Robust capital position, continued strong
business growth and good profitability
The results presented
below are for iA Financial Corporation Inc. ("iA Financial
Corporation" or the "Company"), the holding company that owns 100%
of the common shares of Industrial Alliance Insurance and Financial
Services Inc. ("iA Insurance"). The results for iA Insurance are
presented in a separate section on page 7 of this
document.
This news release
presents non-IFRS measures used by the Company when evaluating its
results and measuring its performance. These non-IFRS measures are
not standardized financial measures and are not included in the
financial statements. For relevant information about non-IFRS
measures used in this document, see the "Non-IFRS and Additional
Financial Measures" section in the Management's Discussion and
Analysis for the period ended December 31, 2023, which is
hereby incorporated by reference, and is available for review
at sedarplus.ca or on iA Financial Group's website at
ia.ca.
|
FOURTH QUARTER HIGHLIGHTS – iA
Financial Corporation
- Core EPS† of $2.34 and
trailing-12-month core ROE† of 14.4%, aligned with
medium-term target of 15%+
- Reported EPS of $2.46 compared to
$1.71 in Q4 20221 and
trailing-12-month ROE† of 11.6%
- 7% increase in common dividend to $0.8200 per share, payable in Q1 2024
- Strong business growth, leading to solid 11% YoY increase in
assets (AUM and AUA)† and 8% YoY increase in premiums
and deposits
- Robust solvency ratio† of 145%, with organic capital
generation of $160M in Q4, and
$1.6B of deployable
capital† at December 31, 2023
- Book value per common share reaching $66.90 at December 31, 2023, up 8% over
12 months (excluding share buyback impact)
QUEBEC
CITY, Feb. 20, 2024 /CNW/ - For the fourth
quarter ended December 31,
2023, iA Financial Corporation (TSX: IAG) recorded core
diluted earnings per common share (EPS)† of
$2.34, compared to $2.40 in the fourth quarter of 2022.1
Core return on common shareholders' equity (ROE)† for
the trailing twelve months was 14.4%, aligned with the
Company's medium-term target of 15%+. On a reported basis, which
includes the impact of volatile items (primarily short-term
macroeconomic variations and the impact of assumption changes and
management actions), the result was higher than core earnings, with
quarterly net income attributed to common shareholders
of $248 million, EPS of $2.46 and ROE†
for the trailing twelve months of 11.6%. The solvency
ratio† of 145% at December 31, 2023 is
well above the Company's operating target of 120%.
"We concluded 2023 with very good performance in
almost all business units, both in sales and earnings. The solid
increase in assets under management and administration, as well as
in premiums and deposits, testifies to our continued strong
business growth, including for individual insurance in Canada and the U.S.," commented Denis Ricard, President and CEO of
iA Financial Group. "Looking ahead, our solid capital position
supports our growth ambition to create value towards our
medium-term core ROE target of 15%+, notably through organic
investment in our client-centric digital transformation. We look
forward to 2024 with confidence, and accordingly, today we are
pleased to announce a 7% dividend increase for our
shareholders."
"In view of our growth-oriented capital
deployment strategy, we are particularly proud to have achieved our
annual organic capital generation target, reflecting sustained
generation throughout the year and demonstrating the value created
by our operations," added Éric Jobin, Executive
Vice‑President, CFO and Chief Actuary. "Q4 and 2023 profitability
was supported, among other things, by favourable core insurance
experience, which was also recognized in the annual assumption
review process, resulting in a small global impact that attests to
the soundness of our long-term management approach."
Earnings Highlights
|
Fourth quarter
|
Year-to-date at
December 31
|
2023
|
20221
|
Variation
|
2023
|
20221
|
Variation
|
Net income attributed
to shareholders (in millions)
|
$256
|
$192
|
33 %
|
$789
|
$334
|
136 %
|
Less: dividends on
preferred shares issued by a subsidiary (in millions)
|
($8)
|
($11)
|
|
($20)
|
($25)
|
|
Net income attributed
to common shareholders (in millions)
|
$248
|
$181
|
37 %
|
$769
|
$309
|
149 %
|
Weighted average number
of common shares (in millions, diluted)
|
100.9
|
105.6
|
(4 %)
|
102.9
|
106.8
|
(4 %)
|
Earnings per common
share (diluted)
|
$2.46
|
$1.71
|
44 %
|
$7.48
|
$2.89
|
159 %
|
Core
earnings†
|
236
|
254
|
(7 %)
|
956
|
955
|
—
|
Core earnings per
common share (diluted)†
|
$2.34
|
$2.40
|
(3 %)
|
$9.31
|
$8.93
|
4 %
|
Other Financial Highlights
|
December 31, 2023
|
Sept. 30, 2023
|
December 31, 2022
|
Return on common
shareholders' equity†
|
11.6 %
|
10.6 %
|
4.7 %
|
Core return on common
shareholders' equity†
|
14.4 %
|
14.8 %
|
14.4 %
|
Solvency
ratio†
|
145 %
|
145 %
|
130 %
|
Book value per
share2
|
$66.90
|
$65.25
|
$63.00
|
Assets under management
and administration† (in
billions)
|
$218.9
|
$205.0
|
$197.4
|
__________
|
1
|
Caution should be used
when comparing 2023 results with 2022 restated results
under IFRS 17 and IFRS 9 (see the Note regarding 2022 restated
results on page 2). To ensure comparability with 2023 results,
Q3/2022 and Q4/2022 restated figures have been adjusted to reflect
IFRS 17 and IFRS 9 ongoing refinements in methodologies.
|
2
|
Book value per common
share is a financial measure calculated by dividing the common
shareholders' equity by the number of common shares outstanding at
the end of the period; all components of this measure are IFRS
measures.
|
|
|
†
|
This item is a non-IFRS measure; see the
"Non-IFRS and Additional Financial Measures" section in this
document for relevant information about such
measures.
|
Unless otherwise indicated, the results
presented in this document are in Canadian dollars and are compared
with those from the corresponding period last year.
Note regarding 2022 restated results – The
Company's 2022 annual results have been restated for the adoption
of IFRS 17 Insurance Contracts and the related IFRS 9
Financial Instruments overlay ("the new accounting
standards"). Additionally, the restated 2022 results are not
fully representative of the Company's future market risk profile
and future reported and core earnings profile, as the transition of
the Company's invested asset portfolio for asset/liability
management purposes under the new accounting standards was not
fully completed until 2023. Accordingly, analysis based
on 2022 comparative results may not be indicative of future
trends and should be interpreted within this context. For
additional information about risk management under the new
accounting standards, refer to the "Risk Management" section of the
Management's Discussion and Analysis as at December 31,
2023.
|
ANALYSIS OF EARNINGS
This section contains measures that have no
IFRS equivalents. See "Non-IFRS Financial Information" in the
Management's Discussion and Analysis as at
December 31, 2023 for more information and an explanation
of the adjustments applied in the Company's core
earnings† calculation.
Reported and core earnings
The Company recorded core earnings†
of $236 million in the fourth quarter of 2023, which
compares to the restated result under IFRS 17 and IFRS 9 of
$254 million for the same period in 2022.[3][4] Note that the
result for the fourth quarter of 2022
includes $22 million (post-tax) of mostly unusual gains
due to adjustments related to the restatement of 2022
results.3,4 Core diluted earnings per common share
(EPS)† of $2.34 in the
fourth quarter compares to $2.40 (or
$2.18 excluding the previously
mentioned unusual gain) during the same quarter
of 2022.3,4 Core return on common shareholders'
equity (ROE)† for 2023 was 14.4%, which is aligned with
the Company's medium‑term target of 15%+. Core earnings is a
non-IFRS measure that represents management's view of the Company's
ongoing capacity to generate earnings.
On a reported basis, which includes the impact of
volatile items (primarily short-term macroeconomic variations and
the impact of assumption changes and management actions), fourth
quarter net income attributed to common shareholders was
$248 million, compared with $181 million in the fourth
quarter of 2022.3 EPS was $2.46 and ROE for 2023 was 11.6%.
An analysis of these results is presented in the
following sections.
Earnings
|
|
(In millions of
dollars, unless otherwise indicated)
|
Fourth quarter
|
Year-to-date at
December 31
|
2023
|
20223
|
Variation
|
2023
|
20223
|
Variation
|
Net income to common
shareholders
|
248
|
181
|
37 %
|
769
|
309
|
149 %
|
Earnings per common
share (EPS) (diluted)
|
$2.46
|
$1.71
|
44 %
|
$7.48
|
$2.89
|
159 %
|
Core
earnings4
|
236
|
254
|
(7 %)
|
956
|
955
|
—
|
Core EPS4
(diluted)
|
$2.34
|
$2.40
|
(3 %)
|
$9.31
|
$8.93
|
4 %
|
Return on common
shareholders' equity (ROE)†,
|
December 31, 2023
|
September 30, 2023
|
December 31, 2022
|
Reported ROE (trailing
twelve months)
|
11.6 %
|
10.6 %
|
4.7 %
|
Core ROE†
(trailing twelve months)
|
14.4 %
|
14.8 %
|
14.4 %
|
__________
|
3
|
Caution should be used
when comparing 2023 results with 2022 restated results under IFRS
17 and IFRS 9 (see the Note regarding 2022 restated results on page
2).
|
4
|
To ensure comparability
with 2023 results, Q3/2022 and Q4/2022 restated figures have been
adjusted to reflect IFRS 17 and IFRS 9 ongoing refinements in
methodologies.
|
|
|
†
|
This item is a non-IFRS
measure; see the "Non-IFRS and Additional Financial Measures"
section in this document for relevant information about such
measures.
|
Reported earnings and core earnings
reconciliation
The following table presents the adjustments that
account for the $12 million
difference between the net income to common shareholders of
$248 million and core earnings of
$236 million. These adjustments are
divided into the following six categories:
- The favourable market-related impacts totalling $89 million. More specifically, returns were more
favourable relative to management's expectations for equity market
(+$93 million) and interest rate and credit spreads (+$30 million),
while investment property adjustments totalled -$24 million and the impact of the tax-exempt
investment income from the Company's multinational insurer status
(CIF) was below expectations (-$10
million).5
- The year-end assumption review and management actions which
totalled a charge of $56 million (see
below for more details).
- The impact of acquisition-related intangible assets of
$17 million.
- $4 million for the costs related to the Vericity
acquisition and the charge for the Surex minority shareholders'
sell option.
- The impact of non-core pension expense of $2 million.
- $2 million for other non-core
items, namely an unusual income tax gain, which was mostly offset
by operational efficiency initiatives and unusual legal
expenses.
Reported earnings and core
earnings reconciliation
|
|
(In millions of
dollars, unless otherwise indicated)
|
Fourth quarter
|
Year-to-date at
December 31
|
2023
|
20226
|
Variation
|
2023
|
20226
|
Variation
|
Net income to common
shareholders
|
248
|
181
|
37 %
|
769
|
309
|
149 %
|
Core earnings adjustments (post
tax)
|
|
|
|
|
|
|
Market-related
impacts7
|
(89)
|
11
|
|
82
|
428
|
|
Assumption changes and
management actions
|
56
|
34
|
|
13
|
107
|
|
Charges or proceeds
related to acquisition or disposition of a business,
including acquisition,
integration and restructuring costs
|
4
|
6
|
|
10
|
18
|
|
Amortization of
acquisition-related finite life intangible assets
|
17
|
17
|
|
66
|
64
|
|
Non-core pension
expense
|
2
|
5
|
|
8
|
21
|
|
Other specified
unusual gains and losses
|
(2)
|
0
|
|
8
|
8
|
|
Total
|
(12)
|
73
|
|
187
|
646
|
|
Core earnings7
|
236
|
254
|
(7 %)
|
956
|
955
|
—
|
Core earnings by business segment
The fourth quarter core earnings result of
$236 million is described in the
following paragraphs by business segment.
Core earnings by business
segment
|
|
|
|
(In millions of
dollars, unless otherwise indicated)
|
Fourth quarter
|
Year-to-date at
December 31
|
2023
|
20226
|
Variation
|
2023
|
20226
|
Variation
|
Insurance,
Canada
|
78
|
110
|
(29 %)
|
334
|
354
|
(6 %)
|
Wealth
Management
|
91
|
70
|
30 %
|
314
|
260
|
21 %
|
US
Operations
|
26
|
27
|
(4 %)
|
101
|
140
|
(28 %)
|
Investment7
|
95
|
88
|
8 %
|
402
|
343
|
17 %
|
Corporate
|
(54)
|
(41)
|
32 %
|
(195)
|
(142)
|
37 %
|
Total7
|
236
|
254
|
(7 %)
|
956
|
955
|
—
|
__________
|
5
|
Impact of the
tax-exempt investment income (above or below expected long-term tax
savings) from the Company's multinational insurer
status.
|
6
|
Caution should be used
when comparing 2023 results with 2022 restated results under IFRS
17 and IFRS 9 (see the Note regarding 2022 restated results on page
2).
|
7
|
To ensure comparability
with 2023 results, Q3/2022 and Q4/2022 restated figures have been
adjusted to reflect IFRS 17 and IFRS 9 ongoing refinements in
methodologies.
|
|
|
†
|
This item is a
non-IFRS measure; see the "Non-IFRS and Additional Financial
Measures" section in this document for relevant information about
such measures.
|
Insurance, Canada – This business segment includes
all Canadian insurance activities offering a wide range of life,
health, auto and home insurance coverage, as well as vehicle
warranties, to individuals and groups. Fourth quarter core earnings
for this business segment were $78
million compared to the 2022 fourth quarter restated result
of $110 million, which included
$22 million (post-tax) of mostly
unusual gains due to adjustments related to the restatement
of 2022 results under the IFRS 17 and IFRS 9
accounting standards. For the fourth quarter of 2023, the expected
insurance earnings recorded were 6% higher than a year ago,
supported by the contractual service margin (CSM) recognized for
services provided. A -$26 million
impact of new insurance business in the Employee Plans business
unit was recorded. This impact stems from the renewal period of
long-term business for some large groups, which are expected to
benefit business growth and future profitability. As for core
insurance experience, it was globally as expected as minor
variations versus expectations, such as favourable disability
experience and higher auto claim severity at iA Auto and Home,
offset each other. Also, as mortality experience in the last six
months of 2023 was in line with expectations, the higher mortality
claims recorded in the first six months of the year now appear to
have been a momentary event.
Wealth Management – This business segment
includes all the Company's wealth management activities offering a
wide range of savings and retirement solutions to individuals and
groups. In this business segment, core earnings of $91 million
for the fourth quarter were 30% higher than a year
earlier.8 The expected earnings for segregated funds was
20% higher than a year earlier, the insurance experience was
favourable and the core non-insurance activities result was 33%
higher than in 2022. This performance is the result of good
business growth, lower expenses and a solid performance once again
from the distribution affiliates, arising mainly from better
margins amid the higher interest rate environment.
US Operations – This business segment
includes all the Company's U.S. activities offering individuals a
range of life insurance and vehicle warranty products. Fourth
quarter core earnings for this business segment were $26 million, which compares to $27 million for the same period in
2022.8 Results in the Individual Insurance divisions
were good, as reflected in the core insurance service result, which
is 15% higher than last year's result.8 This performance
is the outcome of good business growth in past quarters and
favourable mortality experience. The result for non-insurance
activities was lower, mostly due to lower sales in the Dealer
Services division, a consequence of reduced affordability for
clients resulting from higher financing costs and high vehicle
prices.
Investment – This segment includes the
Company's investment and financing activities, except for the
investment activities of the wealth distribution affiliates. In
this business segment, core earnings of $95
million for the fourth quarter were 8% higher than the
result of $88 million a year
earlier.9 This increase is supported by the core net
investment result, which was 18% higher than a year ago as a result
of the favourable impacts of the investment portfolio optimization,
the bond portfolio credit experience (more credit rating upgrades
than downgrades) and higher interest rates at September 30, 2023 (despite the yield curve still
having an unfavourable shape). Recall that interest rate impacts on
core net investment results for a given quarter are solely
dependent on the yield curve at the beginning of the quarter. The
fourth quarter result also includes an increase in the allowance
for credit losses for the car loans portfolio.
Corporate – This segment reports all
expenses that are not allocated to other segments, such as expenses
for certain corporate functions. This segment recorded after-tax
expenses of $54 million during the
fourth quarter, which compares to $41
million for the same period a year ago. These expenses
include, among other things, investments for the digital
transformation and the enhanced employee experience to support
talent retention, more extensive M&A prospecting activities,
digital data and security projects and regulatory compliance
projects.
Year-end assumption review – The
completion of the annual actuarial assumptions review resulted in a
slightly negative overall impact of $14 million pre-tax. More
specifically, the year-end review had a negative impact of
$75 million pre-tax on fourth quarter
net income (or $56 million after
taxes) and a positive impact of $61 million pre-tax on
future profit from the combined impacts on the CSM and
the risk adjustment (RA). The result of the process was
positive for the morbidity and policyholder behaviour assumptions
and slightly negative for the mortality assumptions, while the
impact of management actions, expenses and model refinements was
unfavourable. More details on the year-end assumption review are
provided in the 2023 Management's Discussion and Analysis.
CSM (contractual service margin)
The contractual service margin, or CSM, is an
IFRS 17 metric that gives an indication of future profits and that
is factored as available capital in the calculation of the solvency
ratio.10 However, this metric is not comprehensive as it
does not consider required capital, non‑insurance business,
PAA11 insurance business or the risk adjustment, which
is also a metric of future profit. The organic CSM movement is a
component of organic capital generation, a more comprehensive
metric, and represents the ongoing CSM value creation calculated
before the impact of items that add undue volatility to the total
CSM, such as macroeconomic variations. In the fourth quarter, the
CSM increased organically by $72 million. This result was
supported by the positive impact of new insurance business of
$148 million in the fourth quarter,
the organic financial growth of $63
million and an insurance experience gain
of $18 million, partially offset by an increase in the
CSM recognized in profit for services provided. The experience gain
is mainly due to favourable mortality and policyholder behaviour
experience. The net favourable non-organic CSM movement
of $72 million during the fourth quarter was mainly due
to the positive impact of macroeconomic variations, partly offset
by the unfavourable impact of the year-end assumption review and
management actions mentioned above and the impact of currency
variations. As a result, the total CSM increased
by $144 million during the quarter to stand at
$5,925 million at
December 31, 2023, an increase of 6% over the last
twelve months.
An analysis of results according to the
financial statements and additional analysis on an annual basis are
presented in the Management's Discussion and Analysis as at
December 31, 2023. They supplement the information
presented above by providing additional indicators for assessing
financial performance.
___________
|
8
|
Caution should be used
when comparing 2023 results with 2022 restated results under IFRS
17 and IFRS 9 (see the Note regarding 2022 restated results on page
2).
|
9
|
To ensure comparability
with 2023 results, Q3/2022 and Q4/2022 restated figures have been
adjusted to reflect IFRS 17 and IFRS 9 ongoing refinements in
methodologies.
|
10
|
The CSM, excluding the
CSM for segregated funds, counts as Tier 1 capital in the solvency
ratio calculation.
|
11
|
Premium Allocation
Approach.
|
Business growth –
Premiums† and deposits totalled nearly $4.1 billion in the fourth quarter and, for the
full year 2023, increased by 8% over the previous year for a
total of over $16.6 billion.
Total assets under management and administration† ended
the year on a high note at $218.9 billion, achieving a solid 11%
increase in 2023.
In the Insurance, Canada segment, the Company had a strong year
in terms of business growth in all business units. More
specifically, in the fourth quarter, the Company continued to lead
the Canadian market in Individual Insurance for number of policies
sold,12 and both Dealer Services and iA Auto and Home
posted strong sales† growth. In Individual Wealth
Management, while the environment for fund sales remained
challenging, the Company performed well, ranking first in both
year-to-date gross and net sales† of segregated funds,
according to the latest industry data,13 and recording
very strong sales of insured annuities and other savings products.
In the US Operations segment, the Individual Insurance division
delivered another strong quarter, resulting in a record year in
terms of sales,† while in the Dealer Services division,
sales continued to be unfavourably impacted by reduced
affordability for customers.
INSURANCE, CANADA
- In Individual Insurance, sales† continued to
be elevated in the fourth quarter, totalling $95 million,
similar to the strong result a year earlier. This result is
attributable to the strength of our extensive distribution
networks, the performance of our digital tools, as well as our
comprehensive and distinctive range of products. Sales were notably
strong for participating life and living benefit products. The
Company continues to lead the Canadian market in terms of number of
policies issued.13
- Group Insurance is made up of two business units:
Employee Plans and Special Markets. For Employee Plans, total
premiums of $390 million were up 4% year over year, reflecting
good retention of in-force business, while sales†
of $6 million compare with $18 million in the
same quarter of 2022. Sales for the full year were up 9% over the
previous year. Note that sales† in this division vary
considerably from one quarter to another based on the size of the
contracts sold. Special Markets sales†
reached $105 million, up 3% year over year, mainly driven
by accidental death and dismemberment insurance sales.
- The Dealer Services division recorded another strong
performance, with total sales† amounting to $160 million in the fourth quarter, up 8% year
over year. This result brought sales† for the full year
2023 to $686 million to achieve a
solid 12% increase over 2022. This performance was
supported by strong sales† growth of
P&C products, which comprise extended warranties and
replacement insurance. The Company's leading position in
Canada, its broad and
comprehensive product offer and its extensive distribution network
have led to sustained sales growth in this division in spite of the
rather challenging macroeconomic environment.
- At iA Auto and Home, direct written premiums†
reached $115 million for the quarter,
recording a strong increase of 15% year over year, supported
by good retention of in-force business.
WEALTH MANAGEMENT
- In Individual Wealth Management, fourth quarter
sales† of insured annuities and other savings products
reached $711 million, a significant increase of 74% from
the previous year's results, as many customers continue to favour
cash equivalent products, which offer safety and attractive yields.
Meanwhile, the Company continued to rank first in year-to-date
gross and net segregated fund sales,† according to the
latest industry data.13 Fourth quarter gross
sales† of segregated funds amounted
to $837 million, up 19% year over year, with net
outflows of $21 million. Net sales were positive for the full
year. Mutual fund gross sales† totalled $393
million, which is 12% higher than a year ago, and net outflows of
$219 million were recorded during the quarter. As a result,
combined net sales of segregated and mutual funds for 2023 were
positive, amounting to $83 million, a
good perfomance in a macroeconomic environment that remained
adverse for the fund sales industry throughout the year.
- Group Savings and Retirement recorded sales†
of $534 million in the fourth quarter
against the backdrop of a very strong quarter a year earlier, when
sales totalled more than $1 billion
following the signing of several large groups.
US OPERATIONS
- Individual Insurance – The division recorded another
strong quarter with very good sales† of US$44 million in the fourth quarter, up 19%
from a year earlier, bringing sales for the full year to a record
high. This result was driven by the strong performance of our
distribution channels and product range, in particular from the
final expense and middle/family markets.
- Dealer Services – Fourth quarter sales†
amounted to US$227 million compared to US$241 million a
year earlier. Although vehicle inventories continued to improve
during the period, reduced affordability from higher financing
costs for consumers continued to have a negative impact on sales,
exerting downward pressure on sales of Finance and Insurance
(F&I) products sold alongside vehicles.
__________
|
12
|
According to the
Canadian data published by LIMRA for the first nine months of the
year.
|
13
|
According to Investor
Economics, November 2023.
|
|
|
†
|
This item is a
non-IFRS measure; see the "Non-IFRS and
Additional Financial Measures" section in this document for
relevant information about such measures.
|
ASSETS UNDER MANAGEMENT AND
ADMINISTRATION
Assets under management and
administration† ended the year at $218.9 billion, up 11% during the year and up 7%
during the quarter. This performance was explained by the impact of
favourable equity market conditions and the rise in general fund
assets stemming from the increase in bond values and significant
growth in sales of insured annuities and other savings products,
which reached $2.7 billion in
2023.
NET PREMIUMS, PREMIUM EQUIVALENTS AND
DEPOSITS
Net premiums, premium equivalents and
deposits† totalled nearly $4.1 billion in the fourth quarter and more than
$16.6 billion for the full year
2023, representing an increase of 2% and 8%, respectively, over the
same period a year earlier. Almost all business units contributed
to these performances, in particular Individual Wealth
Management.
FINANCIAL POSITION
At December 31, 2023, the solvency
ratio† was 145%, similar to the end of the previous
quarter, and compares to 126%14 a year earlier. This
result is well above the Company's operating target of 120%.
Variations during the quarter include the positive contribution of
organic capital generation, the favourable impact of macroeconomic
variations and adjustments to the investment portfolio. These items
were offset by the impact of $171
million in share buybacks (NCIB) and the impact of year-end
assumption changes and management actions. On a pro-forma basis at
December 31, 2023, the solvency ratio is 142% considering
the acquisition of Vericity, a U.S. life insurance carrier and
digital agency, that is anticipated to close in the first half of
2024. The Company's financial leverage ratio at December 31, 2023 was 14.6%,15 a
slight improvement from 14.7% at September
30, 2023.
Organic capital generation and capital
available for deployment† – The
Company organically generated approximately $160 million
in additional capital during the fourth quarter for a total of
$600 million for the year, achieving
the Company's organic capital generation target
of $600+ million in 2023. At December 31, 2023,
the capital available for deployment is assessed
at $1.6 billion, which is a strong result considering the
high level of share buybacks (NCIB) during the quarter.
Book value – The book value per
common share16 was $66.90
at December 31, 2023, up 6% over
twelve months and up 3% from the previous quarter. Excluding the
impact of $461 million in
share buybacks (NCIB) for the year, the book value per common
share increased by 8% in 2023.
Normal Course Issuer Bid –
In the fourth quarter of 2023, under the NCIB program, the Company
redeemed and cancelled 1,987,048 outstanding common
shares for a total value of $171
million. As a result, a total of 5,394,180 outstanding
common shares were redeemed and cancelled in 2023 for a total value
of $461 million. Under the current
NCIB regime, the Company can redeem up to 5,046,835 common
shares, representing approximately 5% of the outstanding common
shares, between November 14, 2023 and November 13, 2024.
Dividend – The Company paid
a quarterly dividend of $0.7650 to
common shareholders in the fourth quarter of 2023. The Board
of Directors approved a quarterly dividend of $0.8200 per share for the first quarter of 2024,
an increase of 7% or $0.0550 from the
previous paid dividend, on the outstanding common shares of
iA Financial Corporation. This dividend is payable on
March 15, 2024 to the shareholders of record at
March 1, 2024.
Dividend Reinvestment and
Share Purchase Plan – Registered shareholders wishing to
enrol in iA Financial Corporation's Dividend Reinvestment and Share
Purchase Plan (DRIP) so as to be eligible to reinvest the next
dividend payable on March 15, 2024 must ensure that the
duly completed form is delivered to Computershare no later than
4:00 p.m. on
February 23, 2024. Enrolment information is provided on
iA Financial Group's website at http://ia.ca/investorrelations,
under the Dividends section. Common shares issued under
iA Financial Corporation's DRIP will be purchased on the
secondary market and no discount will be applicable.
Appointment – On
November 9, 2023, iA Financial Group
announced the appointment of Martin
Gagnon to the Boards of Directors of iA Financial
Corporation Inc. and Industrial Alliance Insurance and Financial
Services Inc., effective January 17,
2024. Mr. Gagnon has over 25 years of experience in
banking, asset management and brokerage firms.
New GHG reduction targets –
On December 14, 2023, iA Financial
Group announced its new greenhouse gas (GHG) reduction targets, set
using 2022 as a baseline. The Company presented two new targets
which replace the previous target set in 2020: a 60% reduction
in GHG emission intensity from the Company's Canadian real estate
holdings by 2035 and a 40% reduction in carbon intensity of the
Company's public corporate bond portfolio by 2035.
__________
|
14
|
2022 figures calculated
according to the IFRS 4 accounting standard and the capital
standard applicable in 2022.
|
15
|
Calculated as:
Debentures, preferred shares issued by a subsidiary and other
equity instruments/(Capital structure + post-tax contractual
service margin (CSM)†).
|
16
|
Book value per common
share is a financial measure calculated by dividing the common
shareholders' equity by the number of common shares outstanding at
the end of the period; all components of this measure are IFRS
measures.
|
|
|
†
|
This item is a non-IFRS
measure; see the "Non-IFRS and Additional Financial Measures"
section in this document for relevant information about such
measures.
|
Awards and distinctions:
- Marcom awards – On November 1,
2023, iA Financial Group was honoured with two 2023 MarCom
Awards for its 2022‑2023 RRSP/TFSA advertising campaign,
winning gold in both the Email Campaign and Social Media Marketing
categories. iA Financial Group stood out among
over 6,500 entries from 45 countries.
- The Globe and Mail's Board Games – In 2023, iA Financial
Group ranked 7th out of 219 companies in The Globe and Mail's Board
Games with a score of 94%, a solid result that compares favourably
to its 22nd rank in 2022.
- Canada's Top 50 Employers
– In 2023, according to Forbes, iA Financial Group ranked 48th
among Canada's top employers,
which compares favourably to its 75th position in 2022.
- J.D. Power 2023 Canada Wealth Management Digital Experience
Study – In 2023, iA Private Wealth, a subsidiary of
iA Financial Group, ranked 2nd in the J.D. Power 2023 Canada
Wealth Management Digital Experience Study. This study evaluates
customer satisfaction with the wealth management digital
experience, based on four factors: visual appeal; navigation;
speed; and information/content.
Subsequent to the fourth
quarter:
- Appointment – On January 9,
2024, iA Financial Group announced the appointment of
Alka Gautam to the Board of
Directors of iA Financial Corporation Inc., effective
January 17, 2024. Ms. Gautam has
more than 20 years of experience in the reinsurance and insurance
industry.
OUTLOOK
Medium-term guidance for iA Financial
Corporation
- Core earnings per common share: target of 10%+ annual average
growth
- Core return on common shareholders' equity (ROE): target of
15%+
- Solvency ratio operating target: target of 120%
- Organic capital generation: target of $600+ million in
2024
- Dividend payout ratio based on core earnings: target range of
25% to 35%
The Company's outlook, including the market
guidance provided, constitutes forward-looking information within
the meaning of securities laws. Although the Company believes that
its outlook is reasonable, such statements involve risks and
uncertainties and undue reliance should not be placed on such
statements. Factors that could cause actual results to differ
materially from expectations include, but are not limited to:
insurance, market, credit, liquidity, strategic, operational and
regulatory risks. In addition, certain material factors or
assumptions are applied in preparing the Company's outlook,
including but not limited to: accuracy of estimates, assumptions
and judgments under applicable accounting policies, and no material
change in accounting standards and policies applicable to the
Company; no material variation in interest rates; no significant
changes to the Company's effective tax rate; no material changes in
the level of the Company's regulatory capital requirements;
availability of options for deployment of excess capital; credit
experience, mortality, morbidity, longevity and policyholder
behaviour being in line with actuarial experience studies;
investment returns being in line with the Company's expectations
and consistent with historical trends; different business growth
rates per business unit; no unexpected changes in the economic,
competitive, insurance, legal or regulatory environment or actions
by regulatory authorities that could have a material impact on the
business or operations of iA Financial Group or its business
partners; no unexpected change in the number of shares outstanding;
and the non-materialization of risks or other factors mentioned or
discussed elsewhere in this document. The Company's outlook serves
to provide shareholders, market analysts, investors, and other
stakeholders with a basis for adjusting their expectations with
regard to the Company's performance throughout the year and may not
be appropriate for other purposes. Additional information about
risk factors and assumptions applied may be found in the
"Forward-looking Statements" section of this document.
FOURTH QUARTER HIGHLIGHTS – iA Insurance
Profitability – In the
fourth quarter of 2023, iA Insurance recorded net income attributed
to its sole common shareholder, iA Financial Corporation, of
$272 million compared to $201 million a year earlier.17 An
analysis of results according to the financial statements and
additional analysis on an annual basis are presented in the
Industrial Alliance Insurance and Financial Services Inc.
Management's Discussion and Analysis as at December 31, 2023.
Financial position – The
solvency ratio of iA Insurance was 139% at December 31, 2023, compared with 140% at the end
of the previous quarter and 118%18 a year earlier. The
one percentage point decrease in the fourth quarter is mainly
explained by the dividend payments to the Company's sole common
shareholder, which were partly offset by the positive contribution
of organic capital generation.
Dividend – In the fourth
quarter of 2023, iA Insurance paid a dividend of $200 million in favour of its sole common
shareholder, iA Financial Corporation. Late in the fourth
quarter of 2023, the Board of Directors of iA Insurance also
approved an additional dividend of $125 million to be
paid to iA Financial Corporation. Of this amount, $109 million was paid in the fourth quarter
of 2023 and the remaining balance will be settled over the
course of 2024. Accordingly, iA Insurance paid a total of
$309 million in dividends to
iA Financial Corporation in the fourth quarter of 2023.
In the first quarter of 2024, iA Insurance
approved the declaration of a dividend of $150 million to be paid to its sole common
shareholder, iA Financial Corporation.
iA Insurance
|
|
|
|
|
|
|
Earnings Highlights
|
Fourth quarter
|
Year-to-date at
December 31
|
(In millions of
dollars, unless otherwise indicated)
|
2023
|
202219
|
Variation
|
2023
|
202219
|
Variation
|
Net income attributed
to shareholders
|
274
|
205
|
34 %
|
855
|
489
|
75 %
|
Less: dividends on
preferred shares
|
(2)
|
(4)
|
|
(8)
|
(18)
|
|
Net income attributed
to common shareholder
|
272
|
201
|
35 %
|
847
|
471
|
80 %
|
Other Financial Highlights
|
(In millions of
dollars, unless otherwise indicated)
|
December 31, 2023
|
September 30, 2023
|
December 31, 2022
|
Total
capital†
|
6,190
|
6,194
|
6,354
|
Solvency
ratio†,20
|
139 %
|
140 %
|
118 %
|
Year-end assumption review – The
completion of the annual actuarial assumption review resulted in a
negative impact of $38 million after taxes on fourth
quarter net income. The result of the process was positive for the
mortality and morbidity assumptions and the policyholder behaviour
assumptions, while the impact of management actions, expenses and
model refinements was unfavourable.
Appointment – On November 9, 2023, iA Financial Group announced
the appointment of Martin Gagnon to
the Board of Directors of Industrial Alliance Insurance and
Financial Services Inc., effective January
17, 2024. Mr. Gagnon has over 25 years of experience in
banking, asset management and brokerage firms.
Acquisition of U.S. company Vericity, Inc.
– On October 3, 2023, iA
Financial Group announced that it had entered into a definitive
merger agreement to acquire U.S. life insurance company Vericity,
Inc. for a purchase price of US$170
million. Vericity comprises two entities servicing the
middle-market life insurance space, with synergies in between and
combining artificial intelligence and rich data analytics to
deliver innovative proprietary technology: Fidelity Life, an
insurance carrier, and eFinancial, a direct-to-consumer digital
agency. Vericity employs more than 400 employees. The transaction
is expected to close in the first half of 2024 and is expected to
become slightly accretive to core EPS in year 2 and to EPS in year
3.
iA Private Wealth Dual Registration – On
October 10, 2023, iA Financial
Group's investment dealer affiliate, iA Private Wealth, was
approved for dual registration by the Canadian Investment
Regulatory Organization (CIRO) and is now registered in both the
categories of investment dealer and mutual fund dealer. iA Private
Wealth is the first major independent firm to receive this
approval, which provides greater flexibility and more attractive
options for advisors and advisory teams, and ultimately clients,
across iA Wealth dealers. This important development establishes a
broader basis for the registration of representatives, which will
help to enhance opportunities for recruitment, growth, migration
and succession planning.
Partnership with Mercedes-Benz – iA
Financial Group concluded a partnership with Mercedes-Benz
Financial Services Canada to be the new administrator of their
First Class Protection Plan Program. This new partnership continues
to demonstrate the Company's commitment to the OEM branded Finance
and Insurance sector. The new program will be seamlessly integrated
into Mercedes-Benz dealerships across Canada, as of January
8, 2024, to include ancillary products.
__________
|
17
|
Caution should be used
when comparing 2023 results with 2022 restated results under IFRS
17 and IFRS 9 (see the Note regarding 2022 restated results on page
2).
|
18
|
2022 figures calculated
according to the IFRS 4 accounting standard and the capital
standard applicable in 2022.
|
19
|
Caution should be used
when comparing 2023 results with 2022 restated results under IFRS
17 and IFRS 9 (see the Note regarding 2022 restated results
on page 2).
|
20
|
Ratio for December 31,
2022 calculated under the IFRS 4 accounting standard and the
capital standard applicable in 2022.
|
|
|
†
|
This item is a non-IFRS
measure; see the "Non-IFRS and Additional Financial Measures"
section in this document for relevant information about such
measures.
|
GENERAL INFORMATION
Non-IFRS and Additional Financial
Measures
iA Financial Corporation and iA Insurance report
their financial results and statements in accordance with
International Financial Reporting Standards ("IFRS"). They also
publish certain financial measures or ratios that are not based on
IFRS ("non-IFRS"). A financial measure is considered a non-IFRS
measure for Canadian securities law purposes if it is presented
other than in accordance with the generally accepted accounting
principles ("GAAP") used for the Company's audited financial
statements. The Company uses non-IFRS measures when evaluating its
results and measuring its performance. The Company believes that
non-IFRS measures provide additional information to better
understand its financial results and assess its growth and earnings
potential, and that they facilitate comparison of the quarterly and
full year results of the Company's ongoing operations. Since
non-IFRS measures do not have standardized definitions and meaning,
they may differ from the non-IFRS financial measures used by other
institutions and should not be viewed as an alternative to measures
of financial performance determined in accordance with IFRS. The
Company strongly encourages investors to review its financial
statements and other publicly filed reports in their entirety and
not to rely on any single financial measure. These non-IFRS
measures are often accompanied by and reconciled with IFRS
financial measures. For certain non-IFRS measures, there are no
directly comparable amounts under IFRS. This document presents
non-IFRS measures used by the Company when evaluating its results
and measuring its performance.
For relevant information about non-IFRS measures
used in this document, see the "Non-IFRS and Additional Financial
Measures" section in the Management's Discussion and Analysis for
the period ending December 31, 2023, which is hereby
incorporated by reference and is available for review at
sedarplus.ca or on iA Financial Group's website at ia.ca.
Forward-Looking Statements
This document may contain statements relating to
strategies used by iA Financial Group or statements that are
predictive in nature, that depend upon or refer to future events or
conditions, or that include words such as "may", "will", "could",
"should", "would", "suspect", "expect", "anticipate", "intend",
"plan", "believe", "estimate", and "continue" (or the negative
thereof), as well as words such as "objective", "goal", "guidance",
"outlook" and "forecast", or other similar words or expressions.
Such statements constitute forward-looking statements within the
meaning of securities laws. In this document, forward-looking
statements include, but are not limited to, information concerning
possible or assumed future operating results. These statements are
not historical facts; they represent only expectations, estimates
and projections regarding future events and are subject to
change.
Although iA Financial Group believes that the
expectations reflected in such forward-looking statements are
reasonable, such statements involve risks and uncertainties, and
undue reliance should not be placed on such statements. In
addition, certain material factors or assumptions are applied in
making forward-looking statements, and actual results may differ
materially from those expressed or implied in such statements.
- Material factors and risks that could cause actual results to
differ materially from expectations include, but are not limited
to: insurance, market, credit, liquidity, strategic, operational
and regulatory risks, such as: general business and economic
conditions; level of inflation; level of competition and
consolidation; changes in laws and regulations, including tax laws
and changes made to capital and liquidity guidelines; actions by
regulatory authorities that may affect the business or operations
of iA Financial Group or its business partners; risks associated
with the regional or global political and social environment; risks
related to climate change including the transition to a low-carbon
economy and iA Financial Group's ability to satisfy
stakeholder expectations on environmental, social and governance
issues; information technology, data and information security
risks, including cyber risks; fraud risk; risks
related to human resources; hedging strategy risks;
iA Financial Group liquidity risk, including the availability
of financing to meet financial commitments at expected maturity
dates; risk of incorrect design, implementation or use of a model;
accuracy of information received from counterparties and the
ability of counterparties to meet their obligations; and the
occurrence of natural or man‑made disasters, international
conflicts, pandemic diseases (such as the COVID-19 pandemic) and
acts of terrorism.
- Material factors and assumptions used in the preparation of
financial outlooks include, but are not limited to: accuracy of
estimates, assumptions and judgments under applicable accounting
policies, and no material change in accounting standards and
policies applicable to the Company; no material variation in
interest rates; no significant changes to the Company's effective
tax rate; no material changes in the level of the Company's
regulatory capital requirements; availability of options for
deployment of excess capital; credit experience, mortality,
morbidity, longevity and policyholder behaviour being in line with
actuarial experience studies; investment returns being in line with
the Company's expectations and consistent with historical trends;
different business growth rates per business unit; no unexpected
changes in the economic, competitive, insurance, legal or
regulatory environment or actions by regulatory authorities that
could have a material impact on the business or operations of
iA Financial Group or its business partners; no unexpected
change in the number of shares outstanding; and the
non‑materialization of risks or other factors mentioned or
discussed elsewhere in this document or found in the "Risk
Management" section of the Company's Management's Discussion and
Analysis for 2023 that could influence the Company's performance or
results.
Economic and financial instability in a context
of geopolitical tensions – Unfavourable economic conditions and
financial instability are causing some concern, including interest
rate hikes by central banks to fight inflation. The war in
Ukraine, the Hamas-Israel
conflict and tension in China are
also causing instability in global markets. These events, among
others, could lead to reduced consumer and investor confidence,
significant financial volatility and more limited growth
opportunities, as well as testing the Company's ability to
anticipate and mitigate headwinds in its markets and could
negatively affect the Company's financial outlook, results and
operations.
Additional information about the material factors
that could cause actual results to differ materially from
expectations and about material factors or assumptions applied in
making forward-looking statements may be found in the "Risk
Management" section of the Management's Discussion and Analysis for
2023, the "Management of Risks Associated with Financial
Instruments" note to the audited consolidated financial statements
for the year ended December 31, 2023
and elsewhere in iA Financial Group's filings with the Canadian
Securities Administrators, which are available for review at
sedarplus.ca.
The forward-looking statements in this document
reflect iA Financial Group's expectations as of the date of this
document. iA Financial Group does not undertake to update or
release any revisions to these forward-looking statements to
reflect events or circumstances after the date of this document or
to reflect the occurrence of unanticipated events, except as
required by law.
Documents Related to the Financial Results
For a detailed discussion of iA Financial
Corporation's and iA Insurance's fourth quarter results, investors
are invited to consult the Management's Discussion and Analysis for
the quarter ended December 31, 2023, the related
financial statements and accompanying notes and the Financial
Information Package for each company, all of which are available on
the iA Financial Group website at ia.ca under About iA,
in the Investor Relations/Financial Reports section and
on SEDAR+ at sedarplus.ca.
Conference Call
Management will hold a conference call to present
iA Financial Group's fourth quarter results on Wednesday,
February 21, 2024 at 11:00 a.m. (ET). To
listen to the conference call, choose one of the options below:
- Live
Webcast: Click
here (https://app.webinar.net/K70GwKZBDoR)
or go to the iA Financial Group website, at ia.ca/about-us,
in the Investor Relations section under the Events and
Presentations tab.
|
- By phone: Click here (https://emportal.ink/3RO0OJq) and
enter your phone number to receive a phone call that will instantly
connect you to the conference call. You can also dial 416-764-8651
or 1-888-390‑0620 (toll-free in North
America) fifteen minutes before the conference call is
scheduled to take place and an operator will connect you.
About iA Financial
Group
iA Financial Group is one of the largest
insurance and wealth management groups in Canada, with operations in the United States. Founded in 1892, it is an
important Canadian public company and is listed on the Toronto
Stock Exchange under the ticker symbols IAG (common shares)
and IAF (preferred shares).
ia.ca
iA Financial Group is a business name and trademark of iA
Financial Corporation Inc. and Industrial Alliance Insurance
and Financial Services Inc.
Consolidated Income
Statements
|
|
Quarters
ended
December 31
|
Twelve months
ended
December 31
|
(in millions of
Canadian dollars, unless otherwise indicated)
|
2023
|
2022¹
|
2023
|
2022¹
|
Insurance service
result
|
|
|
|
|
Insurance
revenue
|
$
1,547
|
$ 1,383
|
$
5,740
|
$ 5,138
|
Insurance service
expenses
|
(1,465)
|
(1,245)
|
(4,893)
|
(4,103)
|
Net income (expenses)
from reinsurance contracts
|
95
|
13
|
6
|
(271)
|
|
177
|
151
|
853
|
764
|
Net investment
result
|
|
|
|
|
Net investment
income
|
|
|
|
|
Interest and other
investment income
|
545
|
507
|
1,946
|
1,864
|
Change in fair value of
investments
|
3,869
|
(232)
|
2,037
|
(10,135)
|
|
4,414
|
275
|
3,983
|
(8,271)
|
Finance income
(expenses) from insurance contracts
|
(4,156)
|
51
|
(3,307)
|
8,423
|
Finance income
(expenses) from reinsurance contracts
|
93
|
(112)
|
155
|
(115)
|
(Increase) decrease in
investment contract liabilities and interest on deposits
|
(43)
|
(19)
|
(151)
|
(36)
|
|
308
|
195
|
680
|
1
|
Investment income
(expenses) from segregated funds net assets
|
3,142
|
1,651
|
4,697
|
(3,897)
|
Finance income
(expenses) related to segregated funds liabilities
|
(3,142)
|
(1,651)
|
(4,697)
|
3,897
|
|
—
|
—
|
—
|
—
|
|
308
|
195
|
680
|
1
|
Other
revenues
|
379
|
373
|
1,507
|
1,537
|
Other operating
expenses
|
(516)
|
(474)
|
(1,973)
|
(1,896)
|
Other financing
charges
|
(15)
|
(16)
|
(66)
|
(57)
|
Income before income
taxes
|
333
|
229
|
1,001
|
349
|
Income tax (expense)
recovery
|
(77)
|
(37)
|
(212)
|
(15)
|
Net
income
|
256
|
192
|
789
|
334
|
Dividends on preferred
shares issued by a subsidiary and distributions on other equity
instruments
|
(8)
|
(11)
|
(20)
|
(25)
|
Net income
attributed to common shareholders
|
$ 248
|
$ 181
|
$ 769
|
$ 309
|
Earnings per common
share (in dollars)
|
|
|
|
|
Basic1
|
$
2.47
|
$ 1.72
|
$
7.51
|
$ 2.90
|
Diluted1
|
2.46
|
1.71
|
7.48
|
2.89
|
Weighted average
number of shares outstanding (in millions of units)
|
|
|
|
|
Basic
|
101
|
105
|
102
|
106
|
Diluted
|
101
|
106
|
103
|
107
|
Dividends per common
share (in dollars)
|
0.77
|
0.68
|
2.97
|
2.60
|
1 The
Consolidated Income Statement and the Earnings per common
share for the quarter ended
December 31, 2022 and for the twelve months ended
December 31, 2022 reflect the adoption of IFRS 17 and
IFRS 9 on January 1, 2022, and consequently, the amounts are
different from those previously published.
|
|
Consolidated
Statements of Financial Position
|
|
As at
December 31
|
As at December
31
|
As at January
1
|
(in millions of
Canadian dollars)
|
2023
|
2022¹
|
2022¹
|
Assets
|
|
|
|
Investments
|
|
|
|
Cash and short-term
investments
|
$ 1,379
|
$ 1,358
|
$ 1,546
|
Bonds
|
29,940
|
26,117
|
33,127
|
Stocks
|
4,069
|
4,028
|
3,877
|
Loans
|
3,660
|
3,704
|
3,870
|
Derivative financial
instruments
|
1,787
|
990
|
917
|
Other invested
assets
|
172
|
563
|
557
|
Investment
properties
|
1,611
|
1,804
|
1,870
|
|
42,618
|
38,564
|
45,764
|
Other assets
|
3,157
|
2,716
|
2,812
|
Insurance contract
assets
|
167
|
215
|
123
|
Reinsurance contract
assets
|
2,312
|
2,048
|
1,890
|
Fixed assets
|
320
|
337
|
369
|
Deferred income tax
assets
|
270
|
112
|
111
|
Intangible
assets
|
1,847
|
1,784
|
1,708
|
Goodwill
|
1,318
|
1,318
|
1,267
|
General fund
assets
|
52,009
|
47,094
|
54,044
|
Segregated funds net
assets
|
41,837
|
37,334
|
39,577
|
Total
assets
|
$
93,846
|
$ 84,428
|
$ 93,621
|
Liabilities
|
|
|
|
Insurance contract
liabilities
|
$
33,630
|
$ 29,685
|
$ 37,072
|
Reinsurance contract
liabilities
|
8
|
233
|
129
|
Investment contract
liabilities and deposits
|
6,050
|
4,350
|
4,150
|
Derivative financial
instruments
|
787
|
1,465
|
497
|
Other
liabilities
|
2,678
|
2,372
|
3,013
|
Deferred income tax
liabilities
|
319
|
362
|
526
|
Debentures
|
1,499
|
1,500
|
1,450
|
General fund
liabilities
|
44,971
|
39,967
|
46,837
|
Insurance contract
liabilities related to segregated funds
|
30,201
|
26,901
|
28,692
|
Investment contract
liabilities related to segregated funds
|
11,636
|
10,433
|
10,885
|
Total
liabilities
|
$
86,808
|
$ 77,301
|
$ 86,414
|
Equity
|
|
|
|
Share capital and
contributed surplus
|
$ 1,620
|
$ 1,692
|
$ 1,723
|
Preferred shares issued
by a subsidiary and other equity instruments
|
375
|
525
|
525
|
Retained earnings and
accumulated other comprehensive income
|
5,043
|
4,910
|
4,959
|
|
7,038
|
7,127
|
7,207
|
Total liabilities
and equity
|
$
93,846
|
$ 84,428
|
$ 93,62
|
1 The
Consolidated Statements of Financial Position as at
December 31, 2022 and as at January 1, 2022 reflect the
adoption of IFRS 17 and IFRS 9 on January 1, 2022, and
consequently, the amounts are different from those previously
published.
|
|
Segmented
Results
|
|
Quarter ended
December 31, 2023
|
(in millions of
dollars)
|
Insurance,
Canada
|
Wealth
Management
|
US
Operations
|
Investment
|
Corporate
|
Consolidation
adjustments
|
Total
|
Insurance service
result
|
|
|
|
|
|
|
|
Insurance
revenue
|
$ 927
|
$
263
|
$ 357
|
$ —
|
$ —
|
$
—
|
$
1,547
|
Insurance service
expenses and net expenses from
reinsurance contracts
|
(847)
|
(182)
|
(341)
|
—
|
—
|
—
|
(1,370)
|
|
80
|
81
|
16
|
—
|
—
|
—
|
177
|
Net investment
result
|
|
|
|
|
|
|
|
Net investment
income
|
—
|
34
|
—
|
4,380
|
2
|
(2)
|
4,414
|
Finance income
(expenses) from insurance and
reinsurance contracts and change in investment
contracts and interest on deposits
|
—
|
(2)
|
—
|
(4,106)
|
—
|
2
|
(4,106)
|
|
—
|
32
|
—
|
274
|
2
|
—
|
308
|
Other
revenues
|
47
|
306
|
38
|
8
|
—
|
(20)
|
379
|
Other
expenses
|
(68)
|
(302)
|
(62)
|
(45)
|
(74)
|
20
|
(531)
|
Income before income
taxes
|
59
|
117
|
(8)
|
237
|
(72)
|
—
|
333
|
Income tax (expense)
recovery
|
(16)
|
(32)
|
1
|
(48)
|
18
|
—
|
(77)
|
Net
income
|
43
|
85
|
(7)
|
189
|
(54)
|
—
|
256
|
Dividends on preferred
shares issued by a subsidiary and
distribution on other equity instruments
|
—
|
—
|
—
|
(8)
|
—
|
—
|
(8)
|
Net income
attributed to common shareholders
|
$ 43
|
$
85
|
$ (7)
|
$ 181
|
$ (54)
|
$
—
|
$ 248
|
|
Quarter ended December
31, 20221
|
(in millions of
dollars)
|
Insurance,
Canada
|
Wealth
Management
|
US
Operations
|
Investment
|
Corporate
|
Consolidation
adjustments
|
Total
|
Insurance service
result
|
|
|
|
|
|
|
|
Insurance
revenue
|
$ 836
|
$
219
|
$ 328
|
$ —
|
$ —
|
$
—
|
$
1,383
|
Insurance service
expenses and net expenses from
reinsurance contracts
|
(784)
|
(152)
|
(296)
|
—
|
—
|
—
|
(1,232)
|
|
52
|
67
|
32
|
—
|
—
|
—
|
151
|
Net investment
result
|
|
|
|
|
|
|
|
Net investment
income
|
—
|
26
|
—
|
249
|
—
|
—
|
275
|
Finance income
(expenses) from insurance and
reinsurance contracts and change in investment
contracts and interest on deposits
|
—
|
(6)
|
—
|
(74)
|
—
|
—
|
(80)
|
|
—
|
20
|
—
|
175
|
—
|
—
|
195
|
Other
revenues
|
45
|
289
|
50
|
8
|
—
|
(19)
|
373
|
Other
expenses
|
(65)
|
(285)
|
(59)
|
(44)
|
(56)
|
19
|
(490)
|
Income before income
taxes
|
32
|
91
|
23
|
139
|
(56)
|
—
|
229
|
Income tax (expense)
recovery
|
(9)
|
(24)
|
(10)
|
(8)
|
14
|
—
|
(37)
|
Net
income
|
23
|
67
|
13
|
131
|
(42)
|
—
|
192
|
Dividends on preferred
shares issued by a subsidiary and
distribution on other equity instruments
|
—
|
—
|
—
|
(11)
|
—
|
—
|
(11)
|
Net income
attributed to common shareholders
|
$ 23
|
$
67
|
$ 13
|
$ 120
|
$ (42)
|
$
—
|
$ 181
|
1
Presentation and figures have been adjusted to reflect changes in
reportable operating segments and the effect of the adoption of
IFRS 17 and IFRS 9 on January 1, 2022.
|
|
Twelve months ended
December 31, 2023
|
(in millions of
dollars)
|
Insurance,
Canada
|
Wealth
Management
|
US
Operations
|
Investment
|
Corporate
|
Consolidation
adjustments
|
Total
|
Insurance service
result
|
|
|
|
|
|
|
|
Insurance
revenue
|
$
3,507
|
$
939
|
$
1,294
|
$ —
|
$ —
|
$
—
|
$
5,740
|
Insurance service
expenses and net expenses from
reinsurance contracts
|
(3,065)
|
(657)
|
(1,165)
|
—
|
—
|
—
|
(4,887)
|
|
442
|
282
|
129
|
—
|
—
|
—
|
853
|
Net investment
result
|
|
|
|
|
|
|
|
Net investment
income
|
—
|
121
|
—
|
3,870
|
—
|
(8)
|
3,983
|
Finance income
(expenses) from insurance and
reinsurance contracts and change in investment
contracts and interest on deposits
|
—
|
(23)
|
—
|
(3,288)
|
—
|
8
|
(3,303)
|
|
—
|
98
|
—
|
582
|
—
|
—
|
680
|
Other
revenues
|
196
|
1,202
|
165
|
29
|
—
|
(85)
|
1,507
|
Other
expenses
|
(263)
|
(1,178)
|
(230)
|
(187)
|
(266)
|
85
|
(2,039)
|
Income before income
taxes
|
375
|
404
|
64
|
424
|
(266)
|
—
|
1,001
|
Income tax (expense)
recovery
|
(101)
|
(116)
|
(17)
|
(46)
|
68
|
—
|
(212)
|
Net
income
|
274
|
288
|
47
|
378
|
(198)
|
—
|
789
|
Dividends on preferred
shares issued by a subsidiary and
distribution on other equity instruments
|
—
|
—
|
—
|
(20)
|
—
|
—
|
(20)
|
Net income
attributed to common shareholders
|
$ 274
|
$
288
|
$ 47
|
$ 358
|
$ (198)
|
$
—
|
$ 769
|
|
Twelve months ended
December 31, 20221
|
(in millions of
dollars)
|
Insurance,
Canada
|
Wealth
Management
|
US
Operations
|
Investment
|
Corporate
|
Consolidation
adjustments
|
Total
|
Insurance service
result
|
|
|
|
|
|
|
|
Insurance
revenue
|
$
3,134
|
$
814
|
$
1,190
|
$ —
|
$ —
|
$
—
|
$
5,138
|
Insurance service
expenses and net expenses from
reinsurance contracts
|
(2,742)
|
(572)
|
(1,060)
|
—
|
—
|
—
|
(4,374)
|
|
392
|
242
|
130
|
—
|
—
|
—
|
764
|
Net investment
result
|
|
|
|
|
|
|
|
Net investment
income
|
—
|
56
|
—
|
(8,327)
|
—
|
—
|
(8,271)
|
Finance income
(expenses) from insurance and
reinsurance contracts and change in investment
contracts and interest on deposits
|
—
|
(12)
|
—
|
8,284
|
—
|
—
|
8,272
|
|
—
|
44
|
—
|
(43)
|
—
|
—
|
1
|
Other
revenues
|
182
|
1,190
|
222
|
32
|
—
|
(89)
|
1,537
|
Other
expenses
|
(250)
|
(1,152)
|
(224)
|
(182)
|
(234)
|
89
|
(1,953)
|
Income before income
taxes
|
324
|
324
|
128
|
(193)
|
(234)
|
—
|
349
|
Income tax (expense)
recovery
|
(86)
|
(85)
|
(29)
|
128
|
57
|
—
|
(15)
|
Net
income
|
238
|
239
|
99
|
(65)
|
(177)
|
—
|
334
|
Dividends on preferred
shares issued by a subsidiary and
distribution on other equity instruments
|
—
|
—
|
—
|
(25)
|
—
|
—
|
(25)
|
Net income
attributed to common shareholders
|
$ 238
|
$
239
|
$ 99
|
$ (90)
|
$ (177)
|
$
—
|
$ 309
|
1
Presentation and figures have been adjusted to reflect changes in
reportable operating segments and the effect of the adoption of
IFRS 17 and IFRS 9 on January 1, 2022.
|
SOURCE iA Financial Group