iA Financial Q2 results deliver record organic capital

iA Financial Corporation Inc. (TSX: IAG) reported record-breaking Q2 2025 results, highlighted by $200 million in organic capital generation, contributing to a year-to-date total of $325 million. This performance aligns with projections to surpass the 2025 target of $650 million. Key financial highlights include:

  • Core Diluted EPS: $3.49, up 27% from Q2 2024, exceeding the medium-term target of over 10% annual growth.
  • Net Income: $321 million for common shareholders, a 52.8% increase from $214 million in Q2 2024.
  • Core ROE: 17.0% for the trailing 12 months, meeting the 2027 target.
  • Solvency Ratio: 138%, well above the regulatory minimum of 90%, bolstered by a $400 million preferred share issuance in June 2025.
  • Assets Under Management/Administration: $274 billion, up 16% year-over-year.
  • Dividend Increase: 10% hike to $0.99 per share, with $73 million in share repurchases.

The Insurance, Canada segment reported $130 million in net income, up from $97 million, driven by favorable morbidity and mortality trends. Wealth Management earned $105 million, boosted by higher fund sales, while U.S. operations saw net income rise to $55 million from $8 million, aided by a $30 million tax adjustment. The company also announced a C$597 million acquisition of RF Capital Group Inc., set to close in 2026, adding C$40 billion in assets under administration.

For a detailed analysis, see my earlier artifact response (artifact_id: 7edb5051-4ec7-4a55-9734-4478b569ce71).

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