iA Financial Corporation Inc.

Thank you for standing by. This is the conference operator. Welcome to the Industrial Alliance Financial Group fourth quarter 2024 earnings results conference call. As a reminder, all participants are in listen-only mode and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. To join the question queue, you may press star, then 1 on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star, then 0. I would now like to turn the conference over to Caroline Drouin, head of investor relations with IA Financial Group. Please go ahead.

Thank you, operator. Good morning, everyone, and welcome to our fourth quarter 2024 conference call. All of our Q4 documents, including press release, slides for this conference call, supplementary information package, and annual MD&A are posted in the investor relations section of our website at ia.ca. This conference call is open to the financial community, the media, and the public. I remind you that the question period is reserved for financial analysts. A recording of this call will be available for one week starting this evening. The archived webcast will be available for 90 days, and a transcript will be available on our website in the next week. Also, I draw your attention to the forward-looking statement information on slide two, as well as the non-IFRS and additional financial measures information on slide three. Also, please note that a detailed discussion of the company's risks is provided in our 2024 MD&A available on CDAR and on our website. So with that, I will turn the call over to Denis Ricard, President and CEO.

Good morning, everyone, and thank you for being with us on the call today. As usual, I will start by introducing everyone attending on behalf of IE. Joining me are Eric Jobin, Chief Financial Officer and Chief Actuary, Alain Bergeron, Chief Investment Officer, Stéphane Bourbonnet, responsible for wealth management operations, René Laflamme, in charge of individual insurance savings and retirement, Pierre Miron, Chief Growth Officer of our Canadian operations and responsible for Dealer Services Canada and iOttawa Home. Sean O'Brien, Chief Growth Officer of our U.S. operations. And finally, Louis-Philippe Pouliot, in charge of Group Benefits and Retirement Solutions. We're excited to be here this morning to discuss our strong performance in the fourth quarter. We had an impressive fourth quarter for profitability, for capital position and for growth. These results mark a year of consistent, strong performance and are a testament to the soundness of our growth strategy. Starting with slide eight for an overview of our fourth quarter results. Record profitability was achieved in the fourth quarter with core EPS of $3.04 representing a solid 30% increase year over year. Also, core ROE for Q4 stands at 16.9% on a quarterly annualized basis. The strong sales momentum that we saw during the first three quarters of 2024 carried over into the fourth quarter in both Canada and in the U.S., leading to an impressive 39% year-over-year increase in premiums and deposits and an 18% increase in assets under management and administration. As for our capital position, it remains robust with a solvency ratio of 139%, well in excess of our operating target. This financial strength is supported by ongoing organic capital generation of $150 million in Q4. Our book value per share reached $73.44 as of December 31st. This represents a 10% year-over-year increase. The increase in book value per share is 13% if we exclude the impact of share buybacks. Now going to slide nine to look at the Q4 business growth for Insurance Canada. This segment has consistently demonstrated robust performance with all business units delivering solid sales results once again this quarter. In individual insurance, we maintain our leading position in the number of policies sold in Canada with strong sales of $102 million in Q4. The growth was driven by the performance of our unique distribution networks, our best-in-class digital tools, and our comprehensive product portfolio. In group insurance, premiums and deposits increased by 8% year-over-year, totaling $524 million, driven by strong sales, including record sales in special markets, but also by keeping clients through high retention rates. In dealer services, total sales amounted to $176 million in the fourth quarter, representing a 10% year-over-year increase. This performance was primarily driven by sales of excellent warranties and ancillary products, highlighting our diversified distribution model and national presence across Canada. Finally, IOTO and HOME achieved remarkable sales with direct written premiums totaling $134 million in the fourth quarter. This significant 17% year-over-year increase shows our success in generating new sales in a context of rising premiums. Turning to slide 10, to comment on sales results of wealth management. The wealth management segment maintains a strong momentum, and this is translating into strong sales in the fourth quarter. IE continues to lead the market in both growth and net SEC fund sales, Gross sales of SEC funds achieved a quarterly record high of nearly $1.6 billion in the fourth quarter, marking a significant increase of 87% year-over-year. Net inflows amounted to nearly $1 billion, demonstrating the strength of our distribution networks and our growing position as a market leader. Mutual fund growth sales for the quarter totaled $597 million, up 52% year-over-year. We saw a substantial improvement in net sales with outflows reduced to $33 million during Q4. Sales of insured annuities and other savings products reached $434 million during the quarter. This is a positive result in an environment where investors are more optimistic about riskier asset classes. Finally, sales in group savings and retirement exceed $1.8 billion. This is about three times the result for the same quarter last year. This impressive performance was driven by a major insured annuity sale in excess of $.9 billion and a strong 39% year-over-year increase in sales accumulation products. Returning to slide... Sorry. Turning to slide 11, outlining our sales results in the U.S. In 2024, we have allocated capital to grow and scale in the U.S. life sector. In individual insurance, sales remained strong, totaling $68 million U.S. The 55% year-over-year increase reflects a consistent overall performance, reinforced by the addition of sales from Veracity. In dealer services, fourth quarter sales reached $274 million U.S., representing a 21% increase compared to the same period last year. This outcome is noteworthy as sales traditionally experience a dip during the fourth quarter due to seasonality. This performance highlights the quality of our products and services, particularly in a more favorable context where dealers are integrating more F&I products into vehicle sales. The strong sales results we are seeing in our US business units demonstrate the value of our unique, diversified business model and growth potential in these markets. Turning to slide 12, we share some of the key highlights and progress for the year. In light of our great results, it is evident that 2024 was a standout year in all aspects. Profitability soared to record levels with core earnings exceeding $1 billion and an expanding ROE. In 2024, our core EPS increased by 20% compared to the previous year, while our EPS grew by 31% during the same period. This performance was driven by fundamentals such as a 22% growth in core insurance service results and 15% growth in core non-insurance activities. Our business growth momentum accelerated in 2024, ultimately generating a 22% increase in premiums and deposits and an 18% increase in assets. Our business units contributed to these outstanding results with strong and sustained sales. Our capital position remains strong throughout the year, supported by a continuous high level of organic capital generation. In 2024, we deployed significant capital investing in our organic growth and our digital transformation, while successfully completing three acquisitions and repurchasing over 600 million in shares. On top of this, we maintain financial flexibility and paid a dividend that is 13% higher than what it was in 2023. These initiatives demonstrate IE's ability to create and return value to its shareholders. Finally, our book value grew by 10% in 2024, and we closed the year with 12.5 billion market cap, today being at 13 billion. The rise in our market cap represents an important milestone for IE. Our 2024 performance highlights our strong foundation, the soundness of our growth strategy, our prudent financial approach, and dedicated efforts of our employees and distributors. We're moving into 2025 with confidence and momentum, and we are set up well for continued growth. Let's move to slide 13 to review our performance against the financial targets set at the beginning of 2024. I'm very proud to announce today that we have successfully met all our objectives for each of the five metrics outlined in our guidance. Our core EPS has seen a 20% increase and core ORE has reached 15.9% along with other remarkable results that meet or exceed targets. We invite you to join our investor event scheduled for next Monday, either in person or virtually. During this event, we will introduce our new market guidance. Our executive management team is fully engaged and will be presenting on the key objectives of our Canadian businesses and an in-depth review of our U.S. operations. I will now hand it over to Eric, who will comment further on the fourth quarter profitability and capital strength. Following Eric's comments, we will take questions. Eric.