IA Financial : Shareholders’ Report (q1 2025 shareholders report)

Report to Shareholders

2025 First Quarter

For the Quarter Ended March 31, 2025

MANAGEMENT'S DISCUSSION AND ANALYSIS

This Management's Discussion and Analysis for iA Financial Corporation Inc. ("iA Financial Group" or the "Company") is dated May 7, 2025. This Management's Discussion and Analysis should be read in conjunction with the unaudited interim condensed consolidated financial statements for the three months ended March 31, 2025 and 2024. It should also be read with the Management's Discussion and Analysis and the audited consolidated financial statements for the year ended December 31, 2024. The Supplemental Information Package for the last nine quarters may contain additional data that complements the information in this Management's Discussion and Analysis and is not and should not be considered incorporated by reference into this document.

The financial information is presented in accordance with IFRS® Accounting Standards (referred to as "IFRS" in this document), as they apply to life insurance companies in Canada, and with the accounting requirements prescribed by the regulatory authorities. The Company also uses non-IFRS and other financial measures when evaluating its results and measuring its performance. For relevant information about non-IFRS and other financial measures, see the "Non-IFRS and Additional Financial Measures" and the "Reconciliation of Select Non-IFRS Financial Measures" sections in this document.

The Company's business units are grouped into reportable operating segments based on their similar economic characteristics.

The Company's operating segments, which reflect its organizational structure for decision making, are described below according to their main products and services or their specific characteristics:

Insurance, Canada - Life and health insurance products, auto and home insurance products, creditor insurance, replacement insurance and warranties, extended warranties and other ancillary products for dealer services, and specialized products for special markets.

Wealth Management - Products and services for savings plans, retirement funds and segregated funds, in addition to securities brokerage (including cross-border services), trust operations and mutual funds.

US Operations - Life insurance products and extended warranties relating to dealer services sold in the United States.

Investment - Investment and financing activities of the Company, except the investment activities of wealth distribution affiliates.

Corporate - All expenses that are not allocated to other operating segments, such as expenses for certain corporate functions.

Information concerning these segments is included in our annual and interim consolidated financial statements and accompanying notes and this Management's Discussion and Analysis.

† This item is a non-IFRS financial measure; see the "Non-IFRS and Additional Financial Measures" section and the "Reconciliation of Select Non-IFRS Financial Measures" section in this document for relevant information about such measures and a reconciliation of non-IFRS financial measures to the most directly comparable IFRS measure.

†† This item is a non-IFRS ratio; 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.

TABLE OF CONTENTS

1. HIGHLIGHTS FOR THE FIRST QUARTER 3
2. BUSINESS GROWTH 6
3. ANALYSIS OF EARNINGS BY BUSINESS SEGMENT 9
4. ANALYSIS ACCORDING TO THE FINANCIAL STATEMENTS 17
5. CSM MOVEMENT ANALYSIS 21
6. FINANCIAL POSITION 22
7. INVESTMENTS 25
8. DECLARATION OF DIVIDEND 27
9. RISK MANAGEMENT AND SENSITIVITIES - UPDATE 28
10. RECONCILIATION OF SELECT NON-IFRS FINANCIAL MEASURES 30
11. NON-IFRS AND ADDITIONAL FINANCIAL MEASURES 32
12. NOTICE AND GENERAL INFORMATION 39
13. CONSOLIDATED FINANCIAL STATEMENTS 41
14. NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 47

    † This item is a non-IFRS financial measure; see the "Non-IFRS and Additional Financial Measures" section and the "Reconciliation of Select Non-IFRS Financial Measures" section in this document for relevant information about such measures and a reconciliation of non-IFRS financial measures to the most directly comparable IFRS measure.

    †† This item is a non-IFRS ratio; see the "Non-IFRS and Additional Financial Measures" section in this document for relevant information about such measures.

15. GENERAL INFORMATION 71

1. ‌Highlights for the First Quarter

   Profitability
   	First quarter
   	2025	2024	Variation
   Net income attributed to common shareholders (in millions)	$186	$233	(20%)
   Core earnings† (in millions)	$273	$243	12%
   Weighted average number of common shares (diluted) (in millions)	94	100	(6%)
   Earnings per common share (EPS) (diluted)	$1.98	$2.34	(15%)
   Core earnings per common share (core EPS) (diluted)††	$2.91	$2.44	19%

   Return on common shareholders' equity (ROE)1	March 31, 2025	Dec. 31, 2024	March 31, 2024
   ROE (trailing 12 months)	13.0%	13.9%	10.9%
   Core ROE†† (trailing 12 months)	16.1%	15.9%	14.6%

   The Company recorded core earnings† of $273 million in the first quarter of 2025 and core diluted earnings per common share (core 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% at March 31, 2025. Annualized core ROE†† was 15.8% for the first quarter.

   Net income attributed to common shareholders was $186 million and diluted earnings per common share (EPS) was $1.98, which compares to $2.34 in the first quarter of 2024. Return on common shareholders' equity (ROE) for the trailing 12 months was 13.0% at March 31, 2025. Annualized ROE was 10.8% for the first quarter.

   An analysis of earnings by business segment for the quarter is provided in the "Analysis of Earnings by Business Segment" section of this document. Also, refer to the "Reconciliation of Select Non-IFRS Financial Measures" section of this document for reconciliations between core earnings† and net income (loss) attributed to common shareholders.

   Business growth - The strong sales2momentum 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.3In the Wealth Management segment, the Company had record quarterly sales and continued to rank first for both gross and net segregated fund4sales, with net inflows totalling nearly $1,173 million. 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,5premium equivalents and deposits,5totalling nearly $5.8 billion, a 19% increase compared to the same period last year. Also, total assets under management6and total assets under administration6exceeded $264 billion, an increase of 15% over the last 12 months.

   Financial position - The Company's solvency ratio7was 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.8The Company's financial leverage ratio†† of 14.8% at March 31, 2025 compares to 17.3% at the end of the previous quarter.

   1Consolidated net income attributed to common shareholders divided by the average common shareholders' equity for the period. Return on common shareholders' equity is a supplementary financial measure. Refer to the "Non-IFRS and Additional Financial Measures" section of this document for more information on return on common shareholders' equity.

   2Sales is a supplementary financial measure. Refer to the "Non-IFRS and Additional Financial Measures" section of this document for more information on sales.

   3According to the latest Canadian data published by LIMRA.

   4According to the latest industry data from Investor Economics.

   5Net premiums and premium equivalents and deposits are supplementary financial measures. Refer to the "Non-IFRS and Additional Financial Measures" section of this document for more information.

   6Assets under management and assets under administration are supplementary financial measures. Refer to the "Non-IFRS and Additional Financial Measures" section of this document for more information.

   7The solvency ratio is calculated in accordance with the Capital Adequacy Requirements Guideline - Life and Health Insurance (CARLI) mandated by the Autorité des marchés financiers du Québec (AMF). This financial measure is exempt from certain requirements of Regulation 52-112 respecting Non-GAAP and Other Financial Measures Disclosure according to AMF Blanket Order No. 2021-PDG-0065. Refer to the "Non-IFRS and Additional Financial Measures" section of this document for more information.

   8Organic capital generation is a supplementary financial measure. Refer to the "Non-IFRS and Additional Financial Measures" section of this document for more information.

   Organic capital generation and capital available for deployment9 - The Company organically generated $125 million in additional capital during the first quarter. 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 share10was $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 common 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. 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. 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.

   9Capital available for deployment is a supplementary financial measure. Refer to the "Non-IFRS and Additional Financial Measures" section of this document for more information.

   10Book value per common share is calculated by dividing the common shareholders' equity, which represents the total equity less other equity instruments, by the number of common shares outstanding at the end of the period.

   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.

2. ‌Business Growth

   Business growth is measured by growth in sales, premiums, premium equivalents and deposits and assets under management and administration.

   Sales - Sales measure the Company's ability to generate new business and are defined as fund entries on new business written during the period. For more information on the calculation and presentation of sales within each business unit, refer to the "Non-IFRS and Additional Financial Measures" section in this document.

   Sales Growth by Business Segment
   (In millions of dollars, unless otherwise indicated)	First quarter
   	2025	2024	Variation
   INSURANCE, CANADA
   Individual Insurance
   Minimum premiums	86	80	8%
   Excess premiums	13	9	44%
   Total	99	89	11%
   Group Insurance
   Employee Plans	70	30	133%
   Special Markets	108	106	2%
   Total	178	136	31%
   Dealer Services
   Creditor Insurance	35	39	(10%)
   P&C Insurance	128	109	17%
   Total	163	148	10%
   General Insurance
   iA Auto and Home	129	114	13%
   WEALTH MANAGEMENT
   Individual Wealth Management
   Gross sales
   Segregated funds	1,939	1,278	52%
   Mutual funds	647	486	33%
   Other savings products	467	581	(20%)
   Total	3,053	2,345	30%
   Net sales
   Segregated funds	1,173	557	616
   Mutual funds	(62)	(143)	81
   Total	1,111	414	697
   Group Savings and Retirement	841	918	(8%)
   US OPERATIONS ($US)
   Individual Insurance	68	42	62%
   Dealer Services	306	248	23%

   INSURANCE, CANADA 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.1 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 members 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. 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. General Insurance (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

   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.2This 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 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. 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.

   1According to the latest Canadian data published by LIMRA.

   2According to the latest industry data from Investor Economics.

   ASSETS UNDER MANAGEMENT AND ASSETS UNDER ADMINISTRATION Assets under management and assets under administration - Assets under management and assets under administration measure the Company's ability to generate fees, particularly for investment funds, funds under management and funds under administration.

   Assets Under Management and Assets Under Administration
   (In millions of dollars)	March 31, 2025	December 31, 2024	March 31, 2024
   Assets under management
   General fund3	58,036	57,286	52,213
   Segregated funds	53,640	52,575	45,192
   Mutual funds	13,101	13,290	12,741
   Other	5,876	5,579	4,679
   Subtotal	130,653	128,730	114,825
   Assets under administration	133,368	130,636	114,485
   Total	264,021	259,366	229,310

   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 - Net premiums, premium equivalents and deposits include entries from both new business written and in-force contracts. For more information on the calculation and presentation of net premiums, premium equivalents and deposits within each business unit, refer to the "Non-IFRS and Additional Financial Measures" section in this document.

   Net Premiums, Premium Equivalents and Deposits4
   (In millions of dollars)	First quarter
   	2025	2024	Variation
   Insurance, Canada
   Individual Insurance	581	516	65
   Group Insurance	531	506	25
   Dealer Services	139	128	11
   General Insurance5	141	124	17
   Wealth Management
   Individual Wealth Management	3,053	2,345	708
   Group Savings and Retirement	835	911	(76)
   US Operations
   Individual Insurance	255	173	82
   Dealer Services	252	176	76
   Total	5,787	4,879	908

   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.

   3All general fund assets, including insured annuities, other savings products and other accumulation contracts.

   4Premium equivalents and deposits include all premiums collected by the Company for its insurance and annuity activities (and posted to the general fund), all amounts collected for segregated funds (which are also considered to be premiums), deposits from the Group Insurance, Group Savings and Retirement and US Operations sectors, and mutual fund deposits.

   5Includes iA Auto and Home and some minor consolidation adjustments.

3. ‌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† are provided in the following pages.

   Core earnings†
   (In millions of dollars, unless otherwise indicated)	Q1/2025	Quarter-over-quarter		Year-over-year
   		Q4/2024	Variation	Q1/2024	Variation
   Insurance, Canada	100	116	(14%)	92	9%
   Wealth Management	106	112	(5%)	95	12%
   US Operations	30	26	15%	19	58%
   Investment	85	102	(17%)	86	(1%)
   Corporate	(48)	(69)	(30%)	(49)	(2%)
   Total	273	287	(5%)	243	12%
   Net income attributed to common shareholders
   Insurance, Canada	87	41	112%	83	5%
   Wealth Management	95	101	(6%)	88	8%
   US Operations	19	(13) not meaningful		12	58%
   Investment	35	163	(79%)	100	(65%)
   Corporate	(50)	(72)	(31%)	(50) -%
   Total	186	220	(15%)	233	(20%)

   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.†

   Net Income Attributed to Common Shareholders and Core Earnings† Reconciliation - Consolidated
   (In millions of dollars, unless otherwise indicated)	First quarter
   	2025	2024	Variation
   Net income attributed to common shareholders	186	233	(20%)
   Core earnings adjustments (post tax)
   Market-related impacts	63	(9)
   Interest rates and credit spreads	(16)	(3)
   Equity	59	(32)
   Investment properties	16	23
   CIF1	4	3
   Currency	-	-
   Assumption changes and management actions	(5)	(5)
   Charges or proceeds related to acquisition or disposition of a business, including acquisition, integration and restructuring costs	2	3
   Amortization of acquisition-related finite life intangible assets	21	17
   Non-core pension expense2	4	4
   Other specified unusual gains and losses	2	-
   Total	87	10
   Core earnings†	273	243	12%

   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.

     1Impact of the tax-exempt investment income (above or below expected long-term tax impacts) from the Company's multinational insurer status.

     2Pension expense that represents the difference between the asset return (interest income on plan assets) calculated using the expected return on plan assets and the IFRS prescribed pension plan discount rate.

     Insurance, Canada

     This operating business segment includes all Canadian insurance activities offering a wide range of life, health, auto and home insurance coverage to individuals and groups, as well as vehicle warranties.

     Net Income and Core Earnings† Reconciliation - Insurance, Canada
     (In millions of dollars, unless otherwise indicated)	First quarter
     	2025	2024	Variation
     Net income attributed to common shareholders	87	83	5%
     Core earnings adjustments (post tax)
     Market-related impacts	-	-
     Assumption changes and management actions	-	-
     Charges or proceeds related to acquisition or disposition of a business, including acquisition, integration and restructuring costs	-	2
     Amortization of acquisition-related finite life intangible assets	5	4
     Non-core pension expense	3	3
     Other specified unusual gains and losses	5	-
     Total	13	9
     Core earnings†	100	92	9%

     Results for the first quarter of 2025

     • 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 earnings3were 9% higher, reflecting an increase in the combined risk adjustment (RA) release3and CSM recognized for services provided3and an increase in expected earnings on Premium Allocation Approach (PAA)3business from iA Auto and Home. Additionally, the impact of new insurance business3from Employee Plans was lower compared to a year ago. The increase in core non-insurance activities3was driven by good performances from Dealer Services and distribution activities. Lastly, core insurance experience3gains 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.

       3This item is a component of the drivers of earnings (DOE). Refer to the "Non-IFRS and Additional Financial Measures" section in this document for more information on

       presentation according to the DOE. For a reconciliation of core earnings† to net income attributed to common shareholders through the drivers of earnings (DOE), refer to the "Reconciliation of Select Non-IFRS Financial Measures" section of this document.

       Wealth Management

       This operating business segment includes all the Company's wealth management activities offering a wide range of savings and retirement solutions to individuals and groups.

       Net Income and Core Earnings† Reconciliation - Wealth Management
       (In millions of dollars, unless otherwise indicated)	First quarter
       	2025	2024	Variation
       Net income attributed to common shareholders	95	88	8%
       Core earnings adjustments (post tax)
       Market-related impacts	-	-
       Assumption changes and management actions	-	-
       Charges or proceeds related to acquisition or disposition of a business, including acquisition, integration and restructuring costs	-	-
       Amortization of acquisition-related finite life intangible assets	7	6
       Non-core pension expense	1	1
       Other specified unusual gains and losses	3	-
       Total	11	7
       Core earnings†	106	95	12%

       Results for the first quarter of 2025

     • 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 activities were higher, reflecting a good performance from Group Savings and Retirement, arising mainly from higher net revenue on assets.

       US Operations

       This operating business segment includes all the Company's U.S. activities offering individuals a range of life insurance and vehicle warranty products.

       Net Income and Core Earnings† Reconciliation - US Operations
       (In millions of dollars, unless otherwise indicated)	First quarter
       	2025	2024	Variation
       Net income attributed to common shareholders	19	12	58%
       Core earnings adjustments (post tax)
       Market-related impacts	-	-
       Assumption changes and management actions	-	-
       Charges or proceeds related to acquisition or disposition of a business, including acquisition, integration and restructuring costs	-	-
       Amortization of acquisition-related finite life intangible assets	9	7
       Non-core pension expense	-	-
       Other specified unusual gains and losses	2	-
       Total	11	7
       Core earnings†	30	19	58%

       Results for the first quarter of 2025

     • 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 million4increase in the core insurance service result,5which includes the contributions of the Prosperity blocks of business and $8 million4from the Vericity acquisition.

       • A $1 million4increase in core non-insurance activities, which includes a significant year-over-year increase of

         $5 million4from Dealer Services and a $4 million4loss from the distribution activities of Vericity.

       • An increase in core other expenses5as 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.

         4Before taxes.

         5This item is a component of the drivers of earnings (DOE). Refer to the "Non-IFRS and Additional Financial Measures" section in this document for more information on presentation according to the DOE. For a reconciliation of core earnings† to net income attributed to common shareholders through the drivers of earnings (DOE), refer to the "Reconciliation of Select Non-IFRS Financial Measures" section of this document.

         Investment

         This accounting segment includes the Company's investment and financing activities, except for the investment activities of the wealth distribution affiliates.

         Net Income and Core Earnings† Reconciliation - Investment
         (In millions of dollars, unless otherwise indicated)	First quarter
         	2025	2024	Variation
         Net income attributed to common shareholders	35	100	(65%)
         Core earnings adjustments (post tax)
         Market-related impacts	63	(9)
         Interest rates and credit spreads	(16)	(3)
         Equity	59	(32)
         Investment properties	16	23
         CIF6	4	3
         Currency	-	-
         Assumption changes and management actions	(5)	(5)
         Charges or proceeds related to acquisition or disposition of a business, including acquisition, integration and restructuring costs	-	-
         Amortization of acquisition-related finite life intangible assets	-	-
         Non-core pension expense	-	-
         Other specified unusual gains and losses	(8) -
         Total	50	(14)
         Core earnings†	85	86	(1%)

         Results for the first quarter of 2025

     • 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 result7of $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 experience7was 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.

       6Impact of the tax-exempt investment income (above or below expected long-term tax impacts) from the Company's multinational insurer status.

       7This item is a component of the drivers of earnings (DOE). Refer to the "Non-IFRS and Additional Financial Measures" section in this document for more information on presentation according to the DOE. For a reconciliation of core earnings† to net income attributed to common shareholders through the drivers of earnings (DOE), refer to the "Reconciliation of Select Non-IFRS Financial Measures" section of this document.

       Corporate

       This accounting segment reports all expenses that are not allocated to other segments, such as expenses for certain corporate functions. These expenses include, among other things, investments in the digital transformation, M&A prospecting activities, digital data and security projects and regulatory compliance projects.

       Net Income and Core Earnings† Reconciliation - Corporate
       (In millions of dollars, unless otherwise indicated)	First quarter
       	2025	2024	Variation
       Net income (net loss) attributed to common shareholders	(50)	(50)	-%
       Core earnings (losses) adjustments (post tax)
       Market-related impacts	-	-
       Assumption changes and management actions	-	-
       Charges or proceeds related to acquisition or disposition of a business, including acquisition, integration and restructuring costs	2	1
       Amortization of acquisition-related finite life intangible assets	-	-
       Non-core pension expense	-	-
       Other specified unusual gains and losses	-	-
       Total	2	1
       Core earnings (losses)†	(48)	(49)	(2%)

       Results for the first quarter of 2025

     • 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 is composed of 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.

     • 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 leverage8and temporary savings that may reverse in future quarters.

       8Operating leverage is the difference between revenue growth and expense growth at a consolidated level.

       Consolidated items

       Income taxes

       Income taxes represent the value of amounts payable under the tax laws and include both tax payable and deferred income taxes. A life insurer's investment income taxes and premium taxes are not included in these amounts.

       Results for the first quarter of 2025

     • Income tax expense amounted to $46 million compared to $71 million for the same period of 2024. This result comprises the tax charge included in core earnings† as well as core taxes adjustments.

     • Core taxes adjustments by segments, that mostly sum to zero on a consolidated basis, totalled $1 million in the first quarter.

     • Core income taxes9in the first quarter was $82 million, for a core effective tax rate†† of 22.5%. This result is close to management expectations.

       Distributions on other equity instruments and dividends on preferred shares issued by a subsidiary

       This item represents the after-tax dividends on preferred shares issued by a subsidiary and distributions on other equity instruments, which amounted to $9 million in the first quarter.

       9This item is a component of the drivers of earnings (DOE). Refer to the "Non-IFRS and Additional Financial Measures" section in this document for more information on presentation according to the DOE. For a reconciliation of core earnings† to net income attributed to common shareholders through the drivers of earnings (DOE), refer to the "Reconciliation of Select Non-IFRS Financial Measures" section of this document.

4. ‌Analysis According to the Financial Statements

   The following table presents the Company's financial results by business segment according to the financial statements for the first quarter of 2025 and 2024. The analysis of these results is presented below and should be read in conjunction with the consolidated income statement presented in the last pages of this document and Note 16 "Segmented Information" in the Company's unaudited interim condensed consolidated financial statements.

   (in millions of dollars)	First quarter
   	Insurance, Canada		Wealth Management		US Operations		Investment		Corporate		Consolidation adjustments		Total
   	2025	2024	2025	2024	2025	2024	2025	2024	2025	2024	2025	2024	2025	2024
   Insurance service result
   Insurance revenue	1,049	968	307	262	470	365	-	-	-	-	-	-	1,826	1,595
   Insurance service expenses and net expenses from reinsurance contracts	(913)	(834)	(211) (180)		(421) (332)		-	-	-	-	-	-	(1,545) (1,346)
   	136	134	96	82	49	33	-	-	-	-	-	-	281	249
   Net investment result
   Net investment income	-	-	26	32	-	-	436 (580)		1 (2)		-	-	463 (550)
   Finance income (expenses) from insurance and reinsurance contracts and change in investment contracts and interest on deposits	-	-	- (1)		-	-	(357) 747		-	-	-	-	(357) 746
   	-	-	26	31	-	-	79	167	1 (2)		-	-	106	196
   Other revenues	52	44	390	328	53	39	9	8	2	1	(19) (16)		487	404
   Other expenses	(60)	(64)	(380) (320)		(78) (57)		(64) (53)		(70) (66)		19	16	(633) (544)
   Income before income taxes	128	114	132	121	24	15	24	122	(67) (67)		-	-	241	305
   Income tax (expense) recovery	(41)	(31)	(37) (33)		(5) (3)		20 (21)		17	17	-	-	(46) (71)
   Net income	87	83	95	88	19	12	44	101	(50) (50)		-	-	195	234
   Distribution on other equity instruments and dividends on preferred shares issued by a subsidiary	-	-	-	-	-	-	(9) (1)		-	-	-	-	(9) (1)
   Net income attributed to common shareholders	87	83	95	88	19	12	35	100	(50) (50)		-	-	186	233

   INSURANCE SERVICE RESULT

   INSURANCE, CANADA

   For the first quarter of 2025, the insurance service result in the Insurance, Canada segment totalled $136 million, representing an increase of $2 million compared to the same period in 2024. This result was driven by the segment's insurance revenue, partly offset by insurance service expenses and net expenses from reinsurance contracts.

   The segment's insurance revenue amounted to $1,049 million in the first quarter of 2025, up 8% from $968 million in the same quarter last year. The increase was primarily driven by business growth from Individual Insurance, iA Auto and Home, P&C insurance in Dealer Services, and employee plans in Group Insurance, which resulted in higher revenue recognized to cover expected incurred claims and other insurance service expenses, as well as higher recovery of insurance acquisition cash flows.

   The segment's insurance service expenses and net expenses from reinsurance contracts totalled $913 million in the first quarter of 2025 compared to $834 million in the same quarter last year, a 9% increase. This change was mostly due to the impact of higher incurred claims and higher amortization of insurance acquisition cash flows, in line with business growth, primarily in Individual Insurance, iA Auto and Home, and P&C Insurance in Dealer Services. These were partially offset by fewer losses on onerous contracts in Group Insurance: Employee Plans.

   WEALTH MANAGEMENT

   For the first quarter of 2025, the insurance service result in the Wealth Management segment totalled $96 million, representing an increase of $14 million or 17% compared to the same period in 2024. This result was driven by the segment's insurance revenue, partly offset by insurance service expenses and net expenses from reinsurance contracts.

   The segment's insurance revenue amounted to $307 million in the first quarter of 2025, up 17% from $262 million in the same quarter last year. This increase was mainly driven by higher sales of segregated funds in Individual Wealth Management, which resulted in higher revenue recognized to cover expected incurred claims and other insurance service expenses, a higher contractual service margin recognized for services provided during the period as well as higher recovery of insurance acquisition cash flows. The increase was also driven by steady growth in insured annuity contracts in Group Savings and Retirement, outpacing the yearly decrease due to mortality, which resulted in higher revenue recognized to cover expected incurred claims and other insurance service expenses.

   The segment's insurance service expenses and net expenses from reinsurance contracts totalled $211 million in the first quarter of 2025 compared to $180 million in the same quarter last year, a 17% increase. This change was mainly due to higher trailer fees from the increased sale of segregated funds and higher amortization of insurance acquisition cash flows in Individual Wealth Management, as well as higher benefits paid in Group Savings and Retirement, which grew proportionately to revenue recognized.

   US OPERATIONS

   For the first quarter of 2025, the insurance service result in the US Operations segment totalled $49 million, representing an increase of $16 million or 48% compared to the same period in 2024. This result was driven by the segment's insurance service revenue, partly offset by insurance service expenses and net expenses from reinsurance contracts.

   The segment's insurance revenue amounted to $470 million in the first quarter of 2025, up 29% from $365 million in the same quarter last year. The increase was primarily driven by the contributions from Individual Insurance as well as the acquisitions of Vericity and the two blocks of business from Prosperity Life Group. This resulted in higher revenue recognized to cover expected incurred claims and other insurance service expenses, higher recovery of insurance acquisition cash flows as well as a higher contractual service margin recognized for services provided during the period.

   The segment's insurance service expenses and net expenses from reinsurance contracts totalled $421 million in the first quarter of 2025 compared to $332 million in the same period of 2024, a 27% increase. This change was primarily a result of the contributions from Individual Insurance as well as the acquisitions of Vericity and the two blocks of business from Prosperity Life Group. This resulted in higher incurred claims and higher amortization of insurance acquisition cash flows. The change was also partly due to higher net expenses from reinsurance contracts from Vericity.

   NET INVESTMENT RESULT

   For the first quarter of 2025, the net investment result totalled $106 million compared to $196 million for the same period in 2024. This change was almost entirely driven by market-related impacts in the Investment segment and is explained by net investment income, offset by finance income (expenses) from insurance and reinsurance contracts and change in investment contracts and interest on deposits.

   Net investment income amounted to $463 million in the first quarter of 2025, a $1,013 million increase compared to the same period in 2024. The increase was mainly driven by the impact that decreasing interest rates in 2025 had on fair value of fixed income and derivative financial instruments, compared to rising rates in 2024.

   Finance income (expenses) from insurance and reinsurance contracts and change in investment contracts and interest on deposits correspond to an expense of $357 million in the first quarter of 2025, compared to income of $746 million in the same period of 2024. This $1,103 million change was mainly driven by the impact of decreasing interest rates in 2025, compared to rising rates in 2024, which are an important factor in determining the finance expenses of the insurance contract liabilities.

   OTHER REVENUES

   Other revenues include fees earned from the management of the Company's mutual fund assets and the Company's segregated fund assets relating to investment contracts, as well as commissions from intermediary activities, administration income and administrative services only income. For the first quarter of 2025, other revenues totalled $487 million compared to $404 million in the same quarter last year. The increase of $83 million mainly comes from the Wealth Management segment, with an increase of $62 million. This is due to higher commission from distribution affiliates and higher management fee revenues from Group Savings and Retirement, which is the result of increased assets under administration and assets under management, driven favourably by advisor recruitment and positive market performance in 2024. The increase is also explained by the revenues in the US Operations segment from the distribution operations of the Vericity acquisition.

   OTHER EXPENSES

   For the first quarter of 2025, other expenses totalled $633 million compared to $544 million in the same quarter last year. The variation of $89 million is mainly explained by increased commission expenses in the Wealth Management segment related to increased revenues. The change is also explained by the additions in the US Operations segment from the acquisition of Vericity.

   INCOME TAX (EXPENSE) RECOVERY

   For the first quarter of 2025, the Company recorded an income tax expense of $46 million compared to $71 million in the same quarter last year. The variation is in line with the amount calculated under the applicable statutory tax rate, combined with higher savings from tax-exempt investment income and higher income from activities in the United States, reduced by higher tax expenses from prior years' adjustments.

   NET INCOME ATTRIBUTED TO COMMON SHAREHOLDERS

   Net income attributed to common shareholders totalled $186 million for the first quarter of 2025, compared to $233 million for the same period in 2024. The change is primarily a result of:

   • sustained business growth across Insurance, Canada, Wealth Management and US Operations, which had a favourable impact on the insurance service result; and

   • the net impact of decreasing interest rates in 2025, compared to rising rates in 2024, on the net investment result.

   The breakdown of net income attributed to common shareholders by segment is presented and discussed in the "Analysis of Earnings by Business Segment" section.

   Quarterly results

   Below is a summary of the Company's quarterly results, taken from the financial statements for the last eight quarters.

   Selected Financial Data
   2025		2024				2023
   (In millions of dollars, unless otherwise indicated)	Q1	Q4	Q3	Q2	Q1	Q4	Q3	Q2
   Revenues
   Insurance revenue	1,826	1,822	1,741	1,644	1,595	1,547	1,458	1,376
   Net investment income	463	273	2,170	225	(550)	4,414	(2,573)	635
   Other revenues	487	471	437	432	404	386	387	388
   Total	2,776	2,566	4,348	2,301	1,449	6,347	(728)	2,399
   Income before income taxes	241	269	389	266	305	333	69	245
   Income taxes	(46)	(43)	(101)	(52)	(71)	(77)	(13)	(41)
   Net income	195	226	288	214	234	256	56	204
   Distribution on other equity instruments and dividends
   on preferred shares issued by a subsidiary	(9)	(6)	(5)	(8)	(1)	(8)	(1)	(8)
   Net income attributed to common shareholders	186	220	283	206	233	248	55	196
   Earnings per common share
   Basic	1.99	2.34	3.00	2.13	2.35	2.47	0.55	1.90
   Diluted	1.98	2.33	2.99	2.12	2.34	2.46	0.54	1.89

   The analysis below presents the main trends and factors that have caused variations in the results over the quarters.

   Quarterly insurance revenue has increased steadily over the last eight quarters due to the Company's organic growth, which has been particularly notable in the Individual Insurance and Wealth Management business units. The acquisition of Vericity and the two blocks of business from Prosperity Group in the US Operations segment have also contributed to this growth since their acquisition at the end of the second quarter 2024. Overall, the increase in insurance revenue reflects the Company's strength and performance year over year.

   Net investment income is mostly influenced by changes in the interest rate curve and corporate credit spreads. In 2023, lower inflation in Canada prompted expectations of a Bank of Canada rate cut. This led to decreased interest rates, boosting bond returns and equity market performance. In 2024, the Bank of Canada lowered rates, affecting both short-term and long-term rates. Although higher long-term rates impacted bond values, macroeconomic factors in Canada drove robust equity and bond returns, supported by reduced credit spreads and real estate recovery. The first quarter of 2025 saw a further decrease in interest rates, which led to higher returns on bonds.

   Other revenues were stable for the last three quarters of 2023 and have increased steadily since the first quarter of 2024. This growth is mainly attributed to higher commission from distribution affiliates and higher management fee revenues in the Wealth Management segment, as well as higher revenues from distribution operations in the US Operations segment resulting from the acquisition of Vericity.

   Net income attributed to common shareholders fluctuated from quarter to quarter primarily due to market-related impacts. For the first quarter of 2025, the variations were mainly attributable to unfavourable macroeconomic variations. For the third quarter of 2023, the variations were mainly attributable to unfavourable macroeconomic variations, including value adjustments to investment properties.

   RELATED PARTY TRANSACTIONS

   The Company eliminates transactions carried out with its subsidiaries and between the various subsidiaries of the Group on consolidation. It provides investment management services to its pension plans and concludes transactions with associates. These services and transactions are offered and concluded in the normal course of business and are subject to normal market conditions.

   ACCOUNTING POLICIES AND MAIN ACCOUNTING ESTIMATES

   The Company's first quarter unaudited interim condensed consolidated financial statements were prepared as outlined in Note 1 "General Information" of these financial statements.

   The preparation of financial statements requires management to exercise judgment and make estimates and assumptions that affect the reported amounts of assets and liabilities, net income and complementary information. Actual results could differ from management's best estimates. Management has exercised its judgment and made estimates and assumptions as outlined in Note 2 "Material Accounting Policy Information" in section b) "Important Estimates, Assumptions and Judgments" of the consolidated financial statements in the Company's 2024 Annual Report.

   More information on new accounting policies applied and future changes in accounting policies is presented in Note 2 "Changes in Accounting Policies" of the unaudited interim condensed consolidated financial statements for the first quarter of 2025.

5. ‌CSM Movement Analysis

   The contractual service margin, or CSM, is an accounting metric that gives an indication of future profits and that is factored as available capital in the calculation of the solvency ratio.1However, this metric is not comprehensive as it does not consider required capital, non-insurance business, PAA2insurance business or the risk adjustment metric, which is also an indication of future profit. Organic CSM movement is a component of organic capital generation, and represents the ongoing CSM value creation calculated excluding the impact of non-organic items that add volatility to the total CSM, such as market variations.

   The following table presents the evolution of the CSM for the first quarter of 2025.

   CSM Movement Analysis3
   (In millions of dollars, unless otherwise indicated)	First quarter
   	2025	2024	Variation
   CSM - Beginning of period	6,899	5,925	16%
   Organic CSM movement
   Impact of new insurance business	191	158
   Organic financial growth	92	75
   Insurance experience gains (losses)	44	(18)
   CSM recognized for services provided	(195)	(164)
   Sub-total - Organic CSM movement	132	51	159%
   Non-organic CSM movement
   Impact of changes in assumptions and management actions	(3) 2
   Impact of markets	(99)	168
   Currency impact	-	13
   Acquisition or disposition of a business	3	-
   Sub-total - Non-organic CSM movement	(99)	183
   Total - CSM movement	33	234
   CSM - End of period	6,932	6,159	13%
   CSM - Net insurance contract liabilities at end	6,509	5,863	11%
   CSM - Net reinsurance contract liabilities at end	423	296	43%
   CSM - End of period	6,932	6,159	13%

   At March 31, 2025, the CSM totalled more than $6.9 billion, an increase of $773 million or 13% over the last 12 months.

   Results for the first quarter of 2025

   During the first quarter, the CSM increased organically by $132 million and was driven by the following items:

   • The positive impact of new insurance business of $191 million, mainly driven by strong segregated fund sales;

   • Organic financial growth of $92 million; and

   • Net insurance experience gains of $44 million, mainly reflecting favourable policyholder behaviour experience in the segregated fund portfolio and favourable mortality experience consistent with the experience loss in earnings.

   Organic CSM growth is consistently moderated by CSM recognized for service provided in earnings, which amounted to

   $195 million, 19% higher than a year ago.

   During the first quarter, non-organic items led to a decrease in the CSM of $99 million, mostly due to the unfavourable impact of market performance of $99 million, which mainly affected the CSM for segregated funds.

   As a result of organic and non-organic items, the CSM increased by $33 million during the first quarter of 2025.

   1The CSM, excluding the CSM for segregated funds, counts as Tier 1 capital in the solvency ratio calculation.

   2PAA: Premium Allocation Approach.

   3Components of the CSM movement analysis constitute supplementary financial measures. Refer to the "Non-IFRS and Additional Financial Measures" section of this document for more information.

6. ‌Financial Position

   Solvency
   (In millions of dollars, unless otherwise indicated)	March 31, 2025	December 31, 2024	March 31, 2024
   Available capital
   Tier 1	4,628	4,742	5,027
   Tier 2	3,818	4,081	3,200
   Surplus allowance and eligible deposits	2,785	2,758	2,431
   Total	11,231	11,581	10,658
   Base solvency buffer	8,500	8,337	7,527
   Solvency ratio	132%	139%	142%

   The Company ended the first quarter of 2025 with a solvency ratio of 132%, 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 acquisition of Global Warranty, share buybacks (NCIB), IT investments and the redemption of subordinated debentures as outlined in the "Highlights" section of this document. 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.

   During the first quarter, the Company organically generated $125 million in additional capital. At March 31, 2025, the capital available for deployment was assessed at $1.4 billion. As outlined in the "Highlights" section of this document, the AMF's revised Capital Adequacy Requirements Guideline - Life and Health Insurance (CARLI) that took effect on January 1, 2025 had a favourable impact on the Company's capital available for deployment. This increase was partly offset by capital deployed during the quarter as mentioned above.

   Financial Leverage Ratio††
   	March 31, 2025	December 31, 2024	March 31, 2024
   Financial leverage ratio	14.8%	17.3%	14.3%

   The financial leverage ratio†† was 14.8% on March 31, 2025 compared to 17.3% at the end of the previous quarter. The favourable variation is mainly due to the $400 million redemption of subordinated debentures outlined in the "Highlights" section of this document and, to a lesser extent, the increase in the post-tax contractual service margin.1

   Book Value per Common Share and Market Capitalization
   	March 31, 2025	December 31, 2024	March 31, 2024
   Book value per common share2	$74.62	$73.44	$68.93
   Number of common shares outstanding	93,258,297	93,455,697	98,350,869
   Share price at close	$136.66	$133.32	$84.15
   Market capitalization (in million of dollars)	$12,745	$12,460	$8,276

   The book value per common share increased by 8% during the last 12 months and by 2% during the quarter to reach $74.62 at March 31, 2025. This result is mostly attributable to the increase in retained earnings, which was partly offset by the impact of the share buybacks (NCIB) and the dividend payment to common shareholders.

   The number of common shares outstanding decreased by 197,400 during the quarter. This decrease is mainly due to the Company's redemption and cancellation of common shares under the NCIB program, which was partly offset by the exercise of stock options under the stock option plan for senior managers.

   1Post-tax contractual service margin is a component of the financial leverage ratio calculation. For more information, see the "Non-IFRS and Additional Financial Measures" section in this document.

   2Book value per common share is calculated by dividing the common shareholders' equity, which represents the total equity less other equity instruments, by the number of common shares outstanding at the end of the period.

   During the first quarter, the Company repurchased and cancelled a total of 218,200 outstanding common shares for a total value of $29 million and cancelled 52,700 additional shares that had been repurchased but not cancelled as of December 31, 2024. Under the current NCIB 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 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.

   CHANGES IN FINANCIAL POSITION ACCORDING TO THE FINANCIAL STATEMENTS

   The following table presents the balances of assets, liabilities and equity in the general fund.

   Financial Position of General Fund
   (In millions of dollars)	March 31, 2025	December 31, 2024
   General fund assets	58,036	57,286
   General fund liabilities	50,474	49,819
   Total equity	7,562	7,467

   General fund assets and liabilities remained relatively stable as at March 31, 2025 compared to the previous year ended December 31, 2024.

   At March 31, 2025, general fund assets totalled $58.0 billion compared to $57.3 billion at December 31, 2024. The variation is mainly driven by amounts receivable arising from investment transactions that occurred in the normal course of business.

   At March 31, 2025, general fund liabilities totalled $50.5 billion compared to $49.8 billion at December 31, 2024. The redemption of subordinated debentures in February 2025 decreased the general fund liabilities by $400 million, the impact of which was offset by an increase in other liabilities due to amounts payable related to investment transactions in the normal course of business.

   Capital Structure
   (In millions of dollars)	March 31, 2025	December 31, 2024	March 31, 2024
   Equity
   Share capital and contributed surplus	1,542	1,540	1,601
   Other equity instruments and preferred shares issued by a subsidiary	600	600	375
   Retained earnings and accumulated other comprehensive income	5,420	5,327	5,182
   Total shareholders' equity	7,562	7,467	7,158
   Debentures	1,495	1,894	1,500
   Total capital structure	9,057	9,361	8,658

   The Company's capital structure is defined as the total of the shareholders' equity and debentures.

   Equity was $7.6 billion at March 31, 2025 compared to $7.5 billion at December 31, 2024. The three-month variation is primarily related to:

   • the contribution of net income to retained earnings, totalling $195 million for the first three months of 2025;

   • the impact of dividends on common shares of $84 million; and

   • the repurchase and cancellation of common shares for $29 million through the NCIB program.

   Debentures were $1.5 billion at March 31, 2025 compared to $1.9 billion at December 31, 2024. The three-month variation is due to the redemption of subordinated debentures as mentioned above.

   As a result of the items listed above, the Company's capital structure amounted to nearly $9.1 billion at March 31, 2025, a decrease of $304 million from December 31, 2024.

   LIQUIDITY

   At March 31, 2025, cash and short-term investments totalled $1,794 million compared to $1,566 million at December 31, 2024. The following table summarizes the source and use of the Company's funds for the first quarter of 2025 and 2024.

   Cash Flows	First quarter
   (In millions of dollars, unless otherwise indicated)	2025	2024
   Cash and short-term investments at beginning	1,566	1,379
   Cash flows from (used in):
   Operating activities	871	351
   Investing activities	(102)	(58)
   Financing activities	(542)	(218)
   Foreign currency gains (losses) on cash	1	8
   Increase (decrease) in cash and short-term investments	228	83
   Cash and short-term investments at end	1,794	1,462

   Cash flows from operating activities generally vary due to income before income taxes, sales and purchases of investments as well as receipts and disbursements on insurance and reinsurance contracts. Cash flows from investing activities change due to the acquisition of businesses and purchases of fixed and intangible assets. Cash flows from financing activities change due to transactions involving equity and debentures.

   Cash flows increased by $228 million for the first quarter of 2025 compared to an increase of $83 million for the same period in 2024. The higher increase in 2025 is mainly due to the cash flow from operating activities, partially offset by the cash flow used in financing activities, which fluctuated due to the redemption of $400 million of subordinated debentures in February 2025. The change in cash flows used in investing activities is due to the acquisition of Global Warranty in the first quarter of 2025.

7. ‌Investments

   The following table shows the main asset classes that make up the Company's investment portfolio.

   Investment Mix
   (In millions of dollars, unless otherwise indicated)	March 31, 2025	December 31, 2024	March 31, 2024
   Book value of investments	45,676	45,580	41,586
   Allocation of investments by asset class
   Bonds	70.5%	71.7%	71.0%
   Stocks	12.3%	11.3%	10.4%
   Loans (including mortgages)	7.5%	7.6%	8.6%
   Investment properties	3.3%	3.3%	3.8%
   Cash and short-term investments	3.9%	3.4%	3.5%
   Other	2.5%	2.7%	2.7%
   Total	100.0%	100.0%	100.0%

   The total value of the investment portfolio was nearly $46 billion at March 31, 2025, 10% higher than a year ago but only slightly higher than at the end of 2024. The slight variation in the first quarter is primarily attributed to growth, which was partly offset by the redemption of subordinated debentures and the acquisition of Global Warranty.

   Quality of Investments
   	March 31, 2025	December 31, 2024	March 31, 2024
   Bonds - Proportion rated BB or lower	0.7%	0.7%	0.6%
   Mortgages - Proportion of securitized and insured loans	63.4%	65.0%	66.8%
   Investment properties - Occupancy rate1	85.8%	85.5%	86.4%
   Car loans - Net impaired loans as a percentage of gross loans2	0.44%	0.49%	0.48%
   Car loans - Total allowance for credit losses (ACL) as a percentage of gross loans3	5.63%	5.61%	5.16%

   The indicators in the above table continue to demonstrate the high quality of the investment portfolio. For investment properties, the occupancy rate remained relatively stable during the quarter and compares favourably with the Canadian office market.4The quality of the auto loan portfolio continues to be very good, despite a slight increase during the last 12 months in the total allowance for credit losses (ACL) as a percentage of gross loans.

   Derivative Financial Instruments
   	March 31, 2025	December 31, 2024	March 31, 2024
   Total notional amount ($B)	49	48	44
   Company's credit risk
   AA - or higher	100%	100%	100%
   A + or lower	-	-	-
   Positive fair value ($M)	995	1,066	975
   Negative fair value ($M)	1,021	1,060	892

   1Occupancy rate on investment properties is calculated by dividing the total number of square feet rented by the total number of square feet in the Company's real estate portfolio. Land and real estate properties intended for redevelopment are excluded from the calculation.

   2Net impaired loans as a percentage of gross loans is a ratio of impaired loans net of allowance for credit losses expressed as a percentage of gross loans. It is an indicator of

   quality of the loan portfolio.

   3Total allowance for credit losses (ACL) as a percentage of gross loans is defined as the ratio of ACL expressed as a percentage of gross loans. Provides a measure of the expected credit experience of the loan portfolio.

   † This item is a non-IFRS financial measure; see the "Non-IFRS and Additional Financial Measures" section and the "Reconciliation of Select Non-IFRS Financial Measures" section in this document for relevant information about such measures and a reconciliation of non-IFRS financial measures to the most directly comparable IFRS measure.

   †† This item is a non-IFRS ratio; see the "Non-IFRS and Additional Financial Measures" section in this document for relevant information about such measures.

   4Source: CBRE.

   The Company uses derivative financial instruments in the normal course of managing the risks associated with fluctuations in interest rates, stock markets, currencies and the fair value of invested assets. These instruments are composed of various types of contracts, including interest rate swaps, market index and exchange rate contracts, forward agreements, futures contracts, and market index and currency options.

   Derivative financial instruments are used as part of the Company's hedging program designed to alleviate the sensitivity of segregated fund guarantees to interest rate and stock market fluctuations. They are also used to hedge the Company's foreign exchange and interest rate risks and as part of investment strategies to reduce the Company's risk profile.

   The positive fair value represents the amounts payable to the Company by the different counterparties. This amount fluctuates from one period to another according to changes in interest rates, equity markets and exchange rates. Conversely, negative fair value represents the amount payable by the Company to the different counterparties.

   For more information, refer to Note 5 and Note 7 of the Company's unaudited interim condensed consolidated financial statements.

8. ‌Declaration of Dividend

   The Board of Directors of iA Financial Group approved a quarterly dividend of $0.9000 per share on the Company's outstanding common shares, the same as that announced the previous quarter.

   Following is the amount and the dates of payment and closing of registers for the iA Financial Group common shares.

   Declaration of Dividend
   	Amount	Payment date	Closing date
   Common shares - iA Financial Corporation Inc.	$0.9000	June 16, 2025	May 23, 2025

   For the purposes of the Income Tax Act (Canada) and any corresponding provincial or territorial tax legislation, all dividends paid by iA Financial Group on its common shares are eligible dividends.

   REINVESTMENT OF DIVIDENDS

   † This item is a non-IFRS financial measure; see the "Non-IFRS and Additional Financial Measures" section and the "Reconciliation of Select Non-IFRS Financial Measures" section in this document for relevant information about such measures and a reconciliation of non-IFRS financial measures to the most directly comparable IFRS measure.

   †† This item is a non-IFRS ratio; see the "Non-IFRS and Additional Financial Measures" section in this document for relevant information about such measures.

   Registered shareholders wishing to enrol in the Company'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.caunder About iA, in the Investor Relations/Dividends section. Common shares issued under the Company's DRIP will be purchased on the secondary market and no discount will apply.

9. ‌Risk Management and Sensitivities - Update

The "Risk Management and Sensitivities - Update" section of this Management's Discussion and Analysis contains certain IFRS® Accounting Standards information regarding the nature and scope of the risks arising from financial instruments. This information, which appears in darker grey in this section, is disclosed in the unaudited interim condensed consolidated financial statements for the period ended March 31, 2025, given that the standards permit cross-references between the Notes to the Financial Statements and the Management's Discussion and Analysis. Because of the references made to the financial statements, the terminology used in this section is generally aligned with what is found in the financial statements.

As at March 31, 2025, the Company updated some portions of the Management's Discussion and Analysis for 2024, "Risk Management" section. Considering that the unaudited interim condensed consolidated financial statements do not contain all the information required in complete annual financial statements, they should be read in conjunction with the consolidated financial statements for the year ended December 31, 2024 as well as the Management's Discussion and Analysis for 2024. The Company's risk profile has not changed significantly with respect to strategic risk, credit risk, liquidity risk, model risk, operational risk, or legal, regulatory and reputational risk.

Sensitivities provided by the Company constitute forward-looking information and involve risks and uncertainties, and undue reliance should not be placed on them. Refer to the "Forward-Looking Statements" section of this document for more information.

Immediate Sensitivity
(as at March 31, 2025)		Immediate Impact
		Net income1 $M after tax	Equity: OCI only2 $M after tax	Equity: OCI2and net income $M after tax	Solvency ratio Percentage points	CSM $M before tax
Public equity3	Immediate +10% change in market values	100	25	125	(0.5%)	250
	Immediate -10% change in market values	(100)	(25)	(125)	0.5%	(275)
Private non-fixed income (NFI) assets	Immediate +10% change in market values of private equity, investment property and infrastructure	300	25	325	1.5%	-
	Immediate -10% change in market values of private equity, investment property and infrastructure	(300)	(25)	(325)	(1.5%)	-
Interest rates	Immediate parallel shift of +50 bps on all rates	(25)	25	-	(0.5%)	25
	Immediate parallel shift of -50 bps on all rates	-	(25)	(25)	0.5%	(25)
Corporate spreads	Immediate parallel shift of +50 bps	(25)	75	50	0.5%	-
	Immediate parallel shift of -50 bps	-	(75)	(75)	(0.5%)	-
Provincial government bond spreads	Immediate parallel shift of +50 bps	25	(50)	(25)	(0.5%)	75
	Immediate parallel shift of -50 bps	(25)	50	25	0.5%	(100)
Rounding		±25 ±25 ±25 ±0.5% ±25

1Represents the impact on net income (reported). Note that the non-core adjustment corresponds to the difference between the actual reported net investment result and management's expectations, which for equity and investment properties include long-term expected average annual returns of 8%-9% on aggregate.

2Impact of macroeconomic variations on equity (OCI) is related to the Company's pension plan.

3Excluding preferred shares.

Core Earnings† Sensitivities
(as at March 31, 2025)	Business segment	Variation	Impact on future quarter core earnings†,4 $M after tax	Description of shock
Public equity5	Investment	+5%	0.3	Immediate +5% change in market values
		-5%	(0.3)	Immediate -5% change in market values
	Wealth Management	+5%	4.0	Immediate +5% change in market values
		-5%	(4.4)	Immediate -5% change in market values
Private non-fixed income (NFI) assets6	Investment	+5%	3.2	Immediate +5% change in market values
		-5%	(3.2)	Immediate -5% change in market values
Interest rates	Investment	+10 bps	0.5	Immediate parallel shift of +10 bps on all rates
		-10 bps	(0.5)	Immediate parallel shift of -10 bps on all rates
	Wealth Management	+10 bps	0.4	Immediate parallel shift of +10 bps on all rates
		-10 bps	(0.4)	Immediate parallel shift of -10 bps on all rates
Credit and swap spreads	Investment	+10 bps	0.2	Immediate parallel shift of +10 bps
		-10 bps	(0.1)	Immediate parallel shift of -10 bps

Caution Regarding Immediate Sensitivities

Sensitivities are provided in this section for certain risks. The sensitivities are projected using internal models at the reporting date and reflect the Company's assets and liabilities at that date. These sensitivities measure the impact of changing one factor at a time and assume that all other factors remain unchanged. Sensitivities include the impact of rebalancing equity and interest rate hedges as expected with the Company's dynamic hedging program used for guarantees on segregated funds. They exclude any subsequent actions on the Company's investment portfolio.

For solvency ratio sensitivities, it is assumed that no scenario switch occurs when estimating the impact on the interest rate risk under CARLI7(CARLI interest rate risk is assessed under four different interest rate scenarios, and the scenario leading to the highest capital requirement is chosen as the worst scenario for each geographic region).

Actual results can differ significantly from these estimates for a variety of reasons, including the interaction among these factors when more than one change occurs: change in business mix, change in actuarial and investment assumptions, change in investment strategies, actual experience differing from assumptions, the effective tax rate, market factors, the fact that sensitivities represent simplified scenarios (e.g., parallel shift of interest rates versus non-parallel movements) and limitations of our internal models. Also, changes in factors that are less than or more than the changes tested may not be linear. For these reasons, the sensitivities should only be viewed as directional estimates of the underlying sensitivities for the respective factors based on the assumptions outlined below.

Immediate sensitivities refer to the instantaneous effects on asset and liability values, ignoring any effects on future revenues and expenses. They should be used with caution to estimate financial impacts from market variations for a quarter. Immediate sensitivities assume an immediate market variation followed by a normally expected market evolution for the rest of the quarter. In other words, immediate sensitivities could be roughly interpreted as the difference between an actual market variation for a quarter versus the expectation for that quarter. For example, for public equity markets where growth is normally expected, flat market values for a quarter would be equivalent to an immediate decline in market values.

Caution Regarding Core Earnings† Sensitivities

Sensitivities are provided in this section for certain risks. The sensitivities are projected using internal models at the reporting date and reflect the Company's assets and liabilities at that date. These sensitivities measure the impact of changing one factor at a time and assume that all other factors remain unchanged. Also, they exclude any subsequent actions on the Company's investment portfolio.

Actual results can differ significantly from these estimates for a variety of reasons, including the interaction among these factors when more than one change occurs: change in business mix, change in actuarial and investment assumptions, change in investment strategies, actual experience differing from assumptions, the effective tax rate, market factors, the fact that sensitivities represent simplified scenarios (e.g., parallel shift of interest rates versus non-parallel movements) and limitations of our internal models. Also, changes in factors that are less than or more than the changes tested may not be linear. For these reasons, the sensitivities should only be viewed as directional estimates of the underlying sensitivities for the factors based on the assumptions outlined in the Management's Discussion and Analysis for 2024, "Risk Management" section.

4Impacts on core earnings†for the next quarter.

5Excluding preferred shares.

6Private equity, investment property and infrastructure.

7Capital Adequacy Requirements Guideline - Life and Health Insurers.