iA Financial (TSE:IAG) executives highlighted what they described as a strong finish to 2025, pointing to record sales in several areas, improved profitability in key segments, and a capital position they said gives the company flexibility heading into 2026. Management also addressed items that weighed on quarterly results, including a lapse assumption update tied to a Canadian term product and unfavorable group insurance experience in a special market portfolio.
Full-year performance and fourth-quarter snapshot
President and CEO Denis Ricard characterized the fourth quarter as “a good quarter” that capped “an excellent year,” stating the company met or exceeded key financial targets in 2025. He reported a Core ROE of 17.1% and 16% growth in Core EPS for the year, which he said were aligned with iA’s midterm objectives.
For the fourth quarter, Ricard reported Core EPS of CAD 3.10 and said the trailing 12-month Core ROE of 17.1% already meets iA’s midterm target. He added that net premiums and deposits were CAD 5.9 billion, up 4%, and assets under management and administration exceeded CAD 341 billion, up 31%, driven by segregated fund inflows, market conditions, and the addition of RF Capital assets.
Management said capital remained robust, citing a year-end solvency ratio of 133% and 137% on a pro forma basis. Ricard also said book value per share rose to CAD 79.24, up 8% year-over-year (or more than 10% excluding the impact of NCIB activity).
Canada insurance: record individual insurance sales, but experience headwinds
Ricard said the Insurance, Canada segment delivered broad-based growth, led by record individual insurance sales of CAD 111 million in the quarter, supported by distribution strength, digital tools, and advisor engagement. He also said iA continues to rank first in Canada for number of policies issued.
Other Canada insurance highlights provided on the call included:
- Group insurance: premiums and deposits up 2% year-over-year; fourth-quarter sales up 15% from last year.
- Dealer Services (Canada): sales up 4% to CAD 183 million.
- iA Auto & Home: sales up 9% to CAD 146 million, reflecting policy count growth and pricing adjustments.
Chief Financial Officer and Chief Actuary Éric Jobin said fourth-quarter core earnings in Insurance, Canada were CAD 105 million, down from CAD 116 million a year earlier. He attributed the year-over-year change partly to a swing in insurance experience, noting the prior-year quarter included a CAD 15 million core insurance experience gain while the fourth quarter of 2025 included a CAD 4 million core insurance experience loss. Jobin said the variance reflected normalization of P&C experience at iA Auto & Home and unfavorable morbidity experience in the special market this quarter.
Wealth management: strong inflows and RF Capital contribution
On the wealth side, Ricard pointed to “very strong” business activity in the quarter, including record individual growth sales of CAD 3.1 billion.
He said segregated fund growth sales were nearly CAD 2 billion, up 27% year-over-year, with net sales almost CAD 1.2 billion. Mutual fund growth sales were CAD 694 million, up 16%, with net sales of CAD 13 million. Sales of other individual savings products were CAD 429 million, roughly in line with last year. Group savings and retirement sales were CAD 851 million, which management said was lower than the prior year because 2024 included a nearly CAD 1 billion insured annuities transaction; group savings AUM was said to be 11% higher year-over-year.
Jobin reported Wealth Management core earnings of CAD 127 million in the quarter, up 13% year-over-year, driven primarily by higher combined risk adjustment release and CSM recognized for services provided, reflecting strong net segregated fund sales and market performance over the last 12 months. He added that RF Capital’s contribution was “already accretive and performing ahead of expectation,” though partly offset by lower net interest income and non-recurring expenses in other distribution and advisory affiliates.
In the Q&A, management attributed RF Capital’s early accretion to advisor retention and market performance, and said integration synergies were progressing quickly. Wealth head Stephan Bourbonnais said the earlier-than-expected closing date provided a head start on integration roadmaps and enabled cost savings from no longer operating as a public company, along with leadership realignment, corporate function harmonization, and vendor contract reviews. Jobin said the company was not disclosing retention metrics, but described outcomes as “really, really good” versus expectations.
U.S. operations and dealer services
Ricard said U.S. operations performed “very well” again in the quarter. He reported U.S. individual insurance sales up 18% year-over-year to $80 million, citing momentum in final expense and middle market segments and a meaningful contribution from Vericity. Dealer Services sales in the U.S. were up 8% to $295 million, which management linked to distribution relationships, a diversified offering, and actions focused on service quality and disciplined pricing.
Jobin said U.S. operations core earnings were $30 million, up 15% year-over-year, reflecting stronger risk adjustment release and CSM recognized for services, along with lower core other expenses, partially offset by insurance experience losses tied to unfavorable lapses. He added that Dealer Services’ sales mix skewed more toward insurance products, where earnings emerge gradually, and said eFinancial performed as expected.
Assumptions, expenses, and 2026 outlook
Jobin said corporate segment core other expenses totaled CAD 87 million pre-tax in the quarter, including CAD 74 million near the upper end of the quarterly target range, plus a CAD 13 million higher-than-expected variable compensation provision that reflected the company’s strong 2025 performance. The company updated its quarterly target range for core other expenses to CAD 70 million ± CAD 5 million for 2026, up from CAD 68 million ± CAD 5 million in 2025, citing inflation while maintaining an efficiency focus.
On the year-end assumption review and management actions, Jobin reported a positive net economic impact of CAD 10 million and said the total impact included both an immediate earnings effect and increases in CSM and risk adjustment, shifting profit recognition timing in a way that was “positive for future periods.”
During Q&A, Jobin said iA increased lapse assumptions on a Canadian term product sold for about 10 years, after monitoring post-pandemic behavior and concluding the lapse pattern was permanent; he said it was not connected to the U.S. lapse experience and noted it was not a lapse-supported product. Management also discussed unfavorable group experience tied to a portfolio covering foreign students, citing federal limits on permits that reduced premium volume and affected claims; Jobin said reserves were strengthened to address expected losses through renewal, which management said is expected in September 2026.
Looking ahead, Ricard said the company expects to achieve a Core ROE of at least 17% again in 2026 and more than CAD 700 million in organic capital generation. He also said iA had CAD 1.4 billion in capital available for deployment on a pro forma basis, supporting growth, potential acquisitions, and continued investment in digital capabilities.
About iA Financial (TSE:IAG)
iA Financial Corp Inc is a life and health insurance company. It offers life and health insurance products, savings and retirement plans, mutual funds, securities, auto and home insurance, mortgages, and others. The company operates and manages its activities according to five main reportable operating segments Individual Insurance, Individual Wealth Management, Group Insurance, Group Savings and Retirement, and US Operations.
