Industrial Alliance reports 3Q results

Industrial Alliance Insurance and Financial Services has reported 3Q 2017 earnings, with net income attributed to common shareholders of $144.9 million, diluted earnings per common share (EPS) of $1.35 and return on shareholders’ equity (ROE) for the last twelve months of 12.5%.

“This quarter marked some important milestones in the expansion of our financial services network,” said Yvon Charest, president and CEO of iA Financial Group. “We completed our acquisition of HollisWealth that firmly establishes iA Financial Group among the largest independent wealth management advisory firms in Canada. In the US, we expanded our geographic footprint and entered a second business segment by acquiring a manufacturer and distributor of extended warranties for vehicles. With these strategic initiatives and the momentum in our existing insurance and wealth management operations, we are laying a strong foundation for continued value creation in terms of book value and dividend growth.”

“I am pleased with our third quarter that finished at the top of our EPS guidance,” added René Chabot, executive vice-president, CFO and chief actuary. “With the exception of specific items like the HollisWealth integration costs and the hedging gain, all lines of business delivered close to expectations. In addition, we had a strong contribution from income on capital, especially iA Auto and Home that had a strong quarter after a challenging start to the year.”

• Reported EPS and core EPS1 of $1.35 at top of guidance ($1.25 to $1.35 EPS)
• · Book value per share of $43.27 (+12% YoY)
• · Dividend increased to $0.38 per common share (+$0.03)
• · Addition of HollisWealth creates leading wealth distribution platform across Canada
• · Acquisition of car warranty business (DAC) expands U.S. footprint
• Solvency ratio of 213% (205% post-DAC closing)