iA Financial Group Reports First Quarter Results

FIRST QUARTER HIGHLIGHTS

• Core EPS^†† of $2.91 (+19% YoY), trailing-12-month core ROE^†† of 16.1% and annualized core ROE^†† of 15.8%
• EPS of $1.98, trailing-12-month ROE¹ of 13.0% and annualized ROE of 10.8%
• Strong sales² momentum in Canada and the U.S., leading to $5.8 billion in premiums and deposits^2,3 (+19% YoY)
• Assets of more than $264 billion at March 31, 2025, for a solid 15% increase over the last 12 months (total AUM² and AUA²)
• Robust solvency ratio⁴ of 132% at March 31, 2025 supported by ongoing organic capital generation²
• Flexible balance sheet and capital available for deployment² of $1.4 billion at March 31, 2025
• Book value per common share⁵ reaching $74.62 at March 31, 2025, up 2% over 3 months and up 8% over 12 months

For the first quarter ended March 31, 2025, iA Financial Group (TSX: IAG) recorded core diluted earnings per common share (EPS)^†† of $2.91, which is 19% higher than the same period in 2024. Core return on common shareholders' equity (ROE)^†† for the trailing 12 months was 16.1%. First quarter net income attributed to common shareholders was $186 million, diluted EPS was $1.98 and ROE for the trailing 12 months was 13.0%. The solvency ratio was 132% at March 31, 2025, reflecting a strong capital position.

"After a solid performance in 2024, we continued to show strong momentum entering 2025 across all business units. The sales and earnings growth seen in both Canada and the U.S. in the first quarter underscores the strength of our distribution network and diversified business model, positioning us strongly to achieve our new financial targets introduced at our Investor Event in February,"⁶ commented Denis Ricard, President and CEO of iA Financial Group. "In Canada, we maintained our strong sales position in our foundation businesses, comprising individual insurance, dealer services and segregated funds. In the U.S, Individual Insurance reported solid results, fueled by organic growth and acquisitions, and Dealer Services delivered the gradual improvement in earnings we had anticipated, reflecting our disciplined focus on execution."

"Profitability was very good in the first quarter, with a 19% increase in core EPS^†† year over year driven by good earnings growth in all three operating segments and ROE for the last 12 months in excess of 16%, progressing steadily toward our new target of 17%+ set for 2027,⁶" added Éric Jobin, Executive Vice-President, CFO, and Chief Actuary. "In the context of an evolving economic environment, our strong capital position, flexible balance sheet, resilient business model and disciplined, long-term approach collectively serve as a firm base to pursue our sustainable growth strategy."

Unless otherwise indicated, the results presented in this document are in Canadian dollars and are compared with those from the corresponding period last year.

ANALYSIS OF EARNINGS BY BUSINESS SEGMENT

The following table sets out the core earnings^† and net income attributed to common shareholders by business segment. An analysis of the performance by business segment and a reconciliation between the net income attributed to common shareholders and core earnings^† is provided in the following pages.

Insurance, Canada

• Net income attributed to common shareholders for the Insurance, Canada segment was $87 million, which is higher than $83 million for the same period in 2024. Net income attributed to common shareholders is composed of core earnings^† as well as core earnings adjustments.
• Core earnings adjustments to net income totalled $13 million. These include acquisition-related items ($5 million), impact of non-core pension expenses ($3 million) and other adjustments consisting primarily of tax-related items and reallocations for reporting consistency, which mostly sum to zero on a consolidated basis ($5 million).
• Core earnings^† for this business segment were $100 million, higher than $92 million for the same period in 2024. This 9% increase in core earnings^† over the same period in 2024 is the net result of several favourable items. Expected insurance earnings⁷ were 9% higher, reflecting an increase in the combined risk adjustment (RA) release⁷ and CSM recognized for services provided⁷ and an increase in expected earnings on Premium Allocation Approach (PAA)⁷ business from iA Auto and Home. Additionally, the impact of new insurance business⁷ from Employee Plans was lower compared to a year ago. The increase in core non-insurance activities⁷ was driven by good performances from Dealer Services and distribution activities. Lastly, core insurance experience⁷ gains of $4 million were recorded during the quarter, reflecting lower claims at iA Auto and Home and favourable morbidity experience in Employee Plans, which were partially offset by unfavourable mortality experience.

Wealth Management

• Net income attributed to common shareholders for the Wealth Management segment was $95 million, which is higher than $88 million for the same period in 2024. Net income attributed to common shareholders is composed of core earnings^† as well as core earnings adjustments.
• Core earnings adjustments to net income totalled $11 million, mostly from acquisition-related items ($7 million) and a non-recurring specified item ($3 million).
• Core earnings^† for this business segment were $106 million for the first quarter compared with $95 million a year ago. The 12% increase in core earnings^† over the same period in 2024 is mainly the result of an increase in the combined RA release and CSM recognized for service provided due to strong net segregated fund sales and the impact of favourable financial market performance over the last 12 months. Also, core non-insurance activities⁸ were higher, reflecting a good performance from Group Savings and Retirement, arising mainly from higher net revenue on assets.

US Operations

• Net income attributed to common shareholders for the US Operations segment was $19 million, which is higher than $12 million for the same period in 2024. Net income attributed to common shareholders is composed of core earnings^† as well as core earnings adjustments.
• Core earnings adjustments to net income totalled $11 million from acquisition-related items ($9 million) and an adjustment consisting of a reallocation for reporting consistency, which sum to zero on a consolidated basis ($2 million).
• Core earnings^† for this business segment were $30 million, compared to $19 million for the same period in 2024. The 58% increase in core earnings^† over the same period in 2024 is driven by the following:
  • A strong $19 million⁹ increase in the core insurance service result, which includes the contributions of the Prosperity blocks of business and $8 million⁹ from the Vericity acquisition;
  • A $1 million⁹ increase in core non-insurance activities, which includes a significant year-over-year increase of $5 million⁹ from Dealer Services and a $4 million⁹ loss from the distribution activities of Vericity; and
  • An increase in core other expenses⁸ as expected following the addition of Vericity expenses.

The impact of the Vericity and Prosperity acquisitions is neutral on core earnings and in line with expectations at the time of their acquisition.

Investment

• Net income attributed to common shareholders for the Investment segment was $35 million compared to $100 million for the same period in 2024. Net income attributed to common shareholders is composed of core earnings^† as well as core earnings adjustments.
• Core earnings adjustments to net income of $50 million for this business segment include the following three items:
  • the market-related impacts that differ from management's expectations, resulting in a net loss of $63 million. This adjustment is explained by the unfavourable impacts of: 1) equity variations, reflecting losses of $42 million from public equity and $17 million from private equity; 2) investment property value adjustments totalling $16 million; and 3) CIF adjustments of $4 million. These were partly offset by the favourable impact of interest rate and credit spread variations of $16 million;
  • the favourable impact of assumption changes of $5 million resulting from the update of credit assumptions used to develop the interest rate scale (recurring update specific to the Investment segment and expected to be carried out in the first quarter of each year under IFRS 17); and
  • other favourable adjustments consisting of tax-related items and reallocations for reporting consistency, which mostly sum to zero on a consolidated basis.
• Core earnings^† for this business segment were $85 million compared to $86 million a year ago. Prior to taxes, financing charges and expenses, core earnings^† were driven by a core net investment result⁸ of $124 million. This result compares favourably with $109 million recorded a year ago and $120 million the previous quarter. This strong outcome was bolstered by, among other factors, the favourable impact of interest rate variations in recent quarters. In addition, credit experience⁸ was favourable due to higher impacts from upgrades than downgrades in the fixed income portfolio ($1 million) and credit experience that was in line with expectations in the car loans portfolio of iA Auto Finance.

Corporate

• The net loss attributed to common shareholders for the Corporate segment was $50 million, which is similar to the result for the same period in 2024. The net loss attributed to common shareholders comprises core losses^† as well as core loss adjustments;
• Core loss adjustments to net loss for this business segment totalled $2 million and are related to the acquisition and integration of Vericity; and
• This segment recorded core losses^† from after-tax expenses of $48 million, which compares with $49 million in the first quarter of 2024. This quarter's result is derived from Corporate core other expenses of $65 million before taxes, which is in line with the 2025 quarterly expectation of $68 million plus or minus $5 million. This result reflects, among other things, ongoing strong emphasis on operational efficiency leading to positive operating leverage¹⁰ and temporary savings that may reverse in future quarters.

RECONCILIATION OF NET INCOME ATTRIBUTED TO COMMON SHAREHOLDERS AND CORE EARNINGS^†

The following table presents net income attributed to common shareholders and the adjustments that account for the difference between net income attributed to common shareholders and core earnings.^†

Core earnings^† of $273 million in the first quarter are derived from net income attributed to common shareholders of $186 million and a total adjustment of $87 million (post tax) from:

• the unfavourable market-related impacts that differ from management's expectations, totalling $63 million. This adjustment is explained by the unfavourable impacts of: 1) equity variations, reflecting losses of $42 million from public equity and $17 million from private equity; 2) investment property value adjustments totalling $16 million; and 3) CIF adjustments of $4 million. These were partly offset by the favourable impact of interest rate and credit spread variations of $16 million;
• the favourable impact of assumption changes of $5 million resulting from the update of credit assumptions used to develop the interest rate scale (recurring update related to our Investment segment and expected to be carried out in the first quarter of each year under IFRS 17);
• a total of $2 million mainly related to the acquisition and integration of Vericity;
• the expenses associated with acquisition-related intangible assets of $21 million;
• the impact of non-core pension expenses of $4 million; and
• specified items totalling $2 million consisting mostly of tax-related items.

Contractual Service Margin (CSM)¹² – During the first quarter, the CSM increased organically by $132 million. This increase is due to the positive impact of new insurance business of $191 million, organic financial growth of $92 million and a net insurance experience gain of $44 million, which were moderated by the CSM recognized for service provided in earnings of $195 million, up 19% from a year earlier. Non-organic items led to a decrease of $99 million the first quarter, mostly due to the unfavourable impact of market performance. As a result, the total CSM increased by $33 million during the quarter to stand at $6,932 million at March 31, 2025, an increase of 13% over the last 12 months.

Business growth – The strong sales¹³ momentum of 2024 continued into the first quarter despite uncertainties related to tariffs.  Almost every business unit recorded good sales growth compared to the same period last year. In Insurance, Canada, all business units posted good sales growth, particularly Group Insurance with sales of $178 million. Within this segment, Individual Insurance recorded strong sales of $99 million, and the Company maintained a leading position for the number of policies sold.¹⁴ In the Wealth Management segment, the Company had record quarterly sales and continued to rank first for both gross and net segregated fund¹⁵ sales, with net inflows totalling nearly $1.2 billion. Gross sales of mutual funds posted solid year-over-year growth. Business growth in the US Operations segment was also strong, with solid year-over-year sales growth for both Individual Insurance and Dealer Services. Good sales contributed to the growth in net premiums, premium equivalents and deposits, totalling nearly $5.8 billion, a 19% increase compared to the same period last year. Also, total assets under management¹⁶ and assets under administration¹⁶ exceeded $264 billion, an increase of 15% over the last 12 months.

INSURANCE, CANADA

• In Individual Insurance, first quarter sales totalled $99 million, 11% higher than the same period last year. This very good result reflects the strength of all our distribution networks, the excellent performance of our digital tools, as well as our comprehensive and distinctive range of products. Sales were notably strong for participating insurance and term life insurance. The Company maintained the leading position in the Canadian market for the number of policies issued.¹⁶
• In Group Insurance, first quarter sales of $70 million in Employee Plans were significantly higher than the $30 million recorded during the same quarter last year. This result is largely attributed to the addition of products and participants to existing policies. Net premiums, premium equivalents and deposits increased by 6% year over year, benefiting from good sales and premium increases on renewals. Special Markets sales were 2% higher than a year earlier, reaching $108 million, supported by good sales in travel medical insurance products.
• For Dealer Services, total sales ended the first quarter at $163 million, 10% higher than the same period last year. This growth was supported by sales of Guaranteed Asset Protection (GAP) and ancillary products.
• At iA Auto and Home, direct written premiums reached $129 million in the first quarter, a strong increase of 13% compared to the same period last year. This good business growth is the result of an increased number of policies and disciplined and agile price adjustments.

WEALTH MANAGEMENT

• In Individual Wealth Management, sales of segregated funds were strong during the first quarter, with gross sales amounting to more than $1.9 billion, a significant increase of 52% year over year, and strong net sales of nearly $1.2 billion. The Company continued to rank first in Canada in gross and net segregated fund sales, as per the most recent industry data. This robust performance was notably driven by the strength of our distribution networks and our competitive and comprehensive product lineup. Additionally, clients continued to favour asset classes with higher return potential over guaranteed investments. Sales of other savings products reached $467 million in the first quarter, compared to a strong quarter of $581 million a year earlier. Gross sales of mutual funds totalled $647 million for the quarter, a 33% increase over the same period in 2024. Net outflows of $62 million were recorded, an improvement compared to outflows of $143 million in the first quarter of 2024.
• Group Savings and Retirement sales for the first quarter totalled $841 million and were 8% lower than a year earlier as accumulation product sales were at the same level as in 2024 and insured annuities sales were lower than last year. Total assets under management at the end of the quarter were 17% higher than they were a year earlier.

US OPERATIONS

• In Individual Insurance, sales of US$68 million in the first quarter, which were 62% higher than a year earlier, reflect our potential for strong growth in the U.S. life insurance market, both organically and through acquisitions. This solid result is driven by good growth in the final expense, middle/family and government/worksite markets and the addition of sales from the Vericity acquisition.
• In Dealer Services, first quarter sales were up 23% over the same period last year, reaching US$306 million. This good result reflects the quality of our products and services as well as the effectiveness and diversity of our distribution channels. Also, sales of supplementary (F&I) products sold alongside vehicles have improved during the quarter due to increased consumer affordability resulting from lower interest rates, cash incentives from manufacturers, and greater vehicle inventory.

ASSETS UNDER MANAGEMENT AND ASSETS UNDER ADMINISTRATION

Assets under management and administration totalled more than $264 billion at the end of the first quarter, up 15% over the last 12 months and up 2% during the quarter. This growth was mainly driven by high net fund inflows, particularly from segregated funds.

NET PREMIUMS, PREMIUM EQUIVALENTS AND DEPOSITS

Net premiums, premium equivalents and deposits amounted to nearly $5.8 billion in the first quarter, a solid increase of 19% over the same period last year. Almost all business units contributed to this strong performance, particularly Individual Wealth Management and both business units in our U.S. Operations segment.

FINANCIAL POSITION

The Company's solvency ratio¹⁷ was 132% at March 31, 2025, compared with 139% at the end of the previous quarter and 142% a year earlier. This result is well above the regulatory minimum ratio of 90%. The seven-percentage-point decrease during the first quarter is the result of specific items. These include capital management and deployment activities through the Global Warranty acquisition, share buybacks (NCIB), IT investments and the redemption of subordinated debentures outlined below in this section. Also, macroeconomic variations and other non-organic items had an unfavourable impact on the ratio during the quarter. These items were partly offset by the favourable impact of organic capital generation.¹⁸ The Company's financial leverage ratio^†† of 14.8% at March 31, 2025 compares to 17.3% at the end of the previous quarter.

Organic capital generation and capital available for deployment – The Company organically generated $125 million in additional capital during the first quarter. This result is in line with projections to exceed the annual target threshold of $650 million in 2025,¹⁹ with organic generation typically strengthening from the second quarter onwards due to seasonality. At March 31, 2025, the capital available for deployment was assessed at $1.4 billion. As detailed below in this section, the AMF's revised Capital Adequacy Requirements Guideline – Life and Health Insurance (CARLI) positively impacted the Company's capital available for deployment.

Book value – The book value per common share²⁰ was $74.62 at March 31, 2025, up 2% during the quarter and 8% during the last 12 months.

Normal Course Issuer Bid (NCIB) – During the first quarter of 2025, the Company repurchased and cancelled 218,200 outstanding common shares for a total value of $29 million under the NCIB program and cancelled 52,700 additional shares that had been repurchased but not cancelled as of December 31, 2024. Under the program in force from November 14, 2024 to November 13, 2025, the Company can repurchase up to 4,694,894 common shares, representing approximately 5% of the issued and outstanding common shares as at October 31, 2024. Since November 14, 2024, 822,600 shares, or 0.9% of the outstanding shares, have been repurchased and cancelled. Therefore, the Company may repurchase up to 3,872,294 outstanding common shares between March 31, 2025 and November 13, 2025.

Dividend – The Company paid a quarterly dividend of $0.9000 per share to common shareholders in the first quarter of 2025. The Board of Directors approved a quarterly dividend of $0.9000 per share payable during the second quarter of 2025. This dividend is payable on June 16, 2025 to the shareholders of record at May 23, 2025.

Dividend Reinvestment and Share Purchase Plan – Registered shareholders wishing to enrol in iA Financial Group's Dividend Reinvestment and Share Purchase Plan (DRIP) so as to be eligible to reinvest the next dividend payable on June 16, 2025 must ensure that the duly completed form is delivered to Computershare no later than 4:00 p.m. on May 15, 2025. Enrolment information is provided on iA Financial Group's website at ia.ca, under About iA, in the Investor Relations/Dividends section. Common shares issued under iA Financial Group's DRIP will be purchased on the secondary market and no discount will be applicable.

AMF Capital Adequacy Requirements Guideline – As disclosed in the financial documents for the third and fourth quarters of 2024, a revised Capital Adequacy Requirements for Life and Health Insurance (CARLI) Guideline became effective on January 1, 2025. As anticipated, this revision mainly impacted iA Financial Group by increasing the Company's capital available for deployment, through exempting iA Financial Group from intervention target ratios at the holding company level, while still requiring adherence to minimum ratios. The new CARLI guideline also includes revisions related to the regulatory capital requirements for segregated fund guarantees. As allowed by the AMF for insurers, the Company will continue to apply the previous version of the guideline during the first half of 2025.

External auditor appointment – On January 28, 2025, iA Financial Group announced that the Board of Directors, following the recommendation of its Audit Committee, has proposed the appointment of Ernst & Young LLP ("EY") as the Company's external auditor for the 2026 financial year. The decision followed a comprehensive external auditor tender process and is part of the Company's commitment to upholding robust governance practices. Deloitte LLP will continue as external auditor for the 2025 financial year, subject to shareholder approval at the Company's annual meeting of common shareholders to be held on May 8, 2025. For additional information, please refer to the press release, which can be found on our website at ia.ca. 

Acquisition of Global Warranty – On February 4, 2025, iA Financial Group acquired Global Warranty, a group of companies that are leading independent warranty providers and administrators in the used vehicle market in Canada. Global Warranty does business with a network of over 1,500 automotive dealerships and more than 400 authorized repair centres across the country. The acquisition will increase the Company's dealer services presence in the used vehicle warranty market, and is expected to be slightly accretive from the first year, on both a core and reported basis. For additional information, please refer to the press release, which can be found on our website at ia.ca.

Anniversary on TSX – On February 3, 2025, iA Financial Group celebrated its 25th anniversary of being listed on the Toronto Stock Exchange. Mr. Denis Ricard and Mr. Jacques Martin marked the occasion by opening the markets at the Toronto Stock Exchange, joined by board members and members of iA's senior leadership teams. The event was broadcast live by the TSX.

Investor Event – iA Financial Group hosted an Investor Event on February 24, 2025. The event, titled "Ready for more, the iA way" provided an update on the Company's growth strategy, with a particular focus on U.S. business operations and key objectives for Canadian units. New financial targets were also shared during the event. Materials from the event, including video webcasts, can be accessed on the Company's website at ia.ca, under About Us/Investor Relations/Events and Presentations/2025 Investor Event.

Subordinated debentures redemption – On February 21, 2025, iA Financial Group completed the redemption of its $400 million principal amount of 2.400% subordinated debentures due February 21, 2030.

2024 annual documents publication – On March 28, 2025, iA Financial Group released its Annual Report, Proxy Circular, Annual Information Form and Sustainability Report. The documents are available on our website at ia.ca.

Appointment – On January 8, 2025, iA Financial Group announced the appointment of John Laudenslager as President of iA American Warranty Group. For additional information, please refer to the press release, which can be found on our website at ia.ca.

Credit ratings – During the first quarter of 2025, the S&P Global and DBRS Morningstar agencies confirmed with a stable outlook all ratings of iA Financial Group and its related entities, including Industrial Alliance Insurance and Financial Services Inc.

Philanthropy – On March 8, 2025, iA Financial Group recognized the efforts of four inspiring women at the Company and their collaboration with YWCAs in Quebec City, Toronto, and Vancouver, donating a total of $600,000 to four important YWCA programs that provide support, a safe environment and opportunities for women, girls and gender diverse individuals in need to reach their full potential.

Subsequent to the first quarter:

• Annual Meetings – The Annual Shareholder Meeting of iA Financial Corporation Inc. and the Annual Meeting of the Sole Common Shareholder and of the Participating Policyholders of Industrial Alliance Insurance and Financial Services Inc. will be held in hybrid format on Thursday, May 8, 2025.

FINANCIAL TARGETS

The Company introduced its financial targets at its 2025 Investor Event on February 24. The table below presents the progress towards achieving these annual and mid-term targets.

NON-IFRS AND ADDITIONAL FINANCIAL MEASURES

iA Financial Corporation reports its financial results and statements in accordance with IFRS® Accounting Standards. The Company also publishes certain financial measures or ratios that are not presented in accordance with IFRS. The Company uses non-IFRS and other financial measures when evaluating its results and measuring its performance. The Company believes that such measures provide additional information to better understand its financial results and assess its growth and earnings potential, and that they facilitate comparison of the quarterly and full year results of the Company's ongoing operations. Since such non-IFRS and other financial measures do not have standardized definitions and meaning, they may differ from similar measures used by other institutions and should not be viewed as an alternative to measures of financial performance, financial position or cash flow determined in accordance with IFRS. The Company strongly encourages investors to review its financial statements and other publicly filed reports in their entirety and not to rely on any single financial measure.

Non-IFRS financial measures include core earnings (losses).

Non-IFRS ratios include core earnings per common share (core EPS); core return on common shareholders' equity (core ROE); core effective tax rate; core dividend payout ratio; and financial leverage ratio.

Supplementary financial measures include return on common shareholders' equity (ROE); components of the CSM movement analysis (organic CSM movement, impact of new insurance business, organic financial growth, insurance experience gains (losses), impact of changes in assumptions and management actions, impact of markets, currency impact); components of the drivers of earnings (in respect of both net income attributed to common shareholders and core earnings); assets under management; assets under administration; capital available for deployment; dividend payout ratio; total payout ratio (trailing 12 months); organic capital generation; sales; net premiums; and premium equivalents and deposits.

For relevant information about non-IFRS measures, see the "Non-IFRS and Additional Financial Measures" section in the Management's Discussion and Analysis (MD&A) for the period ending March 31, 2025, which is hereby incorporated by reference and is available for review on SEDAR+ at sedarplus.ca or on iA Financial Group's website at ia.ca.

A reconciliation of net income attributed to common shareholders to core earnings by business segment is included below. See "Reconciliation of Net Income Attributed to Common Shareholders and Core Earnings" above for the reconciliation on a consolidated basis.

Reconciliation of Select Non-IFRS Financial Measures

Forward-Looking Statements

This document may contain statements that are predictive or otherwise forward-looking in nature, that depend upon or refer to future events or conditions, or that include words such as "may", "will", "could", "should", "would", "suspect", "expect", "anticipate", "intend", "plan", "believe", "estimate", and "continue" (or the negative thereof), as well as words such as "financial targets", "objective", "goal", "guidance", "outlook" and "forecast", or other similar words or expressions. Such statements constitute forward-looking statements within the meaning of securities laws. In this document, forward-looking statements include, but are not limited to, information concerning possible or future operating results, strategies, and financial and operational outlook. These statements are not historical facts; they represent only expectations, estimates and projections regarding future events and are subject to change.

Although iA Financial Group believes that the expectations reflected in such forward-looking statements are reasonable, such statements involve risks and uncertainties, and undue reliance should not be placed on such statements. In addition, certain material factors or assumptions are applied in making forward-looking statements, and actual results may differ materially from those expressed or implied in such statements.

Material factors and risks that could cause actual results to differ materially from expectations include, but are not limited to: general business and economic conditions; level of competition and consolidation and ability to adapt products and services to market or customer changes; information technology, data protection, governance and management, including privacy breach, and information security risks, including cyber risks; level of inflation; performance and volatility of equity markets; interest rate fluctuations; hedging strategy risks; accuracy of information received from counterparties and the ability of counterparties to meet their obligations; unexpected changes in pricing or reserving assumptions; iA Financial Group liquidity risk, including the availability of funding to meet financial liabilities at expected maturity dates; mismanagement or dependence on third-party relationships in a supply chain context; ability to attract, develop and retain key employees; risk of inappropriate design, implementation or use of complex models; fraud risk; changes in laws and regulations, including tax laws; contractual and legal disputes; actions by regulatory authorities that may affect the business or operations of iA Financial Group or its business partners; changes made to capital and liquidity guidelines; risks associated with the regional or global political and social environment; geopolitical and trade uncertainty; climate-related risks including extreme weather events or longer-term climate changes and the transition to a low-carbon economy; iA Financial Group's ability to meet stakeholder expectations on environmental, social and governance matters; the occurrence of natural or man-made disasters, international conflicts, pandemic diseases (such as the COVID-19 pandemic) and acts of terrorism; and downgrades in the financial strength or credit ratings of iA Financial Group or its subsidiaries.

Material factors and assumptions used in the preparation of financial outlooks include, but are not limited to: accuracy of estimates, assumptions and judgments under applicable accounting policies, and no material change in accounting standards and policies applicable to the Company; no material variation in interest rates; no significant changes to the Company's effective tax rate; no material changes in the level of the Company's regulatory capital requirements; availability of options for deployment of excess capital; credit experience, mortality, morbidity, longevity and policyholder behaviour being in line with actuarial experience studies; investment returns being in line with the Company's expectations and consistent with historical trends; different business growth rates per business unit; no unexpected changes in the economic, competitive, insurance, legal or regulatory environment or actions by regulatory authorities that could have a material impact on the business or operations of iA Financial Group or its business partners; no unexpected change in the number of shares outstanding; and the non‑materialization of risks or other factors mentioned or discussed elsewhere in this document or found in the "Risk Management" section of the Company's Management's Discussion and Analysis for 2024 that could influence the Company's performance or results.

Escalating U.S.-Canada trade tensions, including tariffs on automobiles and auto parts, along with U.S.-China trade frictions and retaliatory tariffs, have intensified global trade instability. Global equity markets have experienced volatility due to uncertainty around tariffs, shifting interest rate expectations, and softer-than-expected economic data. In addition, trade barriers, such as potential and actual tariffs by the U.S., may shift global growth and trade patterns and have a ripple effect on supply chains, potentially further disrupting markets. These factors could lead to reduced consumer and investor confidence, increased financial volatility, and constrained growth opportunities.

Additional information about the material factors that could cause actual results to differ materially from expectations and about material factors or assumptions applied in making forward-looking statements may be found in the "Risk Management" section of the Management's Discussion and Analysis for 2024, the "Management of Financial Risks Associated with Financial Instruments and Insurance Contracts" note to the audited consolidated financial statements for the year ended December 31, 2024 and elsewhere in iA Financial Group's filings with the Canadian Securities Administrators, which are available for review at sedarplus.ca.

The forward-looking statements and outlooks in this document reflect iA Financial Group's expectations as of the date of this document. iA Financial Group does not undertake to update or release any revisions to these forward‑looking statements to reflect events or circumstances after the date of this document or to reflect the occurrence of unanticipated events, except as required by law. Forward-looking statements are presented in this document for the purpose of assisting investors and others in understanding certain key elements of the Company's expected financial results, as well as the Company's objectives, strategic priorities and business outlook, and in obtaining a better understanding of the Company's anticipated operating environment. Readers are cautioned that such information may not be appropriate for other purposes.

GENERAL INFORMATION

Documents Related to the Financial Results

For a detailed discussion of iA Financial Group's first quarter results, investors are invited to consult the Management's Discussion and Analysis for the quarter ended March 31, 2025, the related financial statements and accompanying notes and the Financial Information Package, all of which are available on the iA Financial Group website at ia.ca under About iA, in the Investor Relations/Financial Reports section and on SEDAR+ at sedarplus.ca.

CONFERENCE CALL

Management will hold a conference call to present iA Financial Group's first quarter results on Thursday, May 8, 2025 at 12:00 p.m. (ET). To listen to the conference call, choose one of the options below:

• Live Webcast: Click here (https://www.gowebcasting.com/14011) or visit the iA Financial Group website at ia.ca and go to About iA/Investor Relations/Events and Presentations.

• By phone: Click here (https://dpregister.com/sreg/10198663/fee2aa0514) to register and receive a dial-in number to connect instantly to the conference call. You can also dial 1-844-763-8274 (toll-free in North America) or 1-647-484-8814 (International) fifteen minutes before the conference call is scheduled to take place and an operator will connect you.

The conference call will be recorded and the replay will be available on the iA Financial Group website at ia.ca, under About iA/Investor Relations/Financial Reports.

ANNUAL MEETING

iA Financial Corporation is holding its Annual Meeting in hybrid format at 2:00 p.m. (ET) on Thursday, May 8, 2025, in person and at the following web address: https://www.icastpro.ca/fia250508. A webcast of the meeting as well as a copy of management's presentation will be available on the Company's website at ia.ca under About iA, in the Investor Relations/Events and Presentations section.

ABOUT iA FINANCIAL GROUP

iA Financial Group is one of the largest insurance and wealth management groups in Canada, with operations in the United States. Founded in 1892, it is an important Canadian public company and is listed on the Toronto Stock Exchange under the ticker symbol IAG (common shares).

ia.ca

iA Financial Group is a business name and trademark of iA Financial Corporation Inc.

SOURCE iA Financial Group