iA Financial Corporation Inc.

Thank you for standing by. This is the conference operator. Welcome to the IA Financial Group second 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 a 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.

Good morning, everyone. Bonjour à tous. Welcome to our second quarter 2025 conference call. All of our Q2 documents, including press release, slides for this conference call, supplementary information package, and quarterly 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, and 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. Now, 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 Q2 2025 MDNA, which was released yesterday. I will now 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 IAEA. 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 IEO Twin Home. Sean O'Brien, Chief Growth Officer of our U.S. operations. And Louis-Philippe Pouliot in charge of our group benefits and retirement solutions. There's a lot to be excited about, both in terms of our financial performance this quarter and the execution of our growth strategy. As you saw, we just announced our intention to acquire RF Capital, an exciting and valuable addition to our wealth management platform. It's only been a week since the announcement, so while we're not providing new details today, we're more than happy to give you an early read on how it's been received. Stéphane has been meeting with advisors across the country, and during the question period, he can share a bit of the tone and energy he's observing on the ground if you have questions, obviously. Let's begin with slide eight for a summary of our second quarter results. We will not use the word exceptional, but this quarter makes a strong case for it. This is one of those quarters where the profitability numbers really do all the talking. We delivered a very strong quarter. with core EPS reaching $3.49, up 27% year over year. Our core ROE reached 17% on a trading 12-month basis, already at our 2027 target. These results reflect the quality of our earnings, significant insurance experience gains, and the consistency of our performance across all business segments. Sales momentum remains strong across all business segments with premiums and deposits up 4% year-over-year and assets under management and administration up 16%. This growth highlights the strength of our distribution networks, the relevance of our product offerings, and the trust we continue to build with our clients. Our capital position is robust with a solvency ratio of 130%. at the end of Q2, supported by strong organic capital generation and prudent risk management. Our book value per share has risen to $76.02, up 9% year-over-year, and excluding the impact of the NCIB, the increase over the last 12 months is 11%. Let's now turn to slide nine for Insurance Canada. We saw good growth across all business units, Individual insurance sales increased by 5% year-over-year, reaching $103 million. This growth highlights the strength of our distribution networks, the effectiveness of our digital tools, and diversity of our product offering. We maintained our leading position in the number of policies issued in Canada. In group insurance, premiums and deposits rose by 7%, fueled by premium adjustments over the past year. In dealer services, sales reached $225 million this quarter, marking a 16% increase over the same period last year. The strong performance was driven by sustained momentum in P&C sales and the contribution of global warranty. Lastly, IOTO and HOME delivered strong results with sales up 10% year-over-year to reach $206 million this This growth was supported by an increased number of policies and agile repricing. Moving to slide 10, where we highlight our wealth management results. IE continues to lead the Canadian market in SEC fund sales, both in gross and net sales. Gross sales were up 8% year-over-year, approaching $1.4 billion, while net sales reached $670 million. These results reflect the strength of our distribution networks and the competitiveness of our product lineup. Mutual fund gross sales declined slightly, but net outflows and other individual savings products were down 21%, reflecting investor preference for higher return asset classes. Finally, in group savings and retirement, total assets under management rose by 18% year-over-year, while total sales were down 4%, driven by the growth in accumulation product sales. Let's look at slide 11, where we continue to see strong momentum in our U.S. operations. Individual insurance sales increased by 59% year-over-year, reaching $78 million U.S., equivalent to $108 million Canadian dollars. So in Canadian dollars, this marks the first time our individual insurance sales in the U.S., have surpassed those in Canada. This impressive performance is driven by organic growth in our core markets and the successful integration of Varicity, which continues to meet our expectations. The added scale and digital capabilities from the acquisition are already making a significant contribution to our results and reinforcing our long-term growth ambitions. In dealer services, sales increased by 6% supported by our strong product offering and the effectiveness of our distribution channels. The strong performance across both U.S. business units highlights the value of our diversified business model and demonstrates our ability to scale effectively in the U.S. market. Finally, turning to slide 12, which clearly illustrates how our core financial metrics are tracking well toward our targets. Core EPS growth for the first six months of 2025 is 23% year-over-year. This impressive result exceeds our midterm annual growth target of 10% plus. Core ROE stands at 17%, which is already in line with the 2027 target. Eric will discuss this achievement in a moment. So far in 2025, we've generated $325 million in organic capital, keeping us well on track to meet our 2025 target of over $650 million. Lastly, our dividend payout ratio is well within our target range of 25 to 35%, and the 10% dividend increase announced yesterday is expected to support this ratio in the coming quarters. Having reviewed our financial targets, I would like to conclude by highlighting a key strategic initiative currently on the way to support these goals. Please turn to slide 13 as we discuss the recent announcement of our acquisition of RF Capital. We remain focused on strategic capital deployment, and our capital allocation priorities remain unchanged, investing in organic growth, pursuing discipline acquisition, and returning capital through share buybacks and dividends. Our active share buyback program, the dividend increase we announced yesterday, and the acquisition of RF capital announced last week, all aligned with our commitment to delivering long-term value to our shareholders. Our intent to acquire RF Capital marks an exciting milestone for IE. This strategic move significantly accelerates our growth in the high-net-worth segment and strengthens our national presence in wealth management. with over $40 billion in assets under administration. RF Capital is one of the largest independent wealth management firms in the country. Its entrepreneurial culture and advisor-centric model align perfectly with IE. The transaction, valued at $597 million, and fully funded with cash on hand, is expected to be neutral to core earnings in year one and accretive to core EPS by at least 15 cents in year two. We are also excited about the potential for meaningful synergies while maintaining RF Capital's operational independence and strong brand. This acquisition clearly demonstrates our disciplined growth strategy in action and represents a major step forward in creating long-term value for our shareholders. Heading into the second half of the year, we do so with solid momentum and a focused strategy to deliver on our commitments. I have consistently emphasized that the IEA way is the cornerstone of our performance, and once again, the results speak for themselves. It's a winning formula, and I will continue to highlight its importance in the future. With that, I will now hand it over to Eric, who will comment on the second quarter profitability and capital strength. Following Eric's comment, we will take questions. Eric.