Canada's iA Financial Q2 core EPS beats estimates on Wealth Management growth

iA Financial

04/08/2026 22:13

Overview
Canada insurance and wealth manager's Q2 core EPS rose 5% and beat analyst expectations
Net income attributed to common shareholders increased 20% year-over-year
Company repurchased and cancelled 1.85 mln shares for C$316 mln under buyback program

Outlook
IA Financial maintains 2026 core ROE target of 17%+ and organic capital generation of $700 mln+
Company expects medium-term core EPS growth of 10%+ and 5% annual average through 2026

Result Drivers
WEALTH MANAGEMENT - Wealth Management segment drove earnings growth, with core earnings up 37% YoY, supported by favourable markets and strong net segregated fund sales
ASSET GROWTH - 37% increase in assets under management and administration driven by net fund inflows, market performance, and RF Capital Group acquisition
SALES AND RETENTION - Net premiums, premium equivalents and deposits rose 25% YoY, reflecting strong sales and business retention across business units

Company press release: ID:nBw28Bhkna

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Core EPS
Beat
C$3.68
C$3.40 (7 Analysts)
Q2 EPS
 
C$4.28
 
Q2 Net Income Attributed to Common Shareholders
 
C$384 mln
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 7 "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$205.00, about 1.1% below its July 31 closing price of C$207.27
The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 12 three months ago

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Aug 4 - Voya Financial Q2 profit falls on lower investment income, severance costs

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(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.)