Strong inflows in group insurance a main driver for the firm
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With earnings season drawing to a close, Industrial Alliance is the latest life and health insurer to report its performance for Q1 2018. It made for happy reading for iA shareholders as the company announced net income attributed to common shareholders of $139.2 million, diluted earnings per common share of $1.29 and return on shareholders' equity for the last twelve months of 11.6%.
"The first quarter of 2018 was excellent with EPS exceeding both our guidance and same-quarter results a year ago," said Yvon Charest, president and CEO of iA Financial Group. "In addition to favourable policyholder experience, we had a strong contribution from HollisWealth in our retail wealth operations, which is consistent with our strategy to develop distribution as a business. We look forward to similar success from three other acquisitions completed since the beginning of 2018 — PPI and ABEX in Canada and DAC in the US — that are immediately accretive to earnings."
Breaking down its three main business lines, IA saw premiums and deposits rise to $2.9 billion, an increase of 5%, which was driven by strong inflows in the group insurance and wealth sectors.
Retail insurance in Canada reported total sales of $46.7 million, group insurance had total sales of $206.7 million, and in its US business, individual insurance sales amounted to US$17.3 million
This period is also notable in that it is the first quarter for IA under the new capital requirements for insurers, as Charest outlined.
"This quarter marks the transition to a new capital regime that is more robust," he said. "With our solvency ratio positioned at 121% at quarter-end, the overall impact of the new formula has been favourable for iA Financial Group and speaks to the strength of our risk management. Backed by our balance sheet flexibility, we remain focused on seeking opportunities to grow our franchise in North America, while maintaining our track record of value creation for all our stakeholders."
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