iA Financial Group Reports Second Quarter Results and a 10% Increase in Its Common Dividend

Executive Summary

• iA Financial Group reported strong second-quarter 2025 financial results, with core diluted EPS increasing 27% year-over-year to $3.49 and net income attributed to common shareholders rising 56% to $321 million.
• The company announced a 10% increase in its quarterly common share dividend to $0.99 per share and disclosed the acquisition of RF Capital Group Inc. for $597 million to expand its wealth distribution presence.
• Total assets under management and administration reached $274 billion (up 16% YoY), while organic capital generation hit $200 million for the quarter, putting the company on track to exceed its $650 million annual target.

Key Details

• Financial Performance (Q2 2025):
  • Core diluted EPS: $3.49 (+27% YoY).
  • Net income attributed to common shareholders: $321 million (+56% YoY).
  • Trailing-12-month Core ROE: 17.0% (in line with 2027 target).
  • Trailing-12-month ROE: 14.7%.
  • Solvency ratio: 138% at June 30, 2025.
  • Book value per common share: $76.02 (+9% YoY).
• Capital and Dividends:
  • Quarterly dividend increased by 10% to $0.9900 per share (payable in Q3 2025).
  • Organic capital generation: $200 million in Q2; $325 million year-to-date (target: $650M+ for 2025).
  • Capital available for deployment: $1.5 billion at June 30, 2025.
  • Preferred Share Issuance: Closed offering of 6.435% Non-Cumulative 5-Year Rate Reset Class A Preferred Shares Series C for $400 million gross proceeds on June 23, 2025.
  • Share Buybacks: Repurchased and cancelled 535,400 common shares for $73 million under the NCIB program in Q2.
• M&A Activity:
  • RF Capital Group Acquisition: Announced on July 28, 2025, iA will acquire RF Capital for $20.00 per share in cash, totaling $597 million.
  • Impact: Expected to add >$40 billion in AUA, expand high-net-worth presence, be neutral to core EPS in Year 1, and accretive by at least $0.15 in Year 2.
  • Pro Forma Impact: Estimated solvency ratio of 132% and capital available for deployment of $0.9 billion post-acquisition.
• Operational Highlights:
  • AUM/AUA: Total AUM and AUA reached $274 billion (+16% YoY).
  • Sales Momentum: Net premiums, premium equivalents, and deposits totaled ~$5.1 billion (+4% YoY).
  • Insurance, Canada: Core earnings of $133 million (+25% YoY); Individual Insurance sales of $103 million (+5% YoY); Dealer Services sales of $225 million (+16% YoY).
  • Wealth Management: Core earnings of $113 million (+15% YoY); Net segregated fund sales of $670 million; Ranked #1 in Canada for gross and net segregated fund sales.
  • US Operations: Core earnings of $36 million (+64% YoY); Individual Insurance sales reached a record US$78 million (+59% YoY); Dealer Services sales of US$296 million (+6% YoY).
  • Investment Segment: Core earnings of $102 million (+12% YoY); Core net investment result of $127 million.
  • Corporate: Core losses of $57 million; included $14 million charge related to pension plan surplus allocation.

Notable Quotes

• “We are proud of our very strong second-quarter results, which reflect the effectiveness of our diversified business model and the disciplined execution of our growth strategy across all of our operating segments,” commented Denis Ricard, President and CEO of iA Financial Group.
• “Our financial results reflect strong profitability, driven by significant experience gains across several business units... The strong earnings we delivered this quarter translated into record quarterly organic capital generation of $200 million, further strengthening our capital position and giving us the flexibility to pursue strategic growth opportunities,” added Éric Jobin, Executive Vice-President, CFO, and Chief Actuary.