Overview

* IA Financial ( IAFNF ) Q2 core EPS rises 27% YoY, beating analyst expectations, per LSEG data

* EPS for Q2 increases 62% YoY, reflecting strong profitability

* Company announces 10% dividend increase

Outlook

* IA Financial ( IAFNF ) expects RF Capital acquisition to be neutral to core earnings in first year

* Upon deal completion, company projects RF Capital deal to add over C$40 bln in assets under administration

* Company anticipates core EPS accretion of C$0.15 from RF Capital deal in second year

Result Drivers

* EXPERIENCE GAINS - Significant experience gains across business units drove strong profitability, per CFO Éric Jobin

* SALES MOMENTUM - Strong sales in Canada and U.S. contributed to 16% growth in assets under management and administration

* CAPITAL GENERATION - Record quarterly organic capital generation of C$200 mln strengthened capital position

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat C$3.49 C$3.06

Adjusted (6

EPS Analysts

)

Q2 EPS C$3.43

Q2 Net C$321

Income mln

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the life & health insurance peer group is "buy"

* Wall Street's median 12-month price target for iA Financial Corporation Inc ( IAFNF ) is C$144.50, about 6.3% above its August 1 closing price of C$135.34

* The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)