IA posts $327M Q2 net income

IA Financial Group reported a second-quarter net income attributed to shareholders of $327 million, 53% higher than the same quarter in 2024, according to a release Wednesday.

Core earnings from the Canadian insurance segment were $133 million for the quarter, up from $106 million in the same period last year. Core insurance gains were mainly driven by favourable morbidity experience in employee plans, favourable mortality experience in individual insurance and lower claims in auto and home insurance.

Individual insurance sales totalled $103 million, 5% more than the same quarter a year earlier. Sales were notably strong for participating insurance. The Quebec-based insurer claimed to issue the highest number of policies in Canada.

Second-quarter sales in employee plans totalled $8 million, down from $25 million in the same quarter last year. This was due to a lower volume of quoting activities in the prior months. Group insurance sales vary from quarter to quarter based on the size of the contracts sold, iA said. Still, employee plans were 42% higher on a year-to-date basis. Net premiums, premium equivalents and deposits increased by 9% year over year, as premiums increased on renewals.

Wealth management core earnings were $113 million for the second quarter, compared with $98 million a year ago. Segregated fund gross sales were strong in the second quarter, totalling $1.4 billion, or 8% more than the same quarter in 2024. Clients continued to favour asset classes with higher return potential over guaranteed investments.

Group savings and retirement sales for the second quarter were $821 million, 4% lower than a year earlier. Growth in accumulation product sales was offset by a decrease in insured annuities sales.

Assets under management and administration was $273.8 billion at June 30, up 16% compared to the same time last year. This growth was mainly driven by financial market performance and net segregated fund inflows.

Jonathan Got

Jonathan Got is a reporter with Advisor.ca and its sister publication, Investment Executive. Reach him at jonathan@newcom.ca.