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iA Financial Corporation Inc (TSE:IAG)
TSX:IAG
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iA Financial Corporation Inc
(TSX:IAG)
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Rating:71Outperform
Price Target:
C$189.00
â–²(6.04% Upside)
iA Financial Corporation Inc's overall stock score is driven by strong earnings call results and positive technical indicators. The company's robust profitability and efficient operations are offset by concerns over declining revenue growth and cash flow generation. The valuation is fair, and the stock shows bullish momentum, making it an attractive option for investors seeking growth and income.
Positive Factors
Strong Core EPS and ROE Performance
The robust increase in core EPS and ROE indicates strong profitability and efficient capital use, supporting long-term financial health and shareholder value.
Successful RF Capital Acquisition
The acquisition enhances market position in wealth management, expected to be accretive to EPS, and supports growth in the high net worth segment.
Robust Capital Position
A strong solvency ratio and available capital provide financial flexibility and security, enabling strategic investments and acquisitions.
Negative Factors
Declining Revenue Growth
Declining revenue growth can limit future profitability and expansion, challenging the company to find new growth avenues to sustain its market position.
Challenges in Group Savings and Retirement
Significant sales decline in Group Savings and Retirement indicates competitive pressures or market challenges, affecting long-term segment growth.
Free Cash Flow Decline
A decline in free cash flow generation can hinder the company's ability to invest in growth opportunities and manage debt, impacting financial stability.
iA Financial Corporation Inc (IAG) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$16.60B
Dividend Yield2.11%
Average Volume (3M)249.62K
Price to Earnings (P/E)15.2
Beta (1Y)1.25
Revenue Growth-25.13%
EPS Growth16.40%
CountryCA
Employees7,000
SectorFinancial
Sector Strength70
IndustryInsurance - Diversified
Share Statistics
EPS (TTM)3.47
Shares Outstanding91,735,120
10 Day Avg. Volume208,907
30 Day Avg. Volume249,624
Financial Highlights & Ratios
PEG Ratio0.44
Price to Book (P/B)1.71
Price to Sales (P/S)1.19
P/FCF Ratio16.77
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$170.20Price Target Upside-4.51% Downside
Rating ConsensusHold
Number of Analyst Covering5
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
iA Financial Corporation Inc Business Overview & Revenue Model
Company DescriptioniA 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 Insurance, Individual Wealth Management, Group Insurance, Group Savings and Retirement, US Operations, and Other segments. It offers life, health, disability, and mortgage insurance products, as well as individual products and services for savings plans, securities brokerage, trust operations, and mutual funds. The company also provides group insurance products and services, including accidental death and dismemberment, dental care, short and long-term disability insurance, products for employee plans; creditor and replacement insurance, replacement warranties, extended warranties, and other products for dealer services; and specialized products. In addition, the company offers group products and services for savings plans, retirement, and segregated funds. Further, the company provides auto and home insurance products, as well as offers asset management and financing services. The company was founded in 1892 and is headquartered in Québec, Canada.
How the Company Makes MoneyiA Financial Corporation generates revenue through multiple key streams. The primary source of income comes from the premiums collected on life and health insurance products, which are paid by policyholders. Additionally, the company earns money through investment income generated from its portfolio of invested assets, including stocks, bonds, and real estate. The wealth management division contributes to revenue via management fees on mutual funds, segregated funds, and other investment products. iA Financial Corporation also has significant partnerships with various financial advisors and institutions that facilitate the distribution of its products, further enhancing its market reach and revenue potential. Other factors contributing to its earnings include a focus on cost management and operational efficiency, which enable the company to maintain healthy profit margins.
iA Financial Corporation Inc Earnings Call Summary
Earnings Call Date:Nov 04, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 17, 2026
Earnings Call Sentiment Positive
The earnings call presented strong financial results with significant achievements such as the RF Capital acquisition and robust core EPS and ROE growth. Sales and capital position are robust, but challenges remain in specific segments like Individual Insurance and Group Savings and Retirement. Overall, the positive aspects significantly outweigh the challenges.Q3-2025 Updates
Positive Updates
Strong Core EPS and ROE Performance
Core EPS reached $3.47, up 18% year-over-year, and core ROE stood at 17.2% on a trailing 12-month basis, meeting the 2027 target of 17% plus.
Successful RF Capital Acquisition
Completed the acquisition of RF Capital Group, expanding presence in the high net worth segment and expected to be accretive to EPS by $0.15 in year 1.
Robust Capital Position
Solvency ratio of 138% at the end of Q3, with capital available for deployment at approximately $1.7 billion, despite the RF Capital acquisition.
Strong Sales Performance
Premiums and deposits up 6% year-over-year, total assets under management and administration up 15%.
Positive Trends in Wealth Management
Gross sales of SEG fund rose 23% year-over-year, and mutual funds gross sales increased by 58%.
Negative Updates
Individual Insurance Sales Decline
Individual Insurance sales reached $102 million, marking a 1% year-over-year decline, despite an increase in net premiums by 11%.
Challenges in Group Savings and Retirement
Total sales reached $607 million compared to $900 million a year earlier, with sales of accumulation products and insured annuities lower this quarter.
Dealer Services Attrition
Dealer Services sales remained stable at USD 286 million, with dealer group attrition partly driven by repricing efforts.
Company Guidance
During the iA Financial Group's third-quarter 2025 earnings call, several key financial metrics were highlighted. The company reported a strong core EPS of $3.47, reflecting an 18% increase year-over-year, and a core ROE of 17.2%, meeting their 2027 target. Premiums and deposits rose by 6% year-over-year, with assets under management and administration up by 15%. The solvency ratio stood robust at 138%, supported by $170 million in organic capital generation, while the pro forma solvency ratio adjusted for the RF Capital acquisition and AMF-revised CARLI Guideline was estimated at 135%. Total capital available for deployment was approximately $1.7 billion, reducing to $1.3 billion pro forma. The book value per share increased by 11% year-over-year to $79.22. In insurance, individual insurance sales reached $102 million, although slightly declining by 1% year-over-year, and dealer services sales grew by 9% to $214 million. Wealth management saw net fund sales surpassing $1.1 billion, with SEG fund gross sales rising 23% year-over-year. In the U.S., individual insurance sales increased by 15% year-over-year, highlighting growth in core markets.iA Financial Corporation Inc Financial Statement Overview
Summary
iA Financial Corporation Inc demonstrates strong financial health with consistent revenue growth and solid profitability margins. The balance sheet is well-managed with low leverage, but the recent decline in free cash flow growth warrants attention.Income Statement
iA Financial Corporation Inc shows a solid income statement with consistent revenue growth, evidenced by a 3.18% increase in TTM. The company maintains healthy margins, with a gross profit margin of 85.14% and a net profit margin of 9.08% in TTM. However, the EBIT margin has slightly decreased over the years, indicating potential cost pressures.Balance Sheet
The balance sheet is strong, with a low debt-to-equity ratio of 0.20 in TTM, indicating prudent financial leverage. The return on equity is robust at 12.42%, reflecting efficient use of equity capital. The equity ratio is stable, suggesting a solid capital structure.Cash Flow
Cash flow analysis reveals some concerns, with a significant decline in free cash flow growth of -51.91% in TTM. However, the free cash flow to net income ratio remains healthy at 0.89, indicating good cash conversion. The operating cash flow to net income ratio is not available for TTM, which limits full assessment.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.69B | 7.93B | 8.71B | -3.50B | 13.40B | 17.68B |
| Gross Profit | 3.84B | 3.70B | 3.14B | 12.00M | 4.35B | 5.55B |
| EBITDA | 1.77B | 1.61B | 1.35B | 656.00M | 1.60B | 1.12B |
| Net Income | 1.12B | 962.00M | 789.00M | 334.00M | 859.00M | 632.00M |
Balance Sheet | ||||||
| Total Assets | 119.89B | 109.86B | 93.85B | 87.42B | 94.66B | 86.47B |
| Cash, Cash Equivalents and Short-Term Investments | 2.32B | 1.57B | 1.38B | 1.36B | 1.55B | 1.95B |
| Total Debt | 1.50B | 2.09B | 1.87B | 2.07B | 1.65B | 1.67B |
| Total Liabilities | 111.59B | 102.39B | 86.81B | 80.28B | 87.41B | 79.95B |
| Stockholders Equity | 8.30B | 7.47B | 7.04B | 7.14B | 7.25B | 6.51B |
Cash Flow | ||||||
| Free Cash Flow | 575.00M | 763.00M | 1.06B | 326.00M | -63.00M | 1.68B |
| Operating Cash Flow | 808.00M | 1.04B | 1.34B | 613.00M | 185.00M | 1.86B |
| Investing Cash Flow | -285.00M | -491.00M | -307.00M | -287.00M | -294.00M | -1.14B |
| Financing Cash Flow | -315.00M | -397.00M | -1.01B | -525.00M | -294.00M | 111.00M |
iA Financial Corporation Inc Technical Analysis
Positive
178.24
Price Trends
169.40
Positive
161.56
Positive
149.08
Positive
Market Momentum
3.26
Positive
59.56
Neutral
72.52
Neutral
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 178.24 is above the 20-day moving average (MA) of 176.88, above the 50-day MA of 169.40, and above the 200-day MA of 149.08, indicating a bullish trend. The MACD of 3.26 indicates Positive momentum. The RSI at 59.56 is Neutral, neither overbought nor oversold. The STOCH value of 72.52 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | C$9.36B | 18.44 | 13.44% | 0.98% | 19.80% | -12.93% | |
76 Outperform | $15.01B | 14.61 | 12.37% | 3.59% | -1.02% | -5.65% | |
73 Outperform | C$5.76B | 4.41 | 15.37% | 892.19% | -31.32% | -26.23% | |
71 Outperform | C$16.60B | 15.23 | 14.34% | 2.11% | -25.13% | 16.40% | |
69 Neutral | C$7.98B | 13.35 | 5.15% | 0.36% | 2.46% | -27.48% | |
68 Neutral | C$48.48B | 16.47 | 11.96% | 4.11% | -19.88% | -13.92% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
TSE:IAG
iA Financial Corporation Inc
178.24
51.10
40.19%
TSE:SLF
Sun Life Financial
86.85
7.60
9.59%
TSE:IGM
IGM Financial
63.71
21.46
50.79%
TSE:ELF
E-L Financial
16.60
4.98
42.86%
TSE:ONEX
ONEX Corporation
116.55
1.85
1.61%
TSE:DFY
Definity Financial Corp.
75.40
20.67
37.77%
iA Financial Corporation Inc Corporate Events
Business Operations and StrategyStock BuybackFinancial DisclosuresM&A Transactions
iA Financial Group Reports Strong Q3 Results and Strategic Acquisition
Positive
Nov 4, 2025
iA Financial Group reported strong third-quarter results with a significant increase in profitability, driven by robust sales in wealth management and a solid capital position. The acquisition of RF Capital Group Inc. is expected to enhance their wealth management distribution capabilities, further solidifying their market position. The company also announced a renewal of its NCIB program, indicating a focus on shareholder value.
The most recent analyst rating on (TSE:IAG) stock is a Buy with a C$173.00 price target. To see the full list of analyst forecasts on iA Financial Corporation Inc stock, see the TSE:IAG Stock Forecast page.
Dividends
iA Financial Corporation Declares Dividends for Common and Preferred Shares
Positive
Nov 4, 2025
iA Financial Corporation Inc. announced the payment of a quarterly dividend of $0.9900 per common share and a semi-annual dividend of $33.4091096 per preferred share. These dividends, payable in December 2025, reflect the company’s ongoing commitment to returning value to its shareholders. The announcement underscores iA Financial’s stable financial position and its strategic focus on maintaining shareholder trust and engagement through consistent dividend payments.
The most recent analyst rating on (TSE:IAG) stock is a Buy with a C$173.00 price target. To see the full list of analyst forecasts on iA Financial Corporation Inc stock, see the TSE:IAG Stock Forecast page.
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.