to $93 million. “This strong growth was driven in part by good performance from all networks and distributors, including strong sales from one large distributor, and by the increase in average premium per policy sold”;
- 5.1 per cent or $6 million for Property and Casualty Insurance, to $124 million;
- 4.4 per cent or $16 million for Group Insurance, to $383 million.
