iA Financial Group Reports Fourth Quarter Results and Announces a 7% Increase in Its Common Dividend

Robust capital position, continued strong business growth and good profitability

The results presented below are for iA Financial Corporation Inc. ("iA Financial Corporation" or the "Company"), the holding company that owns 100% of the common shares of Industrial Alliance Insurance and Financial Services Inc. ("iA Insurance"). The results for iA Insurance are presented in a separate section on page 7 of this document.

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 December 31, 2023, which is hereby incorporated by reference, and is available for review at sedarplus.ca or on iA Financial Group's website at ia.ca.

FOURTH QUARTER HIGHLIGHTS – iA Financial Corporation

• 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^† at December 31, 2023
• Book value per common share reaching $66.90 at December 31, 2023, up 8% over 12 months (excluding share buyback impact)

QUEBEC CITY, Feb. 20, 2024 /CNW/ - For the fourth quarter ended December 31, 2023, iA Financial Corporation (TSX: IAG) recorded core diluted earnings per common share (EPS)^† of $2.34, compared to $2.40 in the fourth quarter of 2022.¹ Core return on common shareholders' equity (ROE)^† for the trailing twelve months was 14.4%, aligned with the Company's medium-term target of 15%+. On a reported basis, which includes the impact of volatile items (primarily short-term macroeconomic variations and the impact of assumption changes and management actions), the result was higher than core earnings, with quarterly net income attributed to common shareholders of $248 million, EPS of $2.46 and ROE^† for the trailing twelve months of 11.6%. The solvency ratio^† of 145% at December 31, 2023 is well above the Company's operating target of 120%.

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

"In view of our growth-oriented capital deployment strategy, we are particularly proud to have achieved our annual organic capital generation target, reflecting sustained generation throughout the year and demonstrating the value created by our operations," added 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 December 31
	2023	2022^1	Variation	2023	2022^1	Variation
Net income attributed to shareholders (in millions)	$256	$192	33 %	$789	$334	136 %
Less: dividends on preferred shares issued by a subsidiary (in millions)	($8)	($11)		($20)	($25)
Net income attributed to common shareholders (in millions)	$248	$181	37 %	$769	$309	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)	$2.46	$1.71	44 %	$7.48	$2.89	159 %
Core earnings^†	236	254	(7 %)	956	955	—
Core earnings per common share (diluted)^†	$2.34	$2.40	(3 %)	$9.31	$8.93	4 %

Other Financial Highlights	December 31, 2023	Sept. 30, 2023	December 31, 2022
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 share^2	$66.90	$65.25	$63.00
Assets under management and administration^† (in billions)	$218.9	$205.0	$197.4

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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 December 31, 2023.

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 December 31, 2023 for more information and an explanation of the adjustments applied in the Company's core earnings^† calculation.

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 $2.34 in the fourth quarter compares to $2.40 (or $2.18 excluding the previously mentioned unusual gain) during the same quarter of 2022.^3,4 Core return on common shareholders' equity (ROE)^† for 2023 was 14.4%, which is aligned with the Company's medium‑term target of 15%+. Core earnings is a non-IFRS measure that represents management's view of the Company's ongoing capacity to generate earnings.

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 $2.46 and ROE for 2023 was 11.6%.

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 December 31
	2023	2022^3	Variation	2023	2022^3	Variation
Net income to common shareholders	248	181	37 %	769	309	149 %
Earnings per common share (EPS) (diluted)	$2.46	$1.71	44 %	$7.48	$2.89	159 %
Core earnings^4	236	254	(7 %)	956	955	—
Core EPS^4 (diluted)	$2.34	$2.40	(3 %)	$9.31	$8.93	4 %

 

Return on common shareholders' equity (ROE)^†,	December 31, 2023	September 30, 2023	December 31, 2022
Reported ROE (trailing twelve months)	11.6 %	10.6 %	4.7 %
Core ROE^† (trailing twelve months)	14.4 %	14.8 %	14.4 %

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^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 $12 million difference between the net income to common shareholders of $248 million and core earnings of $236 million. These adjustments are divided into the following six categories:

1. 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
2. The year-end assumption review and management actions which totalled a charge of $56 million (see below for more details).
3. The impact of acquisition-related intangible assets of $17 million.
4. $4 million for the costs related to the Vericity acquisition and the charge for the Surex minority shareholders' sell option.
5. The impact of non-core pension expense of $2 million.
6. $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 December 31
	2023	2022^6	Variation	2023	2022^6	Variation
Net income to common shareholders	248	181	37 %	769	309	149 %
Core earnings adjustments (post tax)
Market-related impacts^7	(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 earnings^7	236	254	(7 %)	956	955	—

Core earnings by business segment

The fourth quarter core earnings result of $236 million is described in the following paragraphs by business segment.

Core earnings by business segment
(In millions of dollars, unless otherwise indicated)	Fourth quarter			Year-to-date at December 31
	2023	2022^6	Variation	2023	2022^6	Variation
Insurance, Canada	78	110	(29 %)	334	354	(6 %)
Wealth Management	91	70	30 %	314	260	21 %
US Operations	26	27	(4 %)	101	140	(28 %)
Investment^7	95	88	8 %	402	343	17 %
Corporate	(54)	(41)	32 %	(195)	(142)	37 %
Total^7	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, Canada – This business segment includes all Canadian insurance activities offering a wide range of life, health, auto and home insurance coverage, as well as vehicle warranties, to individuals and groups. Fourth quarter core earnings for this business segment were $78 million compared to the 2022 fourth quarter restated result of $110 million, which included $22 million (post-tax) of mostly unusual gains due to adjustments related to the restatement of 2022 results under the IFRS 17 and IFRS 9 accounting standards. For the fourth quarter of 2023, the expected insurance earnings recorded were 6% higher than a year ago, supported by the contractual service margin (CSM) recognized for services provided. A -$26 million impact of new insurance business in the Employee Plans business unit was recorded. This impact stems from the renewal period of long-term business for some large groups, which are expected to benefit business growth and future profitability. As for core insurance experience, it was globally as expected as minor variations versus expectations, such as favourable disability experience and higher auto claim severity at iA Auto and Home, offset each other. Also, as mortality experience in the last six months of 2023 was in line with expectations, the higher mortality claims recorded in the first six months of the year now appear to have been a momentary event.

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 U.S. activities offering individuals a range of life insurance and vehicle warranty products. Fourth quarter core earnings for this business segment were $26 million, which compares to $27 million for the same period in 2022.⁸ Results in the Individual Insurance divisions were good, as reflected in the core insurance service result, which is 15% higher than last year's result.⁸ This performance is the outcome of good business growth in past quarters and favourable mortality experience. The result for non-insurance activities was lower, mostly due to lower sales in the Dealer Services division, a consequence of reduced affordability for clients resulting from higher financing costs and high vehicle prices.

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 $95 million for the fourth quarter were 8% higher than the result of $88 million a year earlier.⁹ This increase is supported by the core net investment result, which was 18% higher than a year ago as a result of the favourable impacts of the investment portfolio optimization, the bond portfolio credit experience (more credit rating upgrades than downgrades) and higher interest rates at September 30, 2023 (despite the yield curve still having an unfavourable shape). Recall that interest rate impacts on core net investment results for a given quarter are solely dependent on the yield curve at the beginning of the quarter. The fourth quarter result also includes an increase in the allowance for credit losses for the car loans portfolio.

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 $54 million during the fourth quarter, which compares to $41 million for the same period a year ago. These expenses include, among other things, investments for the digital transformation and the enhanced employee experience to support talent retention, more extensive M&A prospecting activities, digital data and security projects and regulatory compliance projects.

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 $75 million pre-tax on fourth quarter net income (or $56 million after taxes) and a positive impact of $61 million pre-tax on future profit from the combined impacts on the CSM and the risk adjustment (RA). The result of the process was positive for the morbidity and policyholder behaviour assumptions and slightly negative for the mortality assumptions, while the impact of management actions, expenses and model refinements was unfavourable. More details on the year-end assumption review are provided in the 2023 Management's Discussion and Analysis.

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 $148 million in the fourth quarter, the organic financial growth of $63 million and an insurance experience gain of $18 million, partially offset by an increase in the CSM recognized in profit for services provided. The experience gain is mainly due to favourable mortality and policyholder behaviour experience. The net favourable non-organic CSM movement of $72 million during the fourth quarter was mainly due to the positive impact of macroeconomic variations, partly offset by the unfavourable impact of the year-end assumption review and management actions mentioned above and the impact of currency variations. As a result, the total CSM increased by $144 million during the quarter to stand at $5,925 million at December 31, 2023, an increase of 6% over the last twelve months.

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 December 31, 2023. They supplement the information presented above by providing additional indicators for assessing financial performance.

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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 $4.1 billion in the fourth quarter and, for the full year 2023, increased by 8% over the previous year for a total of over $16.6 billion. Total assets under management and administration^† ended the year on a high note at $218.9 billion, achieving a solid 11% increase in 2023.

In the Insurance, Canada segment, the Company had a strong year in terms of business growth in all business units. More specifically, in the fourth quarter, the Company continued to lead the Canadian market in Individual Insurance for number of policies sold,¹² and both Dealer Services and iA Auto and Home posted strong sales^† growth. In Individual Wealth Management, while the environment for fund sales remained challenging, the Company performed well, ranking first in both year-to-date gross and net sales^† of segregated funds, according to the latest industry data,¹³ and recording very strong sales of insured annuities and other savings products. In the US Operations segment, the Individual Insurance division delivered another strong quarter, resulting in a record year in terms of sales,^† while in the Dealer Services division, sales continued to be unfavourably impacted by reduced affordability for customers.

INSURANCE, CANADA

• 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 in Canada, 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^† of US$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.

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^12	According to the Canadian data published by LIMRA for the first nine months of the year.
^13	According to Investor Economics, November 2023.
^†	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 $218.9 billion, up 11% during the year and up 7% during the quarter. This performance was explained by the impact of favourable equity market conditions and the rise in general fund assets stemming from the increase in bond values and significant growth in sales of insured annuities and other savings products, which reached $2.7 billion in 2023.

NET PREMIUMS, PREMIUM EQUIVALENTS AND DEPOSITS

Net premiums, premium equivalents and deposits^† totalled nearly $4.1 billion in the fourth quarter and more than $16.6 billion for the full year 2023, representing an increase of 2% and 8%, respectively, over the same period a year earlier. Almost all business units contributed to these performances, in particular Individual Wealth Management.

FINANCIAL POSITION

At December 31, 2023, the solvency ratio^† was 145%, similar to the end of the previous quarter, and compares to 126%¹⁴ a year earlier. This result is well above the Company's operating target of 120%. Variations during the quarter include the positive contribution of organic capital generation, the favourable impact of macroeconomic variations and adjustments to the investment portfolio. These items were offset by the impact of $171 million in share buybacks (NCIB) and the impact of year-end assumption changes and management actions. On a pro-forma basis at December 31, 2023, the solvency ratio is 142% considering the acquisition of Vericity, a U.S. life insurance carrier and digital agency, that is anticipated to close in the first half of 2024. The Company's financial leverage ratio at December 31, 2023 was 14.6%,¹⁵ a slight improvement from 14.7% at September 30, 2023.

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 $600 million for the year, achieving the Company's organic capital generation target of $600+ million in 2023. At December 31, 2023, the capital available for deployment is assessed at $1.6 billion, which is a strong result considering the high level of share buybacks (NCIB) during the quarter.

Book value – The book value per common share¹⁶ was $66.90 at December 31, 2023, up 6% over twelve months and up 3% from the previous quarter. Excluding the impact of $461 million in share buybacks (NCIB) for the year, the book value per common share increased by 8% in 2023.

Normal Course Issuer Bid – In the fourth quarter of 2023, under the NCIB program, the Company redeemed and cancelled 1,987,048 outstanding common shares for a total value of $171 million. As a result, a total of 5,394,180 outstanding common shares were redeemed and cancelled in 2023 for a total value of $461 million. Under the current NCIB regime, the Company can redeem up to 5,046,835 common shares, representing approximately 5% of the outstanding common shares, between November 14, 2023 and November 13, 2024.

Dividend – The Company paid a quarterly dividend of $0.7650 to common shareholders in the fourth quarter of 2023. The Board of Directors approved a quarterly dividend of $0.8200 per share for the first quarter of 2024, an increase of 7% or $0.0550 from the previous paid dividend, on the outstanding common shares of iA Financial Corporation. This dividend is payable on March 15, 2024 to the shareholders of record at March 1, 2024.

Dividend Reinvestment and Share Purchase Plan – Registered shareholders wishing to enrol in iA Financial Corporation's Dividend Reinvestment and Share Purchase Plan (DRIP) so as to be eligible to reinvest the next dividend payable on March 15, 2024 must ensure that the duly completed form is delivered to Computershare no later than 4:00 p.m. on February 23, 2024. Enrolment information is provided on iA Financial Group's website at http://ia.ca/investorrelations, under the Dividends section. Common shares issued under iA Financial Corporation's DRIP will be purchased on the secondary market and no discount will be applicable.

Appointment – On November 9, 2023, iA Financial Group announced the appointment of Martin Gagnon to the Boards of Directors of iA Financial Corporation Inc. and Industrial Alliance Insurance and Financial Services Inc., effective January 17, 2024. Mr. Gagnon has over 25 years of experience in banking, asset management and brokerage firms.

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

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^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, iA Financial 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. iA Financial Group stood out among over 6,500 entries from 45 countries.
• The Globe and Mail's Board Games – In 2023, iA Financial Group ranked 7th out of 219 companies in The Globe 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, iA Financial Group ranked 48th among Canada'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 the J.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, iA Financial Group announced the appointment of Alka Gautam to the Board of Directors of iA Financial Corporation Inc., effective January 17, 2024. Ms. Gautam has more than 20 years of experience in the reinsurance and insurance industry.

OUTLOOK

Medium-term guidance for iA Financial Corporation

• 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 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. The Company's outlook serves to provide shareholders, market analysts, investors, and other stakeholders with a basis for adjusting their expectations with regard to the Company's performance throughout the year and may not be appropriate for other purposes. Additional information about risk factors and assumptions applied may be found in the "Forward-looking Statements" section of this document.

FOURTH QUARTER HIGHLIGHTS – iA Insurance

Profitability – In the fourth quarter of 2023, iA Insurance recorded net income attributed to its sole common shareholder, iA Financial Corporation, of $272 million compared to $201 million a year earlier.¹⁷ An analysis of results according to the financial statements and additional analysis on an annual basis are presented in the Industrial Alliance Insurance and Financial Services Inc. Management's Discussion and Analysis as at December 31, 2023.

Financial position – The solvency ratio of iA Insurance was 139% at December 31, 2023, compared with 140% at the end of the previous quarter and 118%¹⁸ a year earlier. The one percentage point decrease in the fourth quarter is mainly explained by the dividend payments to the Company's sole common shareholder, which were partly offset by the positive contribution of organic capital generation.

Dividend – In the fourth quarter of 2023, iA Insurance paid a dividend of $200 million in favour of its sole common shareholder, iA Financial Corporation. Late in the fourth quarter of 2023, the Board of Directors of iA Insurance also approved an additional dividend of $125 million to be paid to iA Financial Corporation. Of this amount, $109 million was paid in the fourth quarter of 2023 and the remaining balance will be settled over the course of 2024. Accordingly, iA Insurance paid a total of $309 million in dividends to iA Financial Corporation in the fourth quarter of 2023.

In the first quarter of 2024, iA Insurance approved the declaration of a dividend of $150 million to be paid to its sole common shareholder, iA Financial Corporation.

iA Insurance
Earnings Highlights	Fourth quarter			Year-to-date at December 31
(In millions of dollars, unless otherwise indicated)	2023	2022^19	Variation	2023	2022^19	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)	December 31, 2023	September 30, 2023	December 31, 2022
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 November 9, 2023, iA Financial Group announced the appointment of Martin Gagnon to the Board of Directors of Industrial Alliance Insurance and Financial Services Inc., effective January 17, 2024. Mr. Gagnon has over 25 years of experience in banking, asset management and brokerage firms.

Acquisition of U.S. company Vericity, Inc. – On October 3, 2023, iA Financial Group announced that it had entered into a definitive merger agreement to acquire U.S. life insurance company Vericity, Inc. for a purchase price of US$170 million. Vericity comprises two entities servicing the middle-market life insurance space, with synergies in between and combining artificial intelligence and rich data analytics to deliver innovative proprietary technology: Fidelity Life, an insurance carrier, and eFinancial, a direct-to-consumer digital agency. Vericity employs more than 400 employees. The transaction is expected to close in the first half of 2024 and is expected to become slightly accretive to core EPS in year 2 and to EPS in year 3.

iA Private Wealth Dual Registration – On October 10, 2023, iA Financial Group's investment dealer affiliate, iA Private Wealth, was approved for dual registration by the Canadian Investment Regulatory Organization (CIRO) and is now registered in both the categories of investment dealer and mutual fund dealer. iA Private Wealth is the first major independent firm to receive this approval, which provides greater flexibility and more attractive options for advisors and advisory teams, and ultimately clients, across iA Wealth dealers. This important development establishes a broader basis for the registration of representatives, which will help to enhance opportunities for recruitment, growth, migration and succession planning.

Partnership with Mercedes-Benz – iA Financial Group concluded a partnership with Mercedes-Benz Financial Services Canada to be the new administrator of their First Class Protection Plan Program. This new partnership continues to demonstrate the Company's commitment to the OEM branded Finance and Insurance sector. The new program will be seamlessly integrated into Mercedes-Benz dealerships across Canada, as of January 8, 2024, to include ancillary products.

__________
^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 December 31, 2022 calculated under the IFRS 4 accounting standard and the capital standard applicable in 2022.
^†	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

iA Financial Corporation and iA Insurance report their financial results and statements in accordance with International Financial Reporting Standards ("IFRS"). They also publish certain financial measures or ratios that are not based on IFRS ("non-IFRS"). A financial measure is considered a non-IFRS measure for Canadian securities law purposes if it is presented other than in accordance with the generally accepted accounting principles ("GAAP") used for the Company's audited financial statements. The Company uses non-IFRS measures when evaluating its results and measuring its performance. The Company believes that non-IFRS measures provide additional information to better understand its financial results and assess its growth and earnings potential, and that they facilitate comparison of the quarterly and full year results of the Company's ongoing operations. Since non-IFRS measures do not have standardized definitions and meaning, they may differ from the non-IFRS financial measures used by other institutions and should not be viewed as an alternative to measures of financial performance determined in accordance with IFRS. The Company strongly encourages investors to review its financial statements and other publicly filed reports in their entirety and not to rely on any single financial measure. These non-IFRS measures are often accompanied by and reconciled with IFRS financial measures. For certain non-IFRS measures, there are no directly comparable amounts under IFRS. This document presents non-IFRS measures used by the Company when evaluating its results and measuring its performance.

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 December 31, 2023, which is hereby incorporated by reference and is available for review at sedarplus.ca or on iA Financial Group's website at ia.ca.

Forward-Looking Statements

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

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

• Material factors and risks that could cause actual results to differ materially from expectations include, but are not limited to: 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 Ukraine, the Hamas-Israel conflict and tension in China are also causing instability in global markets. These events, among others, could lead to reduced consumer and investor confidence, significant financial volatility and more limited growth opportunities, as well as testing the Company's ability to anticipate and mitigate headwinds in its markets and could negatively affect the Company's financial outlook, results and operations.

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 December 31, 2023 and elsewhere in iA Financial Group's filings with the Canadian Securities Administrators, which are available for review at sedarplus.ca.

The forward-looking statements in this document reflect iA Financial Group's expectations as of the date of this document. iA Financial Group does not undertake to update or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this document or to reflect the occurrence of unanticipated events, except as required by law.

Documents Related to the Financial Results

For a detailed discussion of iA Financial Corporation's and iA Insurance's fourth quarter results, investors are invited to consult the Management's Discussion and Analysis for the quarter ended December 31, 2023, the related financial statements and accompanying notes and the Financial Information Package for each company, all of which are available on the iA Financial Group website at ia.ca under About iA, in the Investor Relations/Financial Reports section and on SEDAR+ at sedarplus.ca.

Conference Call

Management will hold a conference call to present iA Financial Group's fourth quarter results on Wednesday, February 21, 2024 at 11:00 a.m. (ET). To listen to the conference call, choose one of the options below:

• Live Webcast: Click here (https://app.webinar.net/K70GwKZBDoR) or go to the iA Financial Group website, at ia.ca/about-us, in the Investor Relations section under the Events and Presentations tab.

• By phone: Click here (https://emportal.ink/3RO0OJq) and enter your phone number to receive a phone call that will instantly connect you to the conference call. You can also dial 416-764-8651 or 1-888-390‑0620 (toll-free in North America) fifteen minutes before the conference call is scheduled to take place and an operator will connect you.

About iA Financial Group

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

ia.ca

iA Financial Group is a business name and trademark of iA Financial Corporation Inc. and Industrial Alliance Insurance and Financial Services Inc.

Consolidated Income Statements
	Quarters ended December 31		Twelve months ended December 31
(in millions of Canadian dollars, unless otherwise indicated)	2023	2022¹	2023	2022¹
Insurance service result
Insurance revenue	$ 1,547	$ 1,383	$ 5,740	$ 5,138
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 instruments	(8)	(11)	(20)	(25)
Net income attributed to common shareholders	$ 248	$ 181	$ 769	$ 309
Earnings per common share (in dollars)
Basic^1	$ 2.47	$ 1.72	$ 7.51	$ 2.90
Diluted^1	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
December 31, 2022 and for the twelve months ended December 31, 2022 reflect the adoption of IFRS 17 and
IFRS 9 on January 1, 2022, and consequently, the amounts are different from those previously published.

Consolidated Statements of Financial Position
	As at December 31	As at December 31	As at January 1
(in millions of Canadian dollars)	2023	2022¹	2022¹
Assets
Investments
Cash and short-term investments	$     1,379	$ 1,358	$ 1,546
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
Goodwill	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	$ 84,428	$ 93,621
Liabilities
Insurance contract liabilities	$    33,630	$ 29,685	$ 37,072
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	$ 77,301	$ 86,414
Equity
Share capital and contributed surplus	$     1,620	$ 1,692	$ 1,723
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	$ 84,428	$ 93,62

¹ The Consolidated Statements of Financial Position as at December 31, 2022 and as at January 1, 2022 reflect the adoption of IFRS 17 and IFRS 9 on January 1, 2022, and consequently, the amounts are different from those previously published.

Segmented Results
	Quarter ended December 31, 2023
(in millions of dollars)	Insurance, Canada	Wealth Management	US Operations	Investment	Corporate	Consolidation adjustments	Total
Insurance service result
Insurance revenue	$ 927	$    263	$ 357	$ —	$ —	$    —	$    1,547
Insurance service expenses and net expenses from reinsurance contracts	(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 reinsurance contracts and change in investment contracts and interest on deposits	—	(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 distribution on other equity instruments	—	—	—	(8)	—	—	(8)
Net income attributed to common shareholders	$ 43	$    85	$      (7)	$ 181	$     (54)	$    —	$     248

	Quarter ended December 31, 2022^1
(in millions of dollars)	Insurance, Canada	Wealth  Management	US Operations	Investment	Corporate	Consolidation adjustments	Total
Insurance service result
Insurance revenue	$ 836	$    219	$ 328	$ —	$ —	$    —	$    1,383
Insurance service expenses and net expenses from reinsurance contracts	(784)	(152)	(296)	—	—	—	(1,232)
	52	67	32	—	—	—	151
Net investment result
Net investment income	—	26	—	249	—	—	275
Finance income (expenses) from insurance and reinsurance contracts and change in investment contracts and interest on deposits	—	(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 distribution on other equity instruments	—	—	—	(11)	—	—	(11)
Net income attributed to common shareholders	$ 23	$    67	$ 13	$ 120	$     (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 January 1, 2022.

	Twelve months ended December 31, 2023
(in millions of dollars)	Insurance, Canada	Wealth Management	US Operations	Investment	Corporate	Consolidation adjustments	Total
Insurance service result
Insurance revenue	$    3,507	$    939	$    1,294	$ —	$ —	$    —	$    5,740
Insurance service expenses and net expenses from reinsurance contracts	(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 reinsurance contracts and change in investment contracts and interest on deposits	—	(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 distribution on other equity instruments	—	—	—	(20)	—	—	(20)
Net income attributed to common shareholders	$     274	$    288	$ 47	$     358	$     (198)	$    —	$     769

	Twelve months ended December 31, 2022^1
(in millions of dollars)	Insurance, Canada	Wealth  Management	US Operations	Investment	Corporate	Consolidation adjustments	Total
Insurance service result
Insurance revenue	$    3,134	$    814	$    1,190	$ —	$ —	$    —	$    5,138
Insurance service expenses and net expenses from reinsurance contracts	(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 reinsurance contracts and change in investment contracts and interest on deposits	—	(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 distribution on other equity instruments	—	—	—	(25)	—	—	(25)
Net income attributed to common shareholders	$     238	$    239	$ 99	$       (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 January 1, 2022.

SOURCE iA Financial Group

Investor Relations, Marie-Annick Bonneau, Office: 418-684-5000, ext. 104287, Email: [email protected]; Media Relations, Pierre Picard, Office: 418-684-5000, ext. 101660, Email: [email protected]