iA Financial Corporation Inc (TSE:IAG)
TSX:IAG
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iA Financial Corporation Inc
(TSX:IAG)
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Rating:72Outperform
Price Target:
C$195.00
â–²(12.99% Upside)
Action:ReiteratedDate:02/19/26
The score is driven mainly by strong underlying financial performance and a constructive earnings outlook with confident ROE and capital-generation targets. This is partially offset by weak near-term technical momentum (oversold and below key moving averages), while a reasonable P/E and moderate dividend yield provide supportive valuation.
Positive Factors
Core ROE and profitability guidance
Sustained high core ROE (17.1%) and an explicit 17% ROE target demonstrate durable capital efficiency and disciplined underwriting. This target-driven focus supports long-term earnings quality, encourages prudent capital allocation and underpins capacity for dividends, buybacks, or M&A.
Negative Factors
Reserve strengthening on legacy term product
Reserve build for a legacy term block signals persistent adverse lapse/mortality dynamics that reduce near-term earnings clarity. Strengthening reserves for long-dated liabilities consumes capital, raises earnings volatility, and may require ongoing monitoring, repricing or capital support for that cohort.
Read all positive and negative factors
Positive Factors
Negative Factors
Core ROE and profitability guidance
Sustained high core ROE (17.1%) and an explicit 17% ROE target demonstrate durable capital efficiency and disciplined underwriting. This target-driven focus supports long-term earnings quality, encourages prudent capital allocation and underpins capacity for dividends, buybacks, or M&A.
Read all positive factors
iA Financial Corporation Inc (IAG) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$15.81B
Dividend Yield2.11%
Average Volume (3M)249.62K
Price to Earnings (P/E)15.1
Beta (1Y)1.02
Revenue Growth3.39%
EPS Growth15.42%
CountryCA
Employees7,000
SectorFinancial
Sector Strength70
IndustryInsurance - Diversified
Share Statistics
EPS (TTM)3.10
Shares Outstanding90,117,910
10 Day Avg. Volume208,907
30 Day Avg. Volume249,624
Financial Highlights & Ratios
PEG Ratio0.98
Price to Book (P/B)2.00
Price to Sales (P/S)1.46
P/FCF Ratio5.15
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$178.33Price Target Upside3.33% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)13.95
Revenue Forecast (FY)C$600.00M
iA Financial Corporation Inc Business Overview & Revenue Model
Company Description
iA Financial Corporation Inc., through its subsidiary, Industrial Alliance Insurance and Financial Services Inc., provides various life and health insurance products in Canada and the United States. The company operates through Individual Insuranc...
How the Company Makes Money
iA Financial Corporation makes money primarily by underwriting insurance and managing client assets, supplemented by fee-based and financing-related revenues from dealer services. (1) Insurance underwriting and policy administration: The company c...
iA Financial Corporation Inc Earnings Call Summary
Earnings Call Date:Feb 17, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 05, 2026
Earnings Call Sentiment Positive
The call presented a predominately positive picture: iA delivered strong full-year results, met or exceeded key midterm targets (core ROE 17.1%, 16% core EPS growth), produced above-target organic capital ($665M), reported sizeable AUM growth (+31%), and showed broad-based sales momentum across Canada and the U.S. The RF Capital acquisition is already accretive and contributing to growth. Notable near-term headwinds include reserve strengthening for a specific term product and adverse group experience tied to foreign student coverage, a Q4 spike in corporate variable compensation and some one-off charges that weighed on quarter results. Overall, the strategic and financial momentum appears to outweigh the contained operational and reserve-related challenges.Positive Updates
Core profitability and EPS growth
Core ROE of 17.1% (trailing 12 months) and 16% growth in core EPS for 2025; Q4 core EPS of $3.10, meeting midterm objectives.
Negative Updates
Insurance Canada quarterly earnings decline
Insurance Canada core earnings fell to $105 million in Q4 from $116 million a year earlier; prior-year included a $15 million core insurance experience gain while Q4 2025 recorded a core insurance experience loss of $4 million driven by normalization at iA Auto & Home and unfavorable morbidity in special markets.
Read all updates
Q4-2025 Updates
Positive
Negative
Core profitability and EPS growth
Core ROE of 17.1% (trailing 12 months) and 16% growth in core EPS for 2025; Q4 core EPS of $3.10, meeting midterm objectives.
Read all positive updates
Company Guidance
Management guided to at least 17% core ROE for 2026 and more than $700 million of organic capital generation next year, while updating quarterly core other‑expense guidance to $70 million ± $5 million; they closed 2025 with a pro‑forma solvency ratio of 137% (133% reported), $1.4 billion of capital available for deployment, $665 million of organic capital generated in 2025 (including $170 million in Q4), and a continued, balanced capital‑deployment approach (RF Capital acquisition accretive, ongoing NCIB and dividends). Key year‑end metrics cited to support the guidance included Q4 core EPS of $3.10 and a trailing‑12‑month core ROE of 17.1%, book value per share of $79.24 (up 8% YoY, >10% ex‑NCIB), net premiums and deposits of $5.9 billion (+4%), total AUM/A of >$341 billion (+31%), record Q4 individual insurance sales of $111 million, strong wealth sales (individual gross $3.1 billion; segregated funds gross ≈$2.0 billion, net ≈$1.2 billion), and noted Q4 corporate core other expenses of $74 million (near prior upper target) and $87 million pretax including a $13 million variable‑comp provision.iA Financial Corporation Inc Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
84
Very Positive
Cash Flow
72
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 11.31B | 7.93B | 8.71B | -3.50B | 13.40B |
| Gross Profit | 11.31B | 3.70B | 3.14B | 12.00M | 4.35B |
| EBITDA | 1.75B | 1.61B | 1.35B | 656.00M | 1.60B |
| Net Income | 1.10B | 962.00M | 789.00M | 334.00M | 859.00M |
Balance Sheet | |||||
| Total Assets | 122.81B | 109.86B | 93.85B | 87.42B | 94.66B |
| Cash, Cash Equivalents and Short-Term Investments | 1.95B | 1.57B | 1.38B | 1.36B | 1.55B |
| Total Debt | 2.77B | 2.09B | 1.87B | 2.07B | 1.65B |
| Total Liabilities | 114.54B | 102.39B | 86.81B | 80.28B | 87.41B |
| Stockholders Equity | 8.27B | 7.47B | 7.04B | 7.14B | 7.25B |
Cash Flow | |||||
| Free Cash Flow | 3.21B | 763.00M | 1.06B | 326.00M | -63.00M |
| Operating Cash Flow | 3.44B | 1.04B | 1.34B | 613.00M | 185.00M |
| Investing Cash Flow | -2.02B | -491.00M | -307.00M | -287.00M | -294.00M |
| Financing Cash Flow | -712.00M | -397.00M | -1.01B | -525.00M | -294.00M |
iA Financial Corporation Inc Technical Analysis
Positive
172.58
Price Trends
157.58
Positive
164.61
Positive
157.73
Positive
Market Momentum
4.74
Negative
74.11
Negative
91.21
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:IAG, the sentiment is Positive. The current price of 172.58 is above the 20-day moving average (MA) of 159.74, above the 50-day MA of 157.58, and above the 200-day MA of 157.73, indicating a bullish trend. The MACD of 4.74 indicates Negative momentum. The RSI at 74.11 is Negative, neither overbought nor oversold. The STOCH value of 91.21 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:IAG.
iA Financial Corporation Inc Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | C$5.92B | 4.49 | 14.46% | 892.19% | -9.41% | -20.50% | |
72 Outperform | C$15.81B | 15.09 | 13.62% | 2.11% | 3.39% | 15.42% | |
72 Outperform | C$54.14B | 12.88 | 14.68% | 4.11% | 1.37% | 17.16% | |
71 Outperform | C$17.36B | 13.28 | 13.03% | 3.59% | 18.39% | 18.55% | |
68 Neutral | C$8.29B | 21.30 | 11.01% | 0.98% | 16.49% | -5.26% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | C$8.90B | 9.04 | 7.20% | 0.36% | 11.28% | 129.26% |
* Financial Sector Average
TSE:IAG
iA Financial Corporation Inc
175.41
46.66
36.24%
TSE:SLF
Sun Life Financial
97.74
19.94
25.62%
TSE:IGM
IGM Financial
74.42
33.29
80.93%
TSE:ELF
E-L Financial
17.10
4.61
36.89%
TSE:ONEX
ONEX Corporation
116.71
20.11
20.82%
TSE:DFY
Definity Financial Corp.
68.19
2.32
3.53%
iA Financial Corporation Inc Corporate Events
Business Operations and StrategyFinancial DisclosuresM&A Transactions
iA Financial Group Hits 2025 Targets and Lifts Profitability With Strong Q4
Positive
Feb 18, 2026
iA Financial Group reported strong fourth-quarter and full-year 2025 results, with core diluted EPS rising 16% year over year to $12.96 and core return on equity reaching 17.1% on a trailing 12‑month basis. The company also expanded assets u...
Dividends
iA Financial Corporation Declares Quarterly Dividend and Highlights DRIP Option
Positive
Feb 18, 2026
iA Financial Corporation Inc., parent of iA Financial Group, is a major Canadian insurance and wealth management provider with a significant presence in Canada and operations in the United States. The company, founded in 1892 and listed on the TSX...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.