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iA Financial Corporation Inc
(TSX:IAG)
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Rating:79Outperform
Price Target:
C$244.00
â–²(22.54% Upside)
Action:Reiterated
Date:08/07/26
The score is driven primarily by solid financial performance (strong growth, healthy profitability, low leverage, and good cash conversion) and a bullish technical backdrop (price above key moving averages with positive MACD). The latest earnings call supports the outlook with reiterated targets, strong ROE and capital strength, partially offset by specific weakness in U.S./Dealer Services and some capital deployment constraints. Valuation is acceptable but not compelling given the P/E and a modest dividend yield.
Positive Factors
Strong growth in premiums, deposits and assets
Broad growth across premiums, deposits and assets can expand recurring insurance and fee income. The diversified increase, particularly in wealth assets, supports operating scale and strengthens the company’s longer-term earnings base.
Negative Factors
Earnings weakness in U.S. operations and Dealer Services
Weak U.S. earnings and underperforming Dealer Services indicate execution and profitability challenges in important operations. Restructuring and repricing may help, but a gradual recovery could constrain consolidated earnings growth over coming quarters.
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Positive Factors
Negative Factors
Strong growth in premiums, deposits and assets
Broad growth across premiums, deposits and assets can expand recurring insurance and fee income. The diversified increase, particularly in wealth assets, supports operating scale and strengthens the company’s longer-term earnings base.
Read all positive factors
iA Financial Corporation Inc (IAG) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$17.90B
Dividend Yield2.05%
Average Volume (3M)305.47K
Price to Earnings (P/E)17.4
Beta (1Y)0.95
Revenue Growth13.06%
EPS Growth8.42%
CountryCA
Employees10,347
SectorFinancial
Sector Strength70
IndustryInsurance - Diversified
Share Statistics
EPS (TTM)11.72
Shares Outstanding87,794,990
10 Day Avg. Volume298,386
30 Day Avg. Volume305,466
Financial Highlights & Ratios
PEG Ratio1.02
Price to Book (P/B)2.00
Price to Sales (P/S)1.46
P/FCF Ratio5.15
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$219.00Price Target Upside9.98% Upside
Rating ConsensusHold
Number of Analyst Covering5
EPS Forecast (FY)13.86
Revenue Forecast (FY)C$2.44B
iA Financial Corporation Inc Business Overview & Revenue Model
Company Description
iA Financial Corporation Inc., provides insurance and wealth management services for individual and group basis in Canada and the United States. It operates through Insurance, Canada; Wealth Management; US Operations; and Investment segments. The ...
How the Company Makes Money
iA Financial Corporation Inc. generates earnings primarily through insurance operations and wealth/asset management-related activities.
1) Insurance revenue and underwriting results
- Premiums and policy charges: The company collects insurance pr...
iA Financial Corporation Inc Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 09, 2026
Earnings Call Sentiment Positive
The call communicates a broadly positive performance: strong earnings, ROE in line with targets, robust capital position, substantial business growth (notably in Wealth Management), and continued shareholder returns. Most negative items are localized (U.S. Dealer Services underperformance, a specific mortality loss at Fidelity Life, Investment segment headwinds, and some mutual fund outflows) and management outlined remedial actions and a path to improvement. Capital constraints driven by reserve accounting are a near-term limitation but solvency remains strong. Overall, the highlights substantially outweigh the lowlights.Positive Updates
Strong Earnings and EPS Growth
Core EPS of $3.68, up 5% year-over-year; reported EPS of $4.28, up 25% year-over-year. Quarterly core earnings were $330 million and net income was $384 million, supported by favorable market-related impacts.
Negative Updates
U.S. Operations Earnings Weakness
U.S. core earnings were $24 million versus $36 million a year ago (approx. -33% year-over-year). Performance was impacted by an $8 million experience loss at Fidelity Life due to a small number of large mortality claims and slower-than-expected earnings improvement at Dealer Services.
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Q2-2026 Updates
Positive
Negative
Strong Earnings and EPS Growth
Core EPS of $3.68, up 5% year-over-year; reported EPS of $4.28, up 25% year-over-year. Quarterly core earnings were $330 million and net income was $384 million, supported by favorable market-related impacts.
Read all positive updates
Company Guidance
The company reiterated 2026 targets and a constructive outlook backed by strong metrics: trailing-12‑month core ROE is 17.5% (quarterly annualized 18.5%), core EPS $3.68 (+5% YoY) and reported EPS $4.28 (+25% YoY), with core earnings of $330M and net income $384M; capital remains robust with a 137% solvency ratio, $1.1B capital available for deployment, $180M (reported $188M corrected to $180M) organic capital generated in Q2 and $335M YTD toward a >$700M 2026 objective (with H2 typically stronger), and $347M returned via buybacks; dividend policy and tax/expense guidance includes a core dividend payout ratio ≈30%, consolidated core effective tax rate 21.2% in Q2 (expected toward the upper end of 21–23% in Q3/Q4), core corporate expenses $74M with core other expenses ~$65M (target range $70M ± $5M) expected to trend to the midpoint; and business growth underpinning guidance: net premiums/premium equivalents/deposits $6.3B (+25% YoY), AUA/AUM growth +37% YoY (Wealth AUM +15% YoY), Wealth gross sales $4.3B and combined net inflows $934M (individual segregated fund gross >$2B, +52%, net sales >$1B; mutual funds gross $644M, +46%, net outflows $73M), U.S. individual sales US$86M (+10%) and Dealer Services US$292M, Insurance Canada individual sales $102M, Dealer Services Canada $218M, iA Auto & Home direct written premium $216M (+5%), and book value per common share $80.55 (+6% YoY).iA Financial Corporation Inc Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
83
Very Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 13.54B | 11.31B | 7.93B | 8.71B | -3.50B | 13.40B |
| Gross Profit | 9.86B | 11.31B | 3.70B | 3.14B | 12.00M | 4.35B |
| EBITDA | 1.94B | 1.75B | 1.61B | 1.35B | 656.00M | 1.60B |
| Net Income | 1.12B | 1.10B | 962.00M | 789.00M | 334.00M | 859.00M |
Balance Sheet | ||||||
| Total Assets | 134.33B | 122.81B | 109.86B | 93.85B | 87.42B | 94.66B |
| Cash, Cash Equivalents and Short-Term Investments | 1.82B | 1.95B | 1.57B | 1.38B | 1.36B | 1.55B |
| Total Debt | 1.99B | 2.77B | 2.09B | 1.87B | 2.07B | 1.65B |
| Total Liabilities | 126.21B | 114.54B | 102.39B | 86.81B | 80.28B | 87.41B |
| Stockholders Equity | 8.12B | 8.27B | 7.47B | 7.04B | 7.14B | 7.25B |
Cash Flow | ||||||
| Free Cash Flow | 2.68B | 3.21B | 763.00M | 1.06B | 326.00M | -63.00M |
| Operating Cash Flow | 2.96B | 3.44B | 1.04B | 1.34B | 613.00M | 185.00M |
| Investing Cash Flow | -2.04B | -2.02B | -491.00M | -307.00M | -287.00M | -294.00M |
| Financing Cash Flow | -774.00M | -712.00M | -397.00M | -1.01B | -525.00M | -294.00M |
iA Financial Corporation Inc Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | C$6.10B | 3.28 | 19.97% | 6.86% | 31.77% | 48.87% | |
79 Outperform | C$17.90B | 17.39 | 13.70% | 2.05% | 13.06% | 8.42% | |
79 Outperform | C$8.74B | 18.47 | 11.45% | 1.12% | 35.39% | 14.86% | |
78 Outperform | C$20.18B | 17.60 | 12.91% | 2.70% | 19.92% | 20.90% | |
74 Outperform | C$62.42B | 18.90 | 13.89% | 3.35% | -0.59% | 5.22% | |
74 Outperform | C$8.69B | 12.29 | 5.25% | 0.35% | 1.85% | -9.67% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
TSE:IAG
iA Financial Corporation Inc
203.86
55.99
37.86%
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TSE:DFY
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iA Financial Corporation Inc Corporate Events
Business Operations and Strategy
iA Financial Group to Redeem 3.072% Subordinated Debentures in September 2026
Neutral
Aug 7, 2026
iA Financial Corporation Inc., which operates as iA Financial Group, is a major Canadian insurance and wealth management provider with a growing North American footprint. The company delivers diversified financial products and services and maintai...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.