iA Financial Corporation Inc.

Thank you for standing by. This is the conference operator. Welcome to the Industrial Alliance Financial Group first quarter 2025 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 one on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star, then zero. I would now like to turn the conference over to Caroline Drouin, Head of Investor Relations. Please go ahead.

Thank you. Good afternoon and welcome to IEA's earnings conference call for the first quarter of 2025. All of our Q1 documents, including press release, slides for this conference call, supplementary information package, and quarterly MD&A are posted on the investor relations section of our website at iea.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, and the archived webcast will be available for 90 days, and a transcript will be available on our website in the next week. I draw your attention to the forward-looking statements. 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 risk is provided in our 2024 MDNA available on CDAR and on our website with an update in our Q1 2025 MDNA released yesterday. And with that, I will now turn the call over to Denis Ricard, President and CEO.

Good afternoon, 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 our 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 iAuto and Home. Sean O'Brien, Chief Growth Officer of our U.S. operations. And Louis-Philippe Pouliot, in charge of Group Benefits and Retirement Solutions. Starting with slide 8 for an overview of our first quarter results. We had a strong quarter marked by continued momentum in our sales and earnings along with disciplined execution. I'm pleased to walk you through the highlights of this remarkable quarter. Core EPS increased by a robust 19% year-over-year, reaching $2.91. Core ROE stands at 16.1% on a trailing 12-month basis, progressing well towards our new target of 17% plus in 2027. Sales in both Canada and the U.S. continue to be strong this quarter, contributing to the 19% year-over-year growth in premiums and deposits, as well as a 15% increase in assets under management and administration. This marks the fourth consecutive quarter of double-digit growth in premium and deposits, as well as assets under management and administration. We maintain a robust capital position, with the solvency ratio at 132%, which is supported by the ongoing organic capital generation and disciplined capital management. Our book value per share reached $74.62, representing an 8% year-over-year increase. Excluding the impact of the NCIP, the increase over the last 12 months is close to 11%. Turning to slide 9 to look at Q1 Business Growth for Insurance Canada. In this segment, we are seeing strong sales momentum in all business units while strengthening our leadership position in our foundation businesses, including individual insurance, dealer services, and SEC funds. In individual insurance, sales increased by 11% year-over-year to reach $99 million. This result reflects the strength of all our distribution networks, the outstanding performance of our digital tools, and our comprehensive range of products. We maintain our leading position in the Canadian market for the number of policies issued. In group insurance, sales were driven both by increased product uptake among existing clients and by the addition of plan members, resulting in a 31% year-over-year increase. This growth contributed to premiums and deposits totaling $531 million, representing a 5% increase from the previous year. In dealer services, total sales of $163 million grew by 10%, supported by guaranteed asset protection and ancillary products. This solid result highlights our position as a top dealer services provider, offering a comprehensive range of products and leveraging our extensive distribution network. Finally, IA Auto and Home delivered good sales results, with direct written premiums reaching $129 million in the first quarter, marking a strong increase of 13% over the same period last year. The growth in this subsidiary was driven by a high number of policies issued and targeted repricing. Now, looking at slide 10 to comment on sales results for wealth management, which were, again, very solid, particularly for SIG funds. IE continues to rank first in Canada for both gross and net SEC fund sales, achieving record-breaking levels this quarter. Gross sales soared to over $1.9 billion, marking an impressive 52% increase compared to last year. Net sales amounted to nearly $1.2 billion. These outstanding results highlight the strength of our distribution networks and the quality and breadth of our product lineup. Growth sales of mutual funds increased by a strong 32% compared to the same period last year, reaching a total of $647 million in Q1. Net outflows amounted to $62 million. Sales of other individual savings products reached $467 million during the quarter, maintaining high levels despite the market environment that favored asset classes with higher return potential. Finally, sales in group savings and retirement total $841 million, reflecting an 8% decrease compared to the previous year. This is the net result of accumulation product sales remaining consistent with 2024 levels, while insured and released sales were lower than last year. Let's move on to slide 11, which covers our sales results in the U.S. In individual insurance, Sales of 68 million U.S. dollars were 62% higher than a year earlier, driven by good organic growth in our target markets and the addition of sales from the Verisite acquisition, which added scale and new digital capabilities. In dealer services, first quarter sales increased by 23% compared to the same period last year, reaching an impressive 306 million U.S. dollars. This performance underscores the effectiveness of our growth strategy and focus on execution. By expanding our distribution channels and prioritizing superior customer experiences, we are solidifying our position in the industry. The impressive sales results in both U.S. business units demonstrate the potential for expansion of our business model as we continue to allocate capital to grow and scale in the U.S. Moving to slide 12, where you see that our key financial results are well aligned with their respective targets. Core APS growth of 19% year-over-year compares favorably with our midterm annual average target of 10% plus. Core ROE of 16.1% is progressing well toward our target of 17% plus in 2027. This good profitability contributed to the generation of $125 million in organic capital in Q1, on track to meet our 2025 target of $650-plus million. Lastly, our dividend payout ratio is near the middle of the target range. Turning to slide 13 to discuss our capital deployment priorities and recent initiatives. As you may recall, The revised CARLI guideline, effective January 1, 2025, has positively impacted our financial flexibility and increased our ability to deploy capital, a top priority for executing our growth strategy. As of March 31, 2025, we had $1.4 billion in capital available for deployment, following another active quarter of strategic capital deployment initiatives. These initiatives included dividends, share buybacks, IT investments, and the recent acquisition of Global Warranty, which strengthens our presence in the Canadian used car warranty market. Now, before I turn the call to Eric to detail our first quarter financials, I'd like to offer my perspective on the uncertainty created by the fast-moving political and macroeconomic environment. I want to highlight the financial strength and stability of our organization. Throughout our history, we have successfully navigated various economic cycles, slowdowns, and recessions. Our business model is highly diversified, spanning products, markets, and geographies, which makes us less sensitive to economic fluctuations today than in the past. This resilience is due to our multiple revenue streams and best-in-class risk management expertise. We remain committed to focusing on improving what we can control, harnessing the entrepreneurial energy of our distribution networks, adjusting pricing as needed, driving efficiency internally, and prioritizing the support and service of our clients' needs. In February, we hosted an investor event where we unveiled new financial targets and outlined a clear strategy for achieving them. We emphasized that our goal to increase ROE and create long-term value for shareholders is grounded in our unique approach, the IEWI. A prime example of this approach is our distribution network, which serves as a key differentiator that sets us apart from competitors. In uncertain environments, customers tend to choose the provider they trust most. Our extensive distribution network, combined with the high-quality advice from our human advisors, is a true point of distinction that reinforces this trust. Our Q1 2025 results demonstrate that we haven't seen any attenuation of demand yet. While there may be some short-term noise along the way, we approach this new financial cycle confidently. And remember that in every challenge lies great opportunity. With that in mind, we will remain focused on growth by actively exploring acquisition opportunities and staying disciplined and vigilant to capitalize on potential new opportunities. With that, I will now hand it over to Eric, who will comment on the first quarter profitability and capital strength. Following Eric's comments, we will take questions.