iA Financial Group posted a 19% year-over-year increase in core earnings per share in the first quarter of 2025, as strong sales in Canada and the US contributed to growth across business segments.
For the quarter ended March 31, the company reported core diluted earnings per share of CA$2.91, up from CA$2.44 a year earlier. Annualized core return on equity reached 15.8%, while the trailing 12-month figure stood at 16.1%.
Total premiums and deposits rose to CA$5.8 billion, a 19% increase from the first quarter of 2024. Assets under management and administration grew 15% year-over-year to CA$264 billion.
The company’s solvency ratio was 132%, and capital available for deployment stood at CA$1.4 billion. Book value per common share rose to CA$74.62, up 2% from the prior quarter and 8% from a year ago.
CEO Denis Ricard said the company entered 2025 with continued momentum following its 2024 performance, citing steady results across business lines in both countries. He pointed to growth in Canadian foundation businesses, including individual insurance, dealer services and segregated funds, as well as contributions from recent US acquisitions.
In the Canadian insurance segment, net income rose to CA$87 million from CA$83 million a year earlier. Core earnings increased to CA$100 million from CA$92 million a year ago, driven by higher expected insurance earnings and stronger results from non-insurance activities. The segment recorded a CA$4 million gain in insurance experience, as lower claims in auto and home insurance and improved morbidity in employee plans offset higher mortality.
Wealth management reported net income of CA$95 million, up from CA$88 million in the prior year. Core earnings rose to CA$106 million from CA$95 million. The increase reflected strong segregated fund sales, favorable market performance, and higher revenue from group savings and retirement products.
US operations also saw net income climb to CA$19 million from CA$12 million. Core earnings for the segment reached CA$30 million, up from CA$19 million a year ago. The improvement was attributed to contributions from the Prosperity blocks of business and the Vericity acquisition, which added CA$8 million to insurance results.
Meanwhile, Investment segment net income dropped to CA$35 million from CA$100 million during the quarter. Core earnings remained stable at CA$85 million. Market-related adjustments weighed on results, with losses in public and private equity and investment property valuations partially offset by gains from interest rate and credit spread changes.
The corporate segment reported a net loss of CA$50 million, consistent with the prior year. Core losses were CA$48 million, with pre-tax expenses of CA$65 million in line with quarterly guidance.
