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iA Financial Corporation Inc (TSE:IAG)
TSX:IAG
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iA Financial Corporation Inc (IAG) AI Stock Analysis

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TSE:IAG

iA Financial Corporation Inc

(TSX:IAG)

Rating:75Outperform
Price Target:
C$160.00
▲(12.33% Upside)
iA Financial Corporation Inc. scores well due to its strong financial performance and positive earnings call, which highlight robust growth and strategic initiatives. The valuation is reasonable, and technical indicators suggest a neutral trend. The company's commitment to shareholder value through dividends and strategic acquisitions further enhances its attractiveness.
Positive Factors
Earnings Performance
Q4 results reflect good quality beat, as core EPS beats consensus estimates, indicating strong performance.
Growth and Profitability
Increased target price multiple reflects continued solid growth and profitability, with core EPS growth in line with medium-term targets.
Negative Factors
Earnings Report
Reported EPS was weaker due to higher one-off/unusual items and actuarial assumption changes, despite some offsetting benefits.

iA Financial Corporation Inc (IAG) vs. iShares MSCI Canada ETF (EWC)

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 Inc generates revenue primarily through the sale of insurance policies and wealth management services. The company's key revenue streams include premiums collected from life and health insurance policies, fees from asset management and advisory services, and premiums from group and property and casualty insurance products. iA Financial also earns through investment income, derived from the management of its investment portfolio, which includes bonds, stocks, and real estate. Significant partnerships with brokers, financial advisors, and other distribution networks help expand its reach and customer base, contributing to its earnings. Additionally, the company's focus on digital transformation and innovation aims to enhance customer experience and operational efficiency, further supporting its financial performance.

iA Financial Corporation Inc Earnings Call Summary

Earnings Call Date:Aug 05, 2025
(Q2-2025)
|
% Change Since: 2.88%|
Next Earnings Date:Nov 04, 2025
Earnings Call Sentiment Positive
The earnings call was predominantly positive, highlighting strong financial performance, strategic acquisitions, and significant growth in U.S. operations. Despite minor declines in mutual fund sales and Group Savings and Retirement, the company's robust capital position and strategic acquisitions suggest continued growth and stability.
Q2-2025 Updates
Positive Updates
Strong Core Earnings and ROE
Core EPS reached $3.49, up 27% year-over-year. Core ROE was 17% on a trailing 12-month basis, meeting the 2027 target ahead of schedule.
Growth in U.S. Operations
Individual insurance sales in the U.S. increased by 59% year-over-year, reaching USD 78 million, surpassing Canadian sales for the first time.
Robust Capital Position
Solvency ratio at 138%, supported by strong organic capital generation. Book value per share up 9% year-over-year, with a 10% dividend increase announced.
Successful Strategic Acquisition
Announced the acquisition of RF Capital, a significant move to accelerate growth in the high net worth segment, expected to be accretive to core EPS by at least $0.15 in year 2.
Positive Wealth Management Results
Assets under management rose by 18% year-over-year. Gross fund sales up 8%, with strong net sales of $670 million.
Negative Updates
Mutual Fund Sales Decline
Mutual fund gross sales declined slightly, with net outflows and other individual savings products down 21%.
Lower Group Savings and Retirement Sales
Total sales in Group Savings and Retirement were down 4%, despite a rise in total assets under management.
Company Guidance
During the iA Financial Group's Q2 2025 earnings call, the company reported robust financial performance with core EPS reaching $3.49, a 27% increase year-over-year. Core ROE was at 17%, meeting the 2027 target ahead of schedule. Total premiums and deposits rose by 4% year-over-year, and assets under management and administration grew by 16%. The solvency ratio was strong at 138%, supported by organic capital generation. Noteworthy segments included Canadian Dealer Services and iA Auto and Home, with sales up 16% and 10% respectively. U.S. operations saw a 59% increase in individual insurance sales. The acquisition of RF Capital, valued at $597 million, is expected to be accretive to core EPS by at least $0.15 in year two. iA Financial Group also announced a 10% dividend increase, emphasizing its commitment to shareholder value.

iA Financial Corporation Inc Financial Statement Overview

Summary
iA Financial Corporation Inc demonstrates a solid financial position with strong cash flow generation and improved profitability. Despite a decline in revenue, the company has enhanced its net income, reflecting efficient cost management. The balance sheet remains stable with a healthy equity base and manageable debt levels. Overall, the company is well-positioned financially, though it should focus on improving revenue growth and operating margins.
Income Statement
78
Positive
The company has shown improvement in its gross profit margin and net profit margin over the TTM, indicating efficient operations and cost management. Although revenue has decreased in the TTM compared to the previous annual report, the net income has increased, suggesting better profitability. However, the EBIT margin declined significantly, which may indicate pressure on operating income.
Balance Sheet
72
Positive
The company's balance sheet shows a solid equity base with a manageable debt level, as indicated by a favorable debt-to-equity ratio. The equity ratio remains stable, reflecting a good proportion of equity financing. However, given the industry context, the ROE is moderate, suggesting room for improvement in generating returns from equity.
Cash Flow
85
Very Positive
The cash flow analysis reveals a strong free cash flow growth in the TTM, indicating effective cash management and operational efficiency. The operating cash flow to net income ratio is robust, highlighting strong cash generation relative to accounting profits. However, the free cash flow to net income ratio suggests potential fluctuations in free cash flow generation.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue10.17B11.58B7.93B6.55B15.51B17.70B
Gross Profit8.66B11.58B11.23B6.55B15.51B17.70B
EBITDA1.52B1.61B1.38B799.00M1.39B998.00M
Net Income923.00M962.00M789.00M800.00M859.00M632.00M
Balance Sheet
Total Assets111.68B109.86B93.85B87.42B94.66B86.47B
Cash, Cash Equivalents and Short-Term Investments1.79B1.57B1.38B1.36B1.55B1.95B
Total Debt1.50B2.09B1.87B2.07B1.65B1.67B
Total Liabilities104.11B102.39B86.81B80.28B87.41B79.95B
Stockholders Equity7.56B7.47B7.04B7.14B7.25B6.51B
Cash Flow
Free Cash Flow2.09B763.00M1.06B326.00M-63.00M1.68B
Operating Cash Flow2.36B1.04B1.34B613.00M185.00M1.86B
Investing Cash Flow-1.36B-491.00M-307.00M-287.00M-294.00M-1.14B
Financing Cash Flow-694.00M-397.00M-1.01B-525.00M-294.00M111.00M

iA Financial Corporation Inc Technical Analysis

Technical Analysis Sentiment
Positive
Last Price142.44
Price Trends
50DMA
142.88
Negative
100DMA
137.60
Positive
200DMA
132.79
Positive
Market Momentum
MACD
-1.04
Positive
RSI
51.29
Neutral
STOCH
65.53
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 142.44 is above the 20-day moving average (MA) of 142.31, below the 50-day MA of 142.88, and above the 200-day MA of 132.79, indicating a neutral trend. The MACD of -1.04 indicates Positive momentum. The RSI at 51.29 is Neutral, neither overbought nor oversold. The STOCH value of 65.53 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

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
C$12.85B12.8213.43%2.47%-4.55%42.41%
67
Neutral
$17.02B11.609.79%3.95%10.61%2.06%
$53.58B13.8811.57%4.00%
$34.45B15.3813.18%3.93%
77
Outperform
C$51.28B22.0413.23%1.79%5.25%15.06%
74
Outperform
C$50.09B13.5314.19%4.30%15.27%4.72%
71
Outperform
C$36.29B13.4811.92%5.24%7.63%8.84%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:IAG
iA Financial Corporation Inc
142.44
45.93
47.59%
MFC
Manulife Financial
30.07
5.99
24.88%
SLF
Sun Life Financial
61.49
15.35
33.27%
TSE:GWO
Great-West Lifeco
53.00
13.57
34.42%
TSE:IFC
Intact Financial Corporation
283.73
42.30
17.52%
TSE:POW
Power Corp of Canada
57.23
22.28
63.75%

iA Financial Corporation Inc Corporate Events

Dividends
iA Financial Corporation Increases Quarterly Dividend by 10%
Positive
Aug 5, 2025

iA Financial Corporation Inc. has announced a 10% increase in its quarterly dividend, raising it to $0.9900 per common share, payable on September 15, 2025. This move reflects the company’s robust financial health and commitment to providing value to its shareholders, potentially enhancing its attractiveness to investors and strengthening its position in the financial services industry.

The most recent analyst rating on (TSE:IAG) stock is a Buy with a C$150.00 price target. To see the full list of analyst forecasts on iA Financial Corporation Inc stock, see the TSE:IAG Stock Forecast page.

M&A TransactionsDividendsFinancial Disclosures
iA Financial Group Reports Robust Q2 Results and Dividend Increase
Positive
Aug 5, 2025

iA Financial Group reported a strong second quarter with a 27% year-over-year increase in core earnings per share and a core return on equity of 17.0%, aligning with its 2027 target. The company announced a 10% increase in its common dividend and plans to acquire RF Capital Group Inc., indicating a strategic move to enhance its wealth distribution capabilities and deliver long-term value to shareholders.

The most recent analyst rating on (TSE:IAG) stock is a Buy with a C$150.00 price target. To see the full list of analyst forecasts on iA Financial Corporation Inc stock, see the TSE:IAG Stock Forecast page.

Private Placements and FinancingBusiness Operations and Strategy
iA Financial Completes $400 Million Preferred Shares Offering
Positive
Jun 23, 2025

iA Financial Corporation Inc. has successfully completed a $400 million offering of 6.435% Non-Cumulative 5-Year Rate Reset Class A Preferred Shares Series C. The shares, rated ‘Pfd-2’ by Morningstar DBRS and ‘BBB+/P-2(High)’ by S&P Global Ratings, were sold to institutional investors through a syndicate led by RBC Capital Markets, National Bank Financial Markets, and TD Securities. This offering, under the company’s short form base shelf prospectus, enhances iA Financial’s capital base, potentially strengthening its market position and providing more resources for strategic growth.

The most recent analyst rating on (TSE:IAG) stock is a Buy with a C$150.00 price target. To see the full list of analyst forecasts on iA Financial Corporation Inc stock, see the TSE:IAG Stock Forecast page.

Private Placements and FinancingBusiness Operations and Strategy
iA Financial Group Launches $400 Million Preferred Shares Offering
Positive
Jun 17, 2025

iA Financial Corporation Inc. has announced a $400 million offering of Non-Cumulative 5-Year Rate Reset Class A Preferred Shares Series C, aimed at institutional investors. The proceeds from this offering are intended for general corporate purposes, potentially including investments in subsidiaries and debt repayment, which could enhance the company’s financial flexibility and strategic positioning.

The most recent analyst rating on (TSE:IAG) stock is a Buy with a C$150.00 price target. To see the full list of analyst forecasts on iA Financial Corporation Inc stock, see the TSE:IAG Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
iA Financial Group Reports Strong Q1 2025 Results with 19% EPS Growth
Positive
May 7, 2025

iA Financial Group reported strong financial results for the first quarter of 2025, with core earnings per share increasing by 19% year-over-year and a robust solvency ratio of 132%. The company attributes its continued profitability and growth to strong sales momentum across its business units in Canada and the U.S., supported by a solid capital position and flexible balance sheet. This performance underscores the strength of iA Financial Group’s diversified business model and positions the company well to achieve its new financial targets.

Dividends
iA Financial Corporation Declares Quarterly Dividend
Positive
May 7, 2025

iA Financial Corporation Inc. has announced a quarterly dividend of $0.9000 per common share for the quarter ending March 31, 2025, payable on June 16, 2025, to shareholders of record by May 23, 2025. This announcement underscores the company’s ongoing commitment to returning value to its shareholders and may impact investor relations positively by encouraging participation in its Dividend Reinvestment and Share Purchase Plan.

Legal ProceedingsRegulatory Filings and Compliance
iA Financial Group Warns Against Discounted Mini-Tender Offer by Ocehan LLC
Negative
May 7, 2025

iA Financial Group has issued a warning to its investors regarding an unsolicited mini-tender offer from Ocehan LLC, which aims to purchase a small percentage of iA Financial’s common shares at a price significantly below the current market value. The offer, which is priced at $93.30 per share, represents a nearly 30% discount to the closing price on the Toronto Stock Exchange as of May 6, 2025. iA Financial Group is not affiliated with Ocehan and advises shareholders to be cautious, review the offer documents thoroughly, and consult with their investment advisors. The company highlights the risks associated with mini-tender offers, which often bypass standard regulatory requirements, potentially leading investors to make uninformed decisions.

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.Date of analysis: Aug 07, 2025