November 8, 2018 11:30
Denis Ricard | Photo : Denis Méthot
iA financial Group reported net income attributed to common shareholders 164,9 million dollars ($M) in the third quarter of 2018, an increase of 14% compared to 144,9 M$ in 2017. Since 1 September last, the new CEO of iA, Denis Ricard, had stated in the Journal of insurance want to maintain an annual growth in net earnings per share (EPS) of at least 10 %. However, growth has been 11% for the third quarter of 2018.
“The experience on the side of policyholders has continued to enjoy a favourable trend during the third quarter, all business sectors or business units, including iA Auto and home, having achieved results in line or above expectations,” commented James Potvin, executive vice president, chief financial officer and chief actuary. The generation of organic capital also continues to move forward in a manner consistent with the projections and the solvency ratio remains above the target range. “
Increase of 6 % in individual insurance
The individual insurance line of business has generated total sales to$ 49.4 Million in Canada, a result higher of 6 % compared to the third quarter last year. Individual insurance, however, is the only sector that has not experienced an increase in net earnings. The latter has generated$ 80.6 Million in the third quarter of 2018, compared to$ 82.1 Million in the third quarter of 2017. This figure represents a decrease of almost 2 %.
In the area of individual wealth Management gross sales of segregated funds have reached 464,4 M$ in the third quarter, which represents an increase of 10 % compared to the same quarter last year. The net sales increased from$ 113.3 Million in the third quarter of 2017 at 63.1 M$ in the third quarter of 2018. These results attest to the general conditions of markets and the present preference of the consumers for guaranteed products, according to the insurer.
The american cases also on the rise
In the sector of american business, the sales in individual insurance have reached 21 million us dollars (M US$), which represents an increase of 19 %. The side activities that are related to auto dealers, the acquisition of DAC in January has added to the segment 104,8 M US$.
In iA Auto and home premiums written during the third quarter increased 6 %, to reach$87.3 Million.