Brief: IA Financial Q2 Adjusted EPS CAD 3.49 Vs. IBES Estimate CAD 3.06

iA Financial

05/08/2025 22:05

Overview

IA Financial Q2 core EPS rises 27% YoY, beating analyst expectations, per LSEG data

EPS for Q2 increases 62% YoY, reflecting strong profitability

Company announces 10% dividend increase

Outlook

IA Financial expects RF Capital acquisition to be neutral to core earnings in first year

Upon deal completion, company projects RF Capital deal to add over C$40 bln in assets under administration

Company anticipates core EPS accretion of C$0.15 from RF Capital deal in second year

Result Drivers

EXPERIENCE GAINS - Significant experience gains across business units drove strong profitability, per CFO Éric Jobin

SALES MOMENTUM - Strong sales in Canada and U.S. contributed to 16% growth in assets under management and administration

CAPITAL GENERATION - Record quarterly organic capital generation of C$200 mln strengthened capital position

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Adjusted EPS
Beat
C$3.49
C$3.06 (6 Analysts)
Q2 EPS
C$3.43
Q2 Net Income
C$321 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the life & health insurance peer group is "buy"

Wall Street's median 12-month price target for iA Financial Corporation Inc is C$144.50, about 6.3% above its August 1 closing price of C$135.34

The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release: ID:nBw91sbfya

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)