iA Financial Group reports positive third quarter results
iA Financial Corporation Inc. announced its third quarter results on Nov. 4, posting double digit year-over-year gains.
Net income attributed to common shareholders jumped 18 per cent year-over-year to $217.5-million, up from $183.7-million in the third quarter of 2019.
Diluted earnings per common share reached $2.03, exceeding $2.00 for the first time in the company’s history. Core earnings per common share were $1.83, up from $1.75 in the third quarter of 2019. Year-to-date net income however, dropped 15 per cent to $439.3-million compared to the $516.2-million year-to-date numbers reported in 2019.
iA Insurance, meanwhile recorded net income attributed to its sole common shareholder, iA Financial Corporation, of $222-million, up from $183.4-million a year earlier.
Significant top-line growth
The company says most of its business units saw significant top-line growth. Individual insurance sales were up 14 per cent in part thanks to the launch of a new participating whole life product, while favourable macroeconomic changes had a positive impact on universal life policies and on assets backing individual insurance reserves. The business added $12.8-million or $0.11 earnings per share.
Individual wealth management reported a gain of $3.5-million. The company says guaranteed product sales were up significantly for the quarter relative to last year’s figures, coming in at $208.2-million, a 29 per cent increase. Gross segregated fund sales meanwhile, totaled $724.9-million, a 26 per cent increase. Net sales were up significantly, at $375.9-million, compared to $167.8-million a year earlier.
Favourable long-term disability experience
Group insurance added $4-million as favourable long-term disability experience was offset by heath and dental insurance. Group savings and retirement, meanwhile, reported a gain of $2-million or $0.02 earnings per share. Total third quarter sales came to $1.18-billion, up from $446.5-million a year earlier. The company says the result was supported by the signing of several groups with sizable assets as well as a major insured annuity contract.
Overall, the company’s assets under management and administration reached $185.8-billion, up from $181-billion as of June 30, 2020, but down from $187.1-billion as of Sept. 30, 2019 and $189.5-billion reported as of Dec. 31, 2019.
iA Financial Corporation Inc. solvency ratio was 125 per cent at September 30, 2020, up from 124 per cent in June 2020, but down from 133 per cent and 134 per cent reported as of Dec. 31 and Sept. 30, 2019. iA Insurance solvency ratio was 124 per cent at Sept. 30, compared to 121 per cent at the end of the previous quarter and 126 per cent a year earlier.
Finally, the corporation’s board of directors approved a quarterly dividend of $0.485 per share, payable on Dec. 15, 2020 to shareholders of record as of Nov. 20, 2020.