Profits increased once again for Quebec City–based iA Financial Corporation in the third quarter.
The firm reported net income attributed to common shareholders of $217.5 million in Q3, up from $188.2 million in Q2 and $183.7 million a year ago. Diluted earnings per common share (EPS) reached $2.03 — marking the first time iA’s EPS has crossed the $2 threshold.
Most of iA’s business units saw “significant” top-line growth during the quarter, the firm said in a release.
iA’s individual insurance business recorded an experience gain of $12.8 million. Markets had a positive impact on universal life policies and assets that back insurance reserves, although mortality was “unfavourable,” resulting in a $0.02 hit to EPS.
Individual wealth management had an gain of $3.5 million. Guaranteed product sales were $208.2 million, up 29% from a year ago, and segregated fund sales totalled $724.9 million, up 26% from a year ago.
Gross mutual fund sales hit $544.7 million, up 17% from a year ago. Net sales of mutual funds were positive for the second consecutive quarter, with net inflows reaching $47.6 million.
iA reported assets under management and administration of $185.8 billion in Q3, up from $181 billion at the end of Q2, but down from $187.1 billion a year ago.
The firm reported a solvency ratio of 125% — “well above” its target range of 110–116%.
“Amid the ongoing pandemic, we’re continuing to pursue long-term growth while protecting our substantial financial strength,” Denis Ricard, president and CEO of iA Financial Group, said in a statement.