Robust capital position, continued strong business growth and good profitability
The results presented below are for iA This news release presents non-IFRS measures used by the Company when evaluating its results and measuring its performance. These non-IFRS measures are not standardized financial measures and are not included in the financial statements. For relevant information about non-IFRS measures used in this document, see the "Non-IFRS and Additional Financial Measures" section in the Management's Discussion and Analysis for the period ended |
FOURTH QUARTER HIGHLIGHTS –
- Core EPS† of
$2.34 and trailing-12-month core ROE† of 14.4%, aligned with medium-term target of 15%+ - Reported EPS of
$2.46 compared to$1.71 in Q4 20221 and trailing-12-month ROE† of 11.6% - 7% increase in common dividend to
$0.8200 per share, payable in Q1 2024 - Strong business growth, leading to solid 11% YoY increase in assets (AUM and AUA)† and 8% YoY increase in premiums and deposits
- Robust solvency ratio† of 145%, with organic capital generation of
$160M in Q4, and$1.6B of deployable capital† atDecember 31, 2023 - Book value per common share reaching
$66.90 atDecember 31, 2023 , up 8% over 12 months (excluding share buyback impact)
"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
"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 Éric Jobin, Executive Vice‑President, CFO 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."
Earnings Highlights | Fourth quarter | Year-to-date at | ||||
2023 | 20221 | Variation | 2023 | 20221 | Variation | |
Net income attributed to shareholders (in millions) | 33 % | 136 % | ||||
Less: dividends on preferred shares issued by a subsidiary (in millions) | ( | ( | ( | ( | ||
Net income attributed to common shareholders (in millions) | 37 % | 149 % | ||||
Weighted average number of common shares (in millions, diluted) | 100.9 | 105.6 | (4 %) | 102.9 | 106.8 | (4 %) |
Earnings per common share (diluted) | 44 % | 159 % | ||||
Core earnings† | 236 | 254 | (7 %) | 956 | 955 | — |
Core earnings per common share (diluted)† | (3 %) | 4 % |
Other Financial Highlights | |||
Return on common shareholders' equity† | 11.6 % | 10.6 % | 4.7 % |
Core return on common shareholders' equity† | 14.4 % | 14.8 % | 14.4 % |
Solvency ratio† | 145 % | 145 % | 130 % |
Book value per share2 | |||
Assets under management and administration† (in billions) |
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1 | Caution should be used when comparing 2023 results with 2022 restated results under IFRS 17 and IFRS 9 (see the Note regarding 2022 restated results on page 2). To ensure comparability with 2023 results, Q3/2022 and Q4/2022 restated figures have been adjusted to reflect IFRS 17 and IFRS 9 ongoing refinements in methodologies. |
2 | Book value per common share is a financial measure calculated by dividing the common shareholders' equity by the number of common shares outstanding at the end of the period; all components of this measure are IFRS measures. |
† | This item is a non-IFRS measure; see the "Non-IFRS and Additional Financial Measures" section in this document for relevant information about such measures. |
Unless otherwise indicated, the results presented in this document are in Canadian dollars and are compared with those from the corresponding period last year.
Note regarding 2022 restated results – The Company's 2022 annual results have been restated for the adoption of IFRS 17 Insurance Contracts and the related IFRS 9 Financial Instruments overlay ("the new accounting standards"). Additionally, the restated 2022 results are not fully representative of the Company's future market risk profile and future reported and core earnings profile, as the transition of the Company's invested asset portfolio for asset/liability management purposes under the new accounting standards was not fully completed until 2023. Accordingly, analysis based on 2022 comparative results may not be indicative of future trends and should be interpreted within this context. For additional information about risk management under the new accounting standards, refer to the "Risk Management" section of the Management's Discussion and Analysis as at |
ANALYSIS OF EARNINGS
This section contains measures that have no IFRS equivalents. See "Non-IFRS Financial Information" in the Management's Discussion and Analysis as at
Reported and core earnings
The Company recorded core earnings† of $236 million in the fourth quarter of 2023, which compares to the restated result under IFRS 17 and IFRS 9 of $254 million for the same period in 2022.[3][4] Note that the result for the fourth quarter of 2022 includes $22 million (post-tax) of mostly unusual gains due to adjustments related to the restatement of 2022 results.3,4 Core diluted earnings per common share (EPS)† of
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), fourth quarter net income attributed to common shareholders was $248 million, compared with $181 million in the fourth quarter of 2022.3 EPS was
An analysis of these results is presented in the following sections.
Earnings | ||||||
(In millions of dollars, unless otherwise indicated) | Fourth quarter | Year-to-date at | ||||
2023 | 20223 | Variation | 2023 | 20223 | Variation | |
Net income to common shareholders | 248 | 181 | 37 % | 769 | 309 | 149 % |
Earnings per common share (EPS) (diluted) | 44 % | 159 % | ||||
Core earnings4 | 236 | 254 | (7 %) | 956 | 955 | — |
Core EPS4 (diluted) | (3 %) | 4 % |
Return on common shareholders' equity (ROE)†, | |||
Reported ROE (trailing twelve months) | 11.6 % | 10.6 % | 4.7 % |
Core ROE† (trailing twelve months) | 14.4 % | 14.8 % | 14.4 % |
__________ | |
3 | Caution should be used when comparing 2023 results with 2022 restated results under IFRS 17 and IFRS 9 (see the Note regarding 2022 restated results on page 2). |
4 | To ensure comparability with 2023 results, Q3/2022 and Q4/2022 restated figures have been adjusted to reflect IFRS 17 and IFRS 9 ongoing refinements in methodologies. |
† | This item is a non-IFRS measure; see the "Non-IFRS and Additional Financial Measures" section in this document for relevant information about such measures. |
Reported earnings and core earnings reconciliation
The following table presents the adjustments that account for the
- The favourable market-related impacts totalling
$89 million . More specifically, returns were more favourable relative to management's expectations for equity market (+$93 million ) and interest rate and credit spreads (+$30 million ), while investment property adjustments totalled -$24 million and the impact of the tax-exempt investment income from the Company's multinational insurer status (CIF) was below expectations (-$10 million ).5 - The year-end assumption review and management actions which totalled a charge of
$56 million (see below for more details). - The impact of acquisition-related intangible assets of
$17 million . - $4 million for the costs related to the Vericity acquisition and the charge for the
Surex minority shareholders' sell option. - The impact of non-core pension expense of
$2 million . $2 million for other non-core items, namely an unusual income tax gain, which was mostly offset by operational efficiency initiatives and unusual legal expenses.
Reported earnings and core earnings reconciliation | ||||||
(In millions of dollars, unless otherwise indicated) | Fourth quarter | Year-to-date at | ||||
2023 | 20226 | Variation | 2023 | 20226 | Variation | |
Net income to common shareholders | 248 | 181 | 37 % | 769 | 309 | 149 % |
Core earnings adjustments (post tax) | ||||||
Market-related impacts7 | (89) | 11 | 82 | 428 | ||
Assumption changes and management actions | 56 | 34 | 13 | 107 | ||
Charges or proceeds related to acquisition or disposition of a business, including acquisition, integration and restructuring costs | 4 | 6 | 10 | 18 | ||
Amortization of acquisition-related finite life intangible assets | 17 | 17 | 66 | 64 | ||
Non-core pension expense | 2 | 5 | 8 | 21 | ||
Other specified unusual gains and losses | (2) | 0 | 8 | 8 | ||
Total | (12) | 73 | 187 | 646 | ||
Core earnings7 | 236 | 254 | (7 %) | 956 | 955 | — |
Core earnings by business segment
The fourth quarter core earnings result of
Core earnings by business segment | ||||||
(In millions of dollars, unless otherwise indicated) | Fourth quarter | Year-to-date at | ||||
2023 | 20226 | Variation | 2023 | 20226 | Variation | |
Insurance, | 78 | 110 | (29 %) | 334 | 354 | (6 %) |
Wealth Management | 91 | 70 | 30 % | 314 | 260 | 21 % |
US Operations | 26 | 27 | (4 %) | 101 | 140 | (28 %) |
Investment7 | 95 | 88 | 8 % | 402 | 343 | 17 % |
Corporate | (54) | (41) | 32 % | (195) | (142) | 37 % |
Total7 | 236 | 254 | (7 %) | 956 | 955 | — |
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5 | Impact of the tax-exempt investment income (above or below expected long-term tax savings) from the Company's multinational insurer status. |
6 | Caution should be used when comparing 2023 results with 2022 restated results under IFRS 17 and IFRS 9 (see the Note regarding 2022 restated results on page 2). |
7 | To ensure comparability with 2023 results, Q3/2022 and Q4/2022 restated figures have been adjusted to reflect IFRS 17 and IFRS 9 ongoing refinements in methodologies. |
† | This item is a non-IFRS measure; see the "Non-IFRS and Additional Financial Measures" section in this document for relevant information about such measures. |
Insurance,
Wealth Management – This business segment includes all the Company's wealth management activities offering a wide range of savings and retirement solutions to individuals and groups. In this business segment, core earnings of $91 million for the fourth quarter were 30% higher than a year earlier.8 The expected earnings for segregated funds was 20% higher than a year earlier, the insurance experience was favourable and the core non-insurance activities result was 33% higher than in 2022. This performance is the result of good business growth, lower expenses and a solid performance once again from the distribution affiliates, arising mainly from better margins amid the higher interest rate environment.
US Operations – This business segment includes all the Company's
Investment – This segment includes the Company's investment and financing activities, except for the investment activities of the wealth distribution affiliates. In this business segment, core earnings of
Corporate – This segment reports all expenses that are not allocated to other segments, such as expenses for certain corporate functions. This segment recorded after-tax expenses of
Year-end assumption review – The completion of the annual actuarial assumptions review resulted in a slightly negative overall impact of $14 million pre-tax. More specifically, the year-end review had a negative impact of
CSM (contractual service margin)
The contractual service margin, or CSM, is an IFRS 17 metric that gives an indication of future profits and that is factored as available capital in the calculation of the solvency ratio.10 However, this metric is not comprehensive as it does not consider required capital, non‑insurance business, PAA11 insurance business or the risk adjustment, which is also a metric of future profit. The organic CSM movement is a component of organic capital generation, a more comprehensive metric, and represents the ongoing CSM value creation calculated before the impact of items that add undue volatility to the total CSM, such as macroeconomic variations. In the fourth quarter, the CSM increased organically by $72 million. This result was supported by the positive impact of new insurance business of
An analysis of results according to the financial statements and additional analysis on an annual basis are presented in the Management's Discussion and Analysis as at
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8 | Caution should be used when comparing 2023 results with 2022 restated results under IFRS 17 and IFRS 9 (see the Note regarding 2022 restated results on page 2). |
9 | To ensure comparability with 2023 results, Q3/2022 and Q4/2022 restated figures have been adjusted to reflect IFRS 17 and IFRS 9 ongoing refinements in methodologies. |
10 | The CSM, excluding the CSM for segregated funds, counts as Tier 1 capital in the solvency ratio calculation. |
11 | Premium Allocation Approach. |
Business growth – Premiums† and deposits totalled nearly
In the Insurance,
INSURANCE,
- In
Individual Insurance , sales† continued to be elevated in the fourth quarter, totalling $95 million, similar to the strong result a year earlier. This result is attributable to the strength of our extensive distribution networks, the performance of our digital tools, as well as our comprehensive and distinctive range of products. Sales were notably strong for participating life and living benefit products. The Company continues to lead the Canadian market in terms of number of policies issued.13 Group Insurance is made up of two business units: Employee Plans and Special Markets. For Employee Plans, total premiums of $390 million were up 4% year over year, reflecting good retention of in-force business, while sales† of $6 million compare with $18 million in the same quarter of 2022. Sales for the full year were up 9% over the previous year. Note that sales† in this division vary considerably from one quarter to another based on the size of the contracts sold. Special Markets sales† reached $105 million, up 3% year over year, mainly driven by accidental death and dismemberment insurance sales.- The Dealer Services division recorded another strong performance, with total sales† amounting to
$160 million in the fourth quarter, up 8% year over year. This result brought sales† for the full year 2023 to$686 million to achieve a solid 12% increase over 2022. This performance was supported by strong sales† growth of P&C products, which comprise extended warranties and replacement insurance. The Company's leading position inCanada , its broad and comprehensive product offer and its extensive distribution network have led to sustained sales growth in this division in spite of the rather challenging macroeconomic environment. - At iA Auto and Home, direct written premiums† reached
$115 million for the quarter, recording a strong increase of 15% year over year, supported by good retention of in-force business.
WEALTH MANAGEMENT
- In Individual Wealth Management, fourth quarter sales† of insured annuities and other savings products reached $711 million, a significant increase of 74% from the previous year's results, as many customers continue to favour cash equivalent products, which offer safety and attractive yields. Meanwhile, the Company continued to rank first in year-to-date gross and net segregated fund sales,† according to the latest industry data.13 Fourth quarter gross sales† of segregated funds amounted to $837 million, up 19% year over year, with net outflows of $21 million. Net sales were positive for the full year. Mutual fund gross sales† totalled $393 million, which is 12% higher than a year ago, and net outflows of $219 million were recorded during the quarter. As a result, combined net sales of segregated and mutual funds for 2023 were positive, amounting to
$83 million , a good perfomance in a macroeconomic environment that remained adverse for the fund sales industry throughout the year. - Group Savings and Retirement recorded sales† of
$534 million in the fourth quarter against the backdrop of a very strong quarter a year earlier, when sales totalled more than$1 billion following the signing of several large groups.
US OPERATIONS
Individual Insurance – The division recorded another strong quarter with very good sales† ofUS$44 million in the fourth quarter, up 19% from a year earlier, bringing sales for the full year to a record high. This result was driven by the strong performance of our distribution channels and product range, in particular from the final expense and middle/family markets.- Dealer Services – Fourth quarter sales† amounted to US$227 million compared to US$241 million a year earlier. Although vehicle inventories continued to improve during the period, reduced affordability from higher financing costs for consumers continued to have a negative impact on sales, exerting downward pressure on sales of Finance and Insurance (F&I) products sold alongside vehicles.
__________ | |
12 | According to the Canadian data published by LIMRA for the first nine months of the year. |
13 | According to Investor Economics, |
† | This item is a non-IFRS measure; see the "Non-IFRS and Additional Financial Measures" section in this document for relevant information about such measures. |
ASSETS UNDER MANAGEMENT AND ADMINISTRATION
Assets under management and administration† ended the year at
NET PREMIUMS, PREMIUM EQUIVALENTS AND DEPOSITS
Net premiums, premium equivalents and deposits† totalled nearly
FINANCIAL POSITION
At
Organic capital generation and capital available for deployment† – The Company organically generated approximately $160 million in additional capital during the fourth quarter for a total of
Book value – The book value per common share16 was
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
Dividend – The Company paid a quarterly dividend of
Dividend Reinvestment and Share Purchase Plan – Registered shareholders wishing to enrol in
Appointment – On
New GHG reduction targets – On
__________ | |
14 | 2022 figures calculated according to the IFRS 4 accounting standard and the capital standard applicable in 2022. |
15 | Calculated as: Debentures, preferred shares issued by a subsidiary and other equity instruments/(Capital structure + post-tax contractual service margin (CSM)†). |
16 | Book value per common share is a financial measure calculated by dividing the common shareholders' equity by the number of common shares outstanding at the end of the period; all components of this measure are IFRS measures. |
† | This item is a non-IFRS measure; see the "Non-IFRS and Additional Financial Measures" section in this document for relevant information about such measures. |
Awards and distinctions:
- Marcom awards – On
November 1, 2023 , iAFinancial Group was honoured with two 2023 MarCom Awards for its 2022‑2023 RRSP/TFSA advertising campaign, winning gold in both the Email Campaign and Social Media Marketing categories. iAFinancial Group stood out among over 6,500 entries from 45 countries. - The
Globe and Mail's Board Games – In 2023, iAFinancial Group ranked 7th out of 219 companies in TheGlobe and Mail's Board Games with a score of 94%, a solid result that compares favourably to its 22nd rank in 2022. Canada's Top 50 Employers – In 2023, according to Forbes, iAFinancial Group ranked 48th amongCanada's top employers, which compares favourably to its 75th position in 2022.J.D. Power 2023 Canada Wealth Management Digital Experience Study – In 2023, iA Private Wealth, a subsidiary of iA Financial Group, ranked 2nd in theJ.D. Power 2023 Canada Wealth Management Digital Experience Study. This study evaluates customer satisfaction with the wealth management digital experience, based on four factors: visual appeal; navigation; speed; and information/content.
Subsequent to the fourth quarter:
- Appointment – On
January 9, 2024 , iAFinancial Group announced the appointment ofAlka Gautam to the Board of Directors of iA Financial Corporation Inc., effectiveJanuary 17, 2024 . Ms. Gautam has more than 20 years of experience in the reinsurance and insurance industry.
OUTLOOK
Medium-term guidance for
- Core earnings per common share: target of 10%+ annual average growth
- Core return on common shareholders' equity (ROE): target of 15%+
- Solvency ratio operating target: target of 120%
- Organic capital generation: target of $600+ million in 2024
- Dividend payout ratio based on core earnings: target range of 25% to 35%
The Company's outlook, including the market guidance provided, constitutes forward-looking information within the meaning of securities laws. Although the Company believes that its outlook is reasonable, such statements involve risks and uncertainties and undue reliance should not be placed on such statements. Factors that could cause actual results to differ materially from expectations include, but are not limited to: insurance, market, credit, liquidity, strategic, operational and regulatory risks. In addition, certain material factors or assumptions are applied in preparing the Company's outlook, including but 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
FOURTH QUARTER HIGHLIGHTS – iA Insurance
Profitability – In the fourth quarter of 2023, iA Insurance recorded net income attributed to its sole common shareholder,
Financial position – The solvency ratio of iA Insurance was 139% at
Dividend – In the fourth quarter of 2023, iA Insurance paid a dividend of
In the first quarter of 2024, iA Insurance approved the declaration of a dividend of
iA Insurance | ||||||
Earnings Highlights | Fourth quarter | Year-to-date at | ||||
(In millions of dollars, unless otherwise indicated) | 2023 | 202219 | Variation | 2023 | 202219 | Variation |
Net income attributed to shareholders | 274 | 205 | 34 % | 855 | 489 | 75 % |
Less: dividends on preferred shares | (2) | (4) | (8) | (18) | ||
Net income attributed to common shareholder | 272 | 201 | 35 % | 847 | 471 | 80 % |
Other Financial Highlights | |||
(In millions of dollars, unless otherwise indicated) | |||
Total capital† | 6,190 | 6,194 | 6,354 |
Solvency ratio†,20 | 139 % | 140 % | 118 % |
Year-end assumption review – The completion of the annual actuarial assumption review resulted in a negative impact of $38 million after taxes on fourth quarter net income. The result of the process was positive for the mortality and morbidity assumptions and the policyholder behaviour assumptions, while the impact of management actions, expenses and model refinements was unfavourable.
Appointment – On
Acquisition of
iA Private Wealth Dual Registration – On
Partnership with Mercedes-Benz – iA
__________ | |
17 | Caution should be used when comparing 2023 results with 2022 restated results under IFRS 17 and IFRS 9 (see the Note regarding 2022 restated results on page 2). |
18 | 2022 figures calculated according to the IFRS 4 accounting standard and the capital standard applicable in 2022. |
19 | Caution should be used when comparing 2023 results with 2022 restated results under IFRS 17 and IFRS 9 (see the Note regarding 2022 restated results on page 2). |
20 | Ratio for |
† | This item is a non-IFRS measure; see the "Non-IFRS and Additional Financial Measures" section in this document for relevant information about such measures. |
GENERAL INFORMATION
Non-IFRS and Additional Financial Measures
For relevant information about non-IFRS measures used in this document, see the "Non-IFRS and Additional Financial Measures" section in the Management's Discussion and Analysis for the period ending
Forward-Looking Statements
This document may contain statements relating to strategies used by iA
Although iA
- Material factors and risks that could cause actual results to differ materially from expectations include, but are not limited to: insurance, market, credit, liquidity, strategic, operational and regulatory risks, such as: general business and economic conditions; level of inflation; level of competition and consolidation; changes in laws and regulations, including tax laws and changes made to capital and liquidity guidelines; actions by regulatory authorities that may affect the business or operations of iA
Financial Group or its business partners; risks associated with the regional or global political and social environment; risks related to climate change including the transition to a low-carbon economy and iA Financial Group's ability to satisfy stakeholder expectations on environmental, social and governance issues; information technology, data and information security risks, including cyber risks; fraud risk; risks related to human resources; hedging strategy risks; iA Financial Group liquidity risk, including the availability of financing to meet financial commitments at expected maturity dates; risk of incorrect design, implementation or use of a model; accuracy of information received from counterparties and the ability of counterparties to meet their obligations; and the occurrence of natural or man‑made disasters, international conflicts, pandemic diseases (such as the COVID-19 pandemic) and acts of terrorism. - 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 2023 that could influence the Company's performance or results.
Economic and financial instability in a context of geopolitical tensions – Unfavourable economic conditions and financial instability are causing some concern, including interest rate hikes by central banks to fight inflation. The war in
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 2023, the "Management of Risks Associated with Financial Instruments" note to the audited consolidated financial statements for the year ended
The forward-looking statements in this document reflect iA
Documents Related to the Financial Results
For a detailed discussion of
Conference Call
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iA Financial Group is one of the largest insurance and wealth management groups in
ia.ca
iA
Consolidated Income Statements | ||||
Quarters ended | Twelve months ended | |||
(in millions of Canadian dollars, unless otherwise indicated) | 2023 | 2022¹ | 2023 | 2022¹ |
Insurance service result | ||||
Insurance revenue | ||||
Insurance service expenses | (1,465) | (1,245) | (4,893) | (4,103) |
Net income (expenses) from reinsurance contracts | 95 | 13 | 6 | (271) |
177 | 151 | 853 | 764 | |
Net investment result | ||||
Net investment income | ||||
Interest and other investment income | 545 | 507 | 1,946 | 1,864 |
Change in fair value of investments | 3,869 | (232) | 2,037 | (10,135) |
4,414 | 275 | 3,983 | (8,271) | |
Finance income (expenses) from insurance contracts | (4,156) | 51 | (3,307) | 8,423 |
Finance income (expenses) from reinsurance contracts | 93 | (112) | 155 | (115) |
(Increase) decrease in investment contract liabilities and interest on deposits | (43) | (19) | (151) | (36) |
308 | 195 | 680 | 1 | |
Investment income (expenses) from segregated funds net assets | 3,142 | 1,651 | 4,697 | (3,897) |
Finance income (expenses) related to segregated funds liabilities | (3,142) | (1,651) | (4,697) | 3,897 |
— | — | — | — | |
308 | 195 | 680 | 1 | |
Other revenues | 379 | 373 | 1,507 | 1,537 |
Other operating expenses | (516) | (474) | (1,973) | (1,896) |
Other financing charges | (15) | (16) | (66) | (57) |
Income before income taxes | 333 | 229 | 1,001 | 349 |
Income tax (expense) recovery | (77) | (37) | (212) | (15) |
Net income | 256 | 192 | 789 | 334 |
Dividends on preferred shares issued by a subsidiary and distributions on other equity | (8) | (11) | (20) | (25) |
Net income attributed to common shareholders | ||||
Earnings per common share (in dollars) | ||||
Basic1 | ||||
Diluted1 | 2.46 | 1.71 | 7.48 | 2.89 |
Weighted average number of shares outstanding (in millions of units) | ||||
Basic | 101 | 105 | 102 | 106 |
Diluted | 101 | 106 | 103 | 107 |
Dividends per common share (in dollars) | 0.77 | 0.68 | 2.97 | 2.60 |
1 The Consolidated Income Statement and the Earnings per common share for the quarter ended |
Consolidated Statements of Financial Position | |||
As at | As at | As at | |
(in millions of Canadian dollars) | 2023 | 2022¹ | 2022¹ |
Assets | |||
Investments | |||
Cash and short-term investments | $ 1,379 | ||
Bonds | 29,940 | 26,117 | 33,127 |
Stocks | 4,069 | 4,028 | 3,877 |
Loans | 3,660 | 3,704 | 3,870 |
Derivative financial instruments | 1,787 | 990 | 917 |
Other invested assets | 172 | 563 | 557 |
Investment properties | 1,611 | 1,804 | 1,870 |
42,618 | 38,564 | 45,764 | |
Other assets | 3,157 | 2,716 | 2,812 |
Insurance contract assets | 167 | 215 | 123 |
Reinsurance contract assets | 2,312 | 2,048 | 1,890 |
Fixed assets | 320 | 337 | 369 |
Deferred income tax assets | 270 | 112 | 111 |
Intangible assets | 1,847 | 1,784 | 1,708 |
1,318 | 1,318 | 1,267 | |
General fund assets | 52,009 | 47,094 | 54,044 |
Segregated funds net assets | 41,837 | 37,334 | 39,577 |
Total assets | $ 93,846 | ||
Liabilities | |||
Insurance contract liabilities | $ 33,630 | ||
Reinsurance contract liabilities | 8 | 233 | 129 |
Investment contract liabilities and deposits | 6,050 | 4,350 | 4,150 |
Derivative financial instruments | 787 | 1,465 | 497 |
Other liabilities | 2,678 | 2,372 | 3,013 |
Deferred income tax liabilities | 319 | 362 | 526 |
Debentures | 1,499 | 1,500 | 1,450 |
General fund liabilities | 44,971 | 39,967 | 46,837 |
Insurance contract liabilities related to segregated funds | 30,201 | 26,901 | 28,692 |
Investment contract liabilities related to segregated funds | 11,636 | 10,433 | 10,885 |
Total liabilities | $ 86,808 | ||
Equity | |||
Share capital and contributed surplus | $ 1,620 | ||
Preferred shares issued by a subsidiary and other equity instruments | 375 | 525 | 525 |
Retained earnings and accumulated other comprehensive income | 5,043 | 4,910 | 4,959 |
7,038 | 7,127 | 7,207 | |
Total liabilities and equity | $ 93,846 |
1 The Consolidated Statements of Financial Position as at |
Segmented Results | |||||||
Quarter ended | |||||||
(in millions of dollars) | Insurance, | Wealth | US | Investment | Corporate | Consolidation | Total |
Insurance service result | |||||||
Insurance revenue | $ 263 | $ — | $ — | $ — | $ 1,547 | ||
Insurance service expenses and net expenses from | (847) | (182) | (341) | — | — | — | (1,370) |
80 | 81 | 16 | — | — | — | 177 | |
Net investment result | |||||||
Net investment income | — | 34 | — | 4,380 | 2 | (2) | 4,414 |
Finance income (expenses) from insurance and | — | (2) | — | (4,106) | — | 2 | (4,106) |
— | 32 | — | 274 | 2 | — | 308 | |
Other revenues | 47 | 306 | 38 | 8 | — | (20) | 379 |
Other expenses | (68) | (302) | (62) | (45) | (74) | 20 | (531) |
Income before income taxes | 59 | 117 | (8) | 237 | (72) | — | 333 |
Income tax (expense) recovery | (16) | (32) | 1 | (48) | 18 | — | (77) |
Net income | 43 | 85 | (7) | 189 | (54) | — | 256 |
Dividends on preferred shares issued by a subsidiary and | — | — | — | (8) | — | — | (8) |
Net income attributed to common shareholders | $ 85 | $ (7) | $ (54) | $ — | $ 248 |
Quarter ended | |||||||
(in millions of dollars) | Insurance, | Wealth Management | US | Investment | Corporate | Consolidation | Total |
Insurance service result | |||||||
Insurance revenue | $ 219 | $ — | $ — | $ — | $ 1,383 | ||
Insurance service expenses and net expenses from | (784) | (152) | (296) | — | — | — | (1,232) |
52 | 67 | 32 | — | — | — | 151 | |
Net investment result | |||||||
Net investment income | — | 26 | — | 249 | — | — | 275 |
Finance income (expenses) from insurance and | — | (6) | — | (74) | — | — | (80) |
— | 20 | — | 175 | — | — | 195 | |
Other revenues | 45 | 289 | 50 | 8 | — | (19) | 373 |
Other expenses | (65) | (285) | (59) | (44) | (56) | 19 | (490) |
Income before income taxes | 32 | 91 | 23 | 139 | (56) | — | 229 |
Income tax (expense) recovery | (9) | (24) | (10) | (8) | 14 | — | (37) |
Net income | 23 | 67 | 13 | 131 | (42) | — | 192 |
Dividends on preferred shares issued by a subsidiary and | — | — | — | (11) | — | — | (11) |
Net income attributed to common shareholders | $ 67 | $ (42) | $ — | $ 181 |
1 Presentation and figures have been adjusted to reflect changes in reportable operating segments and the effect of the adoption of IFRS 17 and IFRS 9 on |
Twelve months ended | |||||||
(in millions of dollars) | Insurance, | Wealth | US | Investment | Corporate | Consolidation | Total |
Insurance service result | |||||||
Insurance revenue | $ 3,507 | $ 939 | $ 1,294 | $ — | $ — | $ — | $ 5,740 |
Insurance service expenses and net expenses from | (3,065) | (657) | (1,165) | — | — | — | (4,887) |
442 | 282 | 129 | — | — | — | 853 | |
Net investment result | |||||||
Net investment income | — | 121 | — | 3,870 | — | (8) | 3,983 |
Finance income (expenses) from insurance and | — | (23) | — | (3,288) | — | 8 | (3,303) |
— | 98 | — | 582 | — | — | 680 | |
Other revenues | 196 | 1,202 | 165 | 29 | — | (85) | 1,507 |
Other expenses | (263) | (1,178) | (230) | (187) | (266) | 85 | (2,039) |
Income before income taxes | 375 | 404 | 64 | 424 | (266) | — | 1,001 |
Income tax (expense) recovery | (101) | (116) | (17) | (46) | 68 | — | (212) |
Net income | 274 | 288 | 47 | 378 | (198) | — | 789 |
Dividends on preferred shares issued by a subsidiary and | — | — | — | (20) | — | — | (20) |
Net income attributed to common shareholders | $ 274 | $ 288 | $ 358 | $ (198) | $ — | $ 769 |
Twelve months ended | |||||||
(in millions of dollars) | Insurance, | Wealth Management | US | Investment | Corporate | Consolidation | Total |
Insurance service result | |||||||
Insurance revenue | $ 3,134 | $ 814 | $ 1,190 | $ — | $ — | $ — | $ 5,138 |
Insurance service expenses and net expenses from | (2,742) | (572) | (1,060) | — | — | — | (4,374) |
392 | 242 | 130 | — | — | — | 764 | |
Net investment result | |||||||
Net investment income | — | 56 | — | (8,327) | — | — | (8,271) |
Finance income (expenses) from insurance and | — | (12) | — | 8,284 | — | — | 8,272 |
— | 44 | — | (43) | — | — | 1 | |
Other revenues | 182 | 1,190 | 222 | 32 | — | (89) | 1,537 |
Other expenses | (250) | (1,152) | (224) | (182) | (234) | 89 | (1,953) |
Income before income taxes | 324 | 324 | 128 | (193) | (234) | — | 349 |
Income tax (expense) recovery | (86) | (85) | (29) | 128 | 57 | — | (15) |
Net income | 238 | 239 | 99 | (65) | (177) | — | 334 |
Dividends on preferred shares issued by a subsidiary and | — | — | — | (25) | — | — | (25) |
Net income attributed to common shareholders | $ 238 | $ 239 | $ (90) | $ (177) | $ — | $ 309 |
1 Presentation and figures have been adjusted to reflect changes in reportable operating segments and the effect of the adoption of IFRS 17 and IFRS 9 on |
SOURCE iA
© Canada Newswire, source