iA Financial Group reported its fourth quarter and full year results for 2020 on Feb. 11, announcing that the firm’s net income attributed to common shareholders was flat year-over-year in the fourth quarter, coming in at $171.9-million, up slightly from $171.2-million in the fourth quarter of 2019.
The company lost ground during the 12-months ended Dec. 31, 2020, meanwhile, reporting net income of just $611.2-million, down 11 per cent from $687.4-million reported at the end of 2019.
Hedging program losses
iA says the decrease in net income was mainly due to losses generated by the company’s hedging program for segregated fund guarantees, which was negatively impacted by extreme market volatility during the year.
The company’s individual insurance line gained $11.2-million in the fourth quarter, while individual wealth management lost $11.2-million, group insurance lost $5.4-million, group savings and retirement lost $3.2-million and the company’s U.S. operations posted a loss of $8.9-million. iA Insurance’s net income, attributed to its sole common shareholder, iA Financial Corporation, was $182.4-million, up from $174.8-million in the fourth quarter of 2019.
Assets under management totalled $197.5-billion at the end of the fourth quarter in 2020, up four per cent from a year earlier when the company had 189.5-billion in assets under management. iA’s solvency ratio was 130 per cent at Dec. 31, 2020, down from the 133 per cent reported at the end of 2019.
The company also announced that it is holding its quarterly dividend steady at $0.485 per share, in accordance with regulatory instructions to hold off on any dividend increases during the COVID-19 pandemic. Common share dividends will be payable on March 15, 2021 to shareholders of record at the close of business on February 26, 2021. Preferred share dividends ranging between $0.24 and $0.30 will be paid March 31, 2021 to shareholders of record on February 26, 2021.