iA Financial Corporation Inc.

Q2 2026 core earnings were $330 million. EPS was $4.28, up 25% year over year, while core EPS was $3.68, up 5% year over year. Core ROE was 18.5% on a quarterly annualized basis and 17.5% on a trailing 12-month basis. Net income was $384 million, supported by favorable market-related impacts. Net premiums, premium equivalents and deposits were $6.3 billion, up 25% year over year, and assets under management and administration grew 37% over the last 12 months. The solvency ratio was 137%, capital available for deployment was $1.1 billion, organic capital generation was $180 million in the quarter and $335 million year to date, and $347 million was deployed through share buybacks. For 2026, management reiterated a target of more than $700 million of organic capital generation and said core ROE is already meeting the 17%+ target. Core effective tax rate was 21.2% in Q2, and core other expenses were $65 million before taxes, at the low end of the quarterly target range. Management did not provide full-year revenue or EPS guidance, but said capital generation is usually stronger in the second half and remains on track.

Denis Ricard emphasized that the quarter showed the value of iA’s diversified model, with earnings growth not concentrated in one area and Wealth Management becoming a more important driver of results. He repeatedly framed the company as focused on disciplined execution, profitable growth, business quality and sustainable returns. On capital allocation, he said iA remains well positioned to return capital while keeping flexibility for growth and potential acquisitions, though any large deal would have to be highly strategic and a strong fit.

Eric Jobin highlighted strong profitability, saying core earnings were $330 million and core ROE was 18.5% quarterly annualized and 17.5% over the last 12 months. He said Wealth Management’s core earnings rose 37% year over year to $155 million, helped by segregated fund inflows, favorable markets and $13 million from RF Capital, while Insurance Canada earned $128 million and the U.S. earned $24 million. On capital, he pointed to a 137% solvency ratio and $1.1 billion of deployable capital, noting the ratio improved by 3 points mainly from the May capital issuance, organic capital generation and macro impacts, partly offset by buybacks, dividends and growth investment. He also said Q2 core other expenses were $65 million before taxes and that third- and fourth-quarter expenses should trend toward the midpoint of the target range, while the core tax rate should sit toward the upper end of the 21% to 23% target range in the back half of the year.

Analysts focused on the softer U.S. dealer business, weaker Canadian individual insurance sales and the jump in Wealth Management earnings. Management said the U.S. dealer business is being fixed through repricing, operational changes and a restructured sales team, but improvement will take time; Denis Ricard said it is currently below long-term potential but should become a tailwind in 2027 and 2028. On wealth, management said the quarter was helped by both structural/organic growth and favorable markets, roughly split 50-50, so investors should not extrapolate the same pace indefinitely. They also said higher mortality experience in the U.S. was a statistical fluctuation, not a sign of a broader assumption problem, and it does not change capital deployment appetite.