iA Financial Group has introduced new market guidance at its investor event, outlining key financial targets aimed at driving long-term growth.
The new guidance comes amid positive financial results in the fourth quarter of 2024. The company emphasized its focus on disciplined execution, capital efficiency and strategic expansion in both Canada and the US.
The updated market guidance includes a target of more than 10% medium-term annual average growth in core earnings per common share. Meanwhile, core return on common shareholder’s equity is projected to exceed 17% by 2027.
Organic capital generation is expected to surpass $650 million in 2025, while the core dividend payout ratio is set within a range of 25% to 35%.
Denis Ricard (pictured), president and CEO of iA Financial Group, highlighted the company’ strong track record and its ability to accelerate growth. “We have achieved very strong growth in recent years, owing to our different way of doing things, and we are ready to accelerate our growth trajectory even further,” Ricard said.
Meanwhile, Éric Jobin, executive vice president, CFO and chief actuary, reinforced the company’s focus on financial discipline. He said that disciplined execution and prudent, capita-efficient management will be instrumental in meeting the new “ambitious” market targets.
Recently, the company recently reported a 30% year-over-year increase in Q4 core earnings to $3.04 per diluted share.
During the quarter, Ricard said that the company was able to deliver an “impressive” 39% growth in premiums and deposits compared with the year-ago period. “This solid result was driven by profitable sales that led our core ROE to grow to nearly 16% for the year,” he added.
As of Dec. 31, iA Financial’s solvency ratio was 139%, compared with 140% in the previous quarter and 145% a year earlier. The one percentage point decline was attributed to non-organic factors, including the year-end assumption review, management actions and macroeconomic variations, among others.
