Canada's IA Financial Q1 core EPS rises, raises dividend

iA Financial

05/05/2026 22:29

Overview

Canada insurance and wealth manager's Q1 core EPS up 12% yr/yr, slightly missed analyst expectations

Q1 net income attributed to common shareholders and reported EPS declined 26% and 25% yr/yr, respectively

Company raised quarterly dividend by 11% and expanded share buyback program to 8% of public float

Outlook

IA Financial maintains 2026 core ROE target at 17%+

Company expects 2026 organic capital generation of C$700 mln+

IA Financial revises medium-term core effective tax rate outlook to 21%-23%

Result Drivers

WEALTH MANAGEMENT MOMENTUM - Strong segregated fund sales, favourable markets, and the RF Capital Group acquisition drove 24% core earnings growth in Wealth Management

INSURANCE SALES GROWTH - Individual insurance policies issued in Canada rose 5% and P&C insurance sales increased, offsetting some softness in group and international student insurance

MARKET AND TAX IMPACTS - Unfavourable market-related impacts and a $40 mln tax adjustment weighed on reported net income

Company press release: ID:nBwbsF14na

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Core EPS
Miss
C$3.25
C$3.30 (7 Analysts)
Q1 EPS
C$1.49
Q1 Net Income
C$137 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 6 "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$181.00, about 3.1% above its May 4 closing price of C$175.60

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

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)