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iA financial Group is faring better than its competitors

by

Frédérique De Simone

2 August 2019 11:30

Photo : Freepik

In contrast to Great-West Lifeco and Sun Life Financial, iA financial group has recorded an increase in net profits in the second quarter of 2019. Indeed, its net profit is of 181,2 million dollars (M$), or$ 22.1 Million more, compared to the result for the second quarter of 2018, where he was 159,1 M$. The increase is mainly explained by the increase in net premiums and investment products.

“Our sustainable growth strategy to bear fruit, as evidenced by our excellent second quarter results,” said Denis Ricard, chairman and chief executive officer of iA Group financial. “

“Earnings for the quarter is higher than the indication given to the markets due to several favourable elements. In addition, the investment strategies put in place to manage the macroeconomic risks have contributed to our strong capital position, while mitigating the impact of low interest rates “, adds in his turn, Jacques Potvin, executive vice president, chief financial officer and chief actuary.

The solvency ratio has increased from a few points between the first and the second quarter of 2019. It was 125% at June 30, compared to 123 % at the end of the previous quarter and 122 % a year earlier. The solvency ratio is well above the minimum ratio required by the regulatory authorities and higher than the target range of ai Insurance, which is 110 % to 116 %.

Individual life insurance

The individual insurance has generated total sales of$ 48 Million in Canada. They are slightly higher than the total of 47.4 Million$ recorded in the same period in 2018. As to the number of policies issued during the second quarter, they are higher by 3% in 2019 than they were in 2018, reflecting the increasing activity in distribution networks.

For the individual wealth management sales of guaranteed products amounted to $ 97,9 Million during the second quarter, a level similar to that of the same period in 2018. The gross sales of segregated funds have reached 544,8 Million, while net sales amounted to$ 106.2 Million, compared with 63.4$ M a year earlier.

Group insurance

The employee plan totaled$ 4.1 Million in the second quarter of 2019, compared to$ 56.4 Million recorded in the second quarter of 2018. To know that the sales of this division vary from one quarter to another, depending on the importance of the mandates obtained.

Car dealerships, and insurance

For the services to automobile dealers, sales were $ 270,1 M$. They are 74,3 M$ for the insurance, property and casualty, 91.3 M$ for the credit insurance and 104.5 M$ for programming of car loans non-preferential.

iA Auto and home, were registered in the second quarter, increases of 7 percent of their written premiums compared to the same quarter of 2018. the total for the second quarter of 2019 is $ 112,4 M$.

American business

Sales of individual life insurance were$ 24.7 MILLION US, which represents an increase of 15 %. On the side of the activities relating to automobile dealers, sales were $ 114,4 MILLION US$, an increase of 11 % compared to the corresponding quarter of 2018.

“We are pleased with the growth of the business, said Mr Ricard, notably in the United States. The momentum continues for our two american divisions and reinforces our desire to grow in this market. We also continue to experience good results in terms of segregated fund sales in Canada, where we remain the first in the industry in terms of net sales. “

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