Industrial Alliance Insurance and Financial Services Inc. reported, on May 10, net income attributed to common shareholders of $139.2 million, a 26 per cent increase compared to $110.3 million for Q1 2017.
The company reported diluted earnings per common share (EPS) of $1.29 in Q1 2018, up from $1.03 for Q1 2017.
Return on shareholders’ equity for the last twelve months stood at 11.6 per cent.
“The first quarter of 2018 was excellent with EPS exceeding both our guidance and same-quarter results a year ago,” stated Yvon Charest, President and CEO of iA Financial Group. “In addition to favourable policyholder experience, we had a strong contribution from HollisWealth in our retail wealth operations, which is consistent with our strategy to develop distribution as a business. We look forward to similar success from three other acquisitions completed since the beginning of 2018 — PPI and ABEX in Canada and DAC in the US — that are immediately accretive to earnings.”
Charest also noted that Q1 2018 marks the transition to a new capital regime. “With our solvency ratio positioned at 121 per cent at quarter-end, the overall impact of the new formula has been favourable for iA Financial Group and speaks to the strength of our risk management. Backed by our balance sheet flexibility, we remain focused on seeking opportunities to grow our franchise in North America, while maintaining our track record of value creation for all our stakeholders.”
Canadian retail insurance sector results
For its retail insurance sector in Canada, Industrial Alliance reported total sales of $46.7 million (including $5.0 million for adjustable disability) in Q1 2018, comparable to its Q1 2017 sales.
Seg fund sales
“In retail wealth management, gross sales of segregated funds grew by 11 per cent over the previous year to $617.6 million, with net sales increasing to $219.7 million from $164.7 million in 2017,” states the company, adding that it continues to hold first position for net seg fund sales in Canada and third position for assets.
Gross sales of mutual funds stood at $670.1 million compared with $783.8 million a year ago, and net sales of $45.8 million compared with $200.0 million a year earlier.