iA Finance Corporation lost ground in early 2022.
The insurer reported net income attributable to common shareholders of $151 million in the first quarter of 2022, compared with $173 million in Q1 2021, for a decrease of 12.7 per cent or $22 million.
“While Q1 profitability did not meet our expectations, several fundamentals, such as our robust balance sheet, strong capital position and good organic capital generation, provide a stable foundation to pursue our growth strategy in an environment of macroeconomic variations and high inflation,” Jacques Potvin, Executive Vice President, Chief Financial Officer and Chief Actuary, iA Financial Group, said in releasing these results.
Results by sector
Three of iA’s five segments declined:
- Group Savings and Retirement reported net income attributable to common shareholders of $6 million in Q1 2022 versus $8 million in Q1 2021. The corresponding decrease is 25 per cent or $2 million;
- Individual Wealth Management reported net income attributable to common shareholders of $41 million in Q1 2022 compared with $51 million in Q1 2021. The decrease amounts to 19.6 per cent or $10 million;
- Individual Insurance recorded net income attributable to common shareholders of $70 million in Q1 2022, down from $81 million in Q1 2021. This is a decrease of 13.6 per cent or $11 million.
One segment was flat: Group Insurance. This segment reported net income attributable to common shareholders of $13 million in the first quarter of 2022, unchanged from the first quarter of 2021.
One segment has improved: U.S. Operations reported net income attributable to common shareholders of $21 million in Q1 2022 compared with $20 million in Q1 2021, for an increase of 5 per cent or $1 million.
iA Insurance
iA Insurance reported net income attributable to iA Financial, its sole common stockholder, of $154 million in the first quarter of 2022, compared with $171 million in Q1 2021. This amounts to a decrease of 9.9 per cent or $17 million.
Premiums and deposits
iA reports premiums and deposits of $4.4 billion in the first quarter of 2022, “similar to the record achieved for the same period in 2021,” iA notes. Aside from the decline of 0.2 per cent or $10 million, the insurer points out that “this result is attributable to the strong contribution of all lines of business.”
Looking at the results in closer detail, premiums and deposits decreased by:
- 10 per cent or $69 million for Group Savings and Retirement, to $618 million;
- 4.6 per cent or $118 million for Individual Wealth Management, to $2.4 billion.
Premiums and deposits climbed:
- 17 per cent or $42 million for US Operations, to $289 million;
- 16.5 per cent or $71 million for Group Insurance, to $500 million;
- 13.6 per cent or $57 million for Individual Insurance, to $476 million;
- 7.6 per cent or $7 million for General Insurance, to $99 million.
Sales
In the first quarter of 2022, versus Q1 2021, iA's sales declined by $107 million. Specifically, they decreased by:
- 9.8 per cent or $68 million for Group Savings and Retirement, to $625 million;
- 4.6 per cent or $118 million for Individual Wealth Management, to $2.4 billion.
They rose by:
- 74.1 per cent or $43 million for Individual Insurance, to $101 million;
- 4.9 per cent or $18 million for Group Insurance, to $383 million;
- 4.8 per cent or $4 million for Auto and Home, to $88 million;
- 4.2 per cent or $14 million for the US Operations, to $349 million.
“Our sales, most notably in individual insurance and segregated funds, have been strong since the beginning of the year, building on the momentum of 2021. Partly due to the success of our participating products, we continue to increase the proportion of capital-light products, which accounted for more than 85 per cent of new individual insurance sales in the first quarter,” commented Denis Ricard, President and CEO of iA Financial Group.
