iA Financial Group Reports Fourth Quarter and Full Year 2025 Results

Executive Summary

• iA Financial Group reported fourth-quarter and full-year 2025 financial results, achieving all key annual targets ahead of schedule.
• Core diluted EPS for Q4 2025 was $3.10 (+2% YoY), and full-year core EPS was $12.96 (+16% YoY). Full-year net income attributed to common shareholders was $1,053 million (+12% YoY).
• The company achieved a core ROE of 17.1% for the trailing 12 months, beating its 17%+ target and bringing the timeline forward from 2027 to 2026.
• The acquisition of RF Capital Group closed on October 31, 2025, for $691 million, adding $43.6 billion in assets under administration and performing ahead of initial expectations.

Key Details

• Q4 2025 Financials:
  • Core diluted EPS: $3.10 (vs. $3.04 in Q4 2024).
  • Diluted EPS: $1.97 (vs. $2.33 in Q4 2024).
  • Net income attributed to common shareholders: $182 million (vs. $220 million in Q4 2024).
  • Core ROE (trailing 12 months): 17.1%.
  • ROE (trailing 12 months): 14.9%.
  • Solvency ratio: 133% (137% pro forma).
• Full Year 2025 Financials:
  • Core diluted EPS: $12.96 (+16% YoY).
  • Diluted EPS: $11.29 (+16% YoY).
  • Net income attributed to common shareholders: $1,053 million (+12% YoY).
  • Core earnings: $1,210 million (+13% YoY).
  • Organic capital generation: $665 million (exceeding the $650M+ target).
• Segment Performance (Q4 2025 Core Earnings):
  • Insurance, Canada: $105 million (-9% YoY).
  • Wealth Management: $127 million (+13% YoY).
  • US Operations: $30 million (+15% YoY).
  • Investment: $91 million (-11% YoY).
  • Corporate: $(66) million.
• Business Growth & Metrics:
  • Record Individual Insurance sales in Canada: $111 million in Q4 (+9% YoY).
  • Strong net fund inflows: $1.2 billion in Q4.
  • US Individual Insurance sales: $80 million in Q4 (+18% YoY).
  • Total Assets Under Management (AUM) and Administration: $341.1 billion (+31% YoY).
  • Net premiums, premium equivalents, and deposits: >$5.9 billion in Q4 (+4% YoY).
• Capital & Dividends:
  • Capital available for deployment: $1.1 billion ($1.4 billion pro forma).
  • Share buybacks: 687,475 shares repurchased for $115 million in Q4.
  • Dividend: $0.99 per share paid in Q4; $0.99 per share approved for Q1 2026.
  • Core dividend payout ratio: 32% in Q4.
• Acquisitions:
  • RF Capital Group acquired for $691 million (including final advisor retention costs).
  • Added 142 advisor teams and $43.6 billion in AUA (as of Sept 30, 2025).
• Regulatory & Strategic Updates:
  • Revised CARLI guideline effective Jan 1, 2026, positively impacting solvency ratio by 3.5 percentage points and capital available for deployment by $325 million.
  • Launch of EVO Insurance web platform.
  • Partnership with Empathy for bereavement support announced.
  • Warning issued regarding unsolicited mini-tender offer from Ocehan LLC.

Notable Quotes

• Denis Ricard, President and CEO: “Our strong and profitable growth across all business segments in the fourth quarter — including record individual insurance sales and very strong individual net fund inflows — reflects our continued success in the mass market and the trust we continue to earn from our clients and distribution networks... The recent addition of RF Capital, which is performing ahead of our initial expectations, further strengthens our strategic position in wealth management.”
• Éric Jobin, Executive Vice-President, CFO and Chief Actuary: “Our fourth quarter results continue to reflect the strength of our business fundamentals, supported by solid performance and disciplined execution throughout 2025, which enabled us to reach all of our key financial targets for the year... These strengths give us confidence in our ability to deliver a core ROE†† at or above 17% again in 2026.”