Mr. Denis Ricard reports

IA FINANCIAL GROUP REPORTS FOURTH QUARTER RESULTS AND ANNOUNCES A 7% INCREASE IN ITS COMMON DIVIDEND

For the fourth quarter ended Dec. 31, 2023, iA Financial Corp. Inc. recorded core diluted earnings per common share of $2.34, compared with $2.40 in the fourth quarter of 2022. Core return on common shareholders equity for the trailing 12 months was 14.4 per cent, aligned with the company's medium-term target of 15 per cent. On a reported basis, which includes the impact of volatile items (primarily short-term macroeconomic variations and the impact of assumption changes and management actions), the result was higher than core earnings, with quarterly net income attributed to common shareholders of $248-million, earnings per share of $2.46 and return on equity for the trailing 12 months of 11.6 per cent. The solvency ratio of 145 per cent at Dec. 31, 2023, is well above the company's operating target of 120 per cent.

"We concluded 2023 with very good performance in almost all business units, both in sales and earnings. The solid increase in assets under management and administration, as well as in premiums and deposits, testifies to our continued strong business growth, including for individual insurance in Canada and the [United States]," commented Denis Ricard, president and chief executive officer of iA Financial Group. "Looking ahead, our solid capital position supports our growth ambition to create value towards our medium-term core ROE target of 15 per cent, notably through organic investment in our client-centric digital transformation. We look forward to 2024 with confidence, and accordingly, today, we are pleased to announce a 7-per-cent dividend increase for our shareholders."

"In view of our growth-oriented capital deployment strategy, we are particularly proud to have achieved our annual organic capital generation target, reflecting sustained generation throughout the year and demonstrating the value created by our operations," added Eric Jobin, executive vice-president, chief financial officer and chief actuary. "Q4 and 2023 profitability was supported, among other things, by favourable core insurance experience, which was also recognized in the annual assumption review process, resulting in a small global impact that attests to the soundness of our long-term management approach."

Normal course issuer bid

In the fourth quarter of 2023, under the NCIB program, the company redeemed and cancelled 1,987,048 outstanding common shares for a total value of $171-million. As a result, a total of 5,394,180 outstanding common shares were redeemed and cancelled in 2023 for a total value of $461-million. Under the current NCIB regime, the company can redeem up to 5,046,835 common shares, representing approximately 5 per cent of the outstanding common shares, between Nov. 14, 2023, and Nov. 13, 2024.

Dividend

The company paid a quarterly dividend of 76.50 cents to common shareholders in the fourth quarter of 2023. The board of directors approved a quarterly dividend of 82.00 cents per share for the first quarter of 2024, an increase of 7 per cent or 5.50 cents from the previous paid dividend, on the outstanding common shares of iA Financial. This dividend is payable on March 15, 2024, to the shareholders of record at March 1, 2024.

Dividend reinvestment and share purchase plan

Registered shareholders wishing to enroll in iA Financial's dividend reinvestment and share purchase plan so as to be eligible to reinvest the next dividend payable on March 15, 2024, must ensure that the duly completed form is delivered to Computershare no later than 4 p.m. on Feb. 23, 2024. Enrolment information is provided on iA Financial Group's website under the dividends section. Common shares issued under iA Financial's DRIP will be purchased on the secondary market, and no discount will be applicable.

Appointment

On Nov. 9, 2023, iA Financial Group announced the appointment of Martin Gagnon to the boards of directors of iA Financial Corp. Inc. and Industrial Alliance Insurance and Financial Services Inc., effective Jan. 17, 2024. Mr. Gagnon has over 25 years of experience in banking, asset management and brokerage firms.

New greenhouse gas reduction targets

On Dec. 14, 2023, iA Financial Group announced its new greenhouse gas reduction targets, set using 2022 as a baseline. The company presented two new targets which replace the previous target set in 2020: a 60-per-cent reduction in GHG emission intensity from the company's Canadian real estate holdings by 2035 and a 40-per-cent reduction in carbon intensity of the company's public corporate bond portfolio by 2035.

Outlook

Medium-term guidance for iA Financial:

• Core earnings per common share: target of 10-per-cent annual average growth;
• Core return on common shareholders equity: target of 15 per cent;
• Solvency ratio operating target: target of 120 per cent;
• Organic capital generation: target of $600-million in 2024;
• Dividend payout ratio based on core earnings: target range of 25 per cent to 35 per cent.

Documents related to the financial results

For a detailed discussion of iA Financial's and iA Insurance's fourth quarter results, investors are invited to consult management's discussion and analysis for the quarter ended Dec. 31, 2023, the related financial statements and accompanying notes, and the financial information package for each company, all of which are available on the iA Financial Group website under about iA, in the investor relations/financial reports section and on SEDAR+.

Conference call

Management will hold a conference call to present iA Financial Group's fourth quarter results on Wednesday, Feb. 21, 2024, at 11 a.m. ET. To listen to the conference call, choose one of the options below.

Live webcast: Go to the iA Financial Group website in the investor relations section under the events and presentations tab.

By phone: Enter your phone number to receive a phone call that will instantly connect you to the conference call. You can also dial 416-764-8651 or 1-888-390-0620 (toll-free in North America) 15 minutes before the conference call is scheduled to take place, and an operator will connect you.

About iA Financial Corp. Inc.

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 symbols IAG (common shares) and IAF (preferred shares).

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