iA Financial Group Increases Core ROE†† Target1 to 18.5%+ in 2028

QUEBEC CITY--(BUSINESS WIRE)-- iA Financial Group (the “Company”) (TSX: IAG) announces today the increase of its core ROE target to 18.5%+ in 2028, as well as the expected favourable impacts of the proposed Capital Adequacy Requirements Guideline – Life and Health Insurance (CARLI) for 2027 by the Autorité des marchés financiers (AMF) (the “proposed 2027 CARLI Guideline”). Strong organic momentum is projected to push core ROE to 18.5%, while capital deployment potential, further increased by the proposed 2027 CARLI Guideline, is expected to provide additional upside, supporting the 18.5%+ target.

“Our new core ROE target of 18.5%+ reflects the strength of our organic growth momentum and increased capital deployment optionality,” said Denis Ricard, President and Chief Executive Officer. ‘’We remain focused on executing the same successful strategy and maintaining the same disciplined approach and risk profile, while deploying capital where we see the greatest potential to create sustainable shareholder value.”

“As regulators proactively promote consistency and alignment, the proposed 2027 CARLI Guideline would address structural constraints embedded in the current framework and would improve alignment between capital requirements and underlying risks,” added Éric Jobin, Executive Vice-President, Chief Financial Officer and Chief Actuary. “The proposed 2027 CARLI Guideline combined with the strong capital generation of our businesses, provides increased capital deployment optionality and additional flexibility for balance sheet optimization.’’

The proposed 2027 CARLI Guideline would, if adopted as proposed:

Increase the capital available for deploymentby $1.7 billion, to $2.6 billion
Increase the solvency ratio by 3 percentage points, to 134%
Increase the core ratio by 48 percentage points, to 118%
Add flexibility for balance sheet optimization, within same risk appetite

On November 12, 2026, the AMF published for consultation the draft revised 2027 CARLI guideline. The consultation period is expected to end on December 11, 2026. Following this consultation, the AMF expects to publish the final guideline in the first quarter of 2027 and is expected to become effective on January 1, 2027. The estimated impacts presented above assume that the revised 2027 CARLI Guideline is adopted as published for consultation.


Footnotes:

	Within the meaning of applicable securities laws, such target constitutes “financial outlook and “forward-looking information”. See the “Forward-Looking Statements” sections of this news release.
	Consolidated net income attributed to common shareholders divided by the average common shareholders’ equity for the period. Return on common shareholders’ equity is a supplementary financial measure. Refer to the “Non-IFRS and Additional Financial Measures” section in this document and in the Q3/2026 Management’s Discussion and Analysis for more information.
	As at September 30, 2026, on a pro forma basis considering the expected impacts of the proposed 2027 CARLI Guideline, assuming adoption substantially in the form published for consultation by the AMF. Actual impacts will depend on the final guideline and the Company's ongoing financial position and results, and may differ materially.
	Capital available for deployment represents a supplementary financial measure. Refer to the “Non-IFRS and Additional Financial Measures” section in this document and in the Q3/2026 Management’s Discussion and Analysis for more information.
	As at September 30, 2026, on a pro forma basis considering the expected impacts of the proposed 2027 Guideline. The solvency ratio (Total CARLI Ratio) and core ratio (Core CARLI Ratio) are calculated in accordance with the Capital Adequacy Requirements Guideline – Life and Health Insurance (CARLI) mandated by the Autorité des marchés financiers du Québec (AMF). This financial measure is exempt from certain requirements of Regulation 52-112 respecting Non-GAAP and Other Financial Measures Disclosure according to AMF Blanket Order No. 2021-PDG-0065.

Conference Call

The Company will hold a conference call Monday, November 16, 2026, from 8:00 a.m. to 9:00 a.m. (ET). During this session, management will outline the path to the new core ROE target and provide information on the proposed 2027 CARLI Guideline. The presentation will be followed by a question-and-answer period reserved for financial analysts. Investors are invited to consult the presentation material, which will be made available prior to the conference call on the iA Financial Group website at ia.ca, under About iA/Investor Relations/Events and Presentations.

The investor session will be accessible via a live webcast or by phone:

Live Webcast: Click here https://www.gowebcasting.com/15220 or visit the iA Financial Group website at ia.ca and go to About iA/Investor Relations/Events and Presentations.
By phone: Click here https://dpregister.com/sreg/10213358/10539e57408 to register and receive a dial-in number to connect instantly to the conference call. You can also dial 1-833-752-4884 (toll-free in North America) or 1-647-849-3374 (International) fifteen minutes before the conference call is scheduled to take place and an operator will connect you.

The conference call will be recorded and the replay will be available on the iA Financial Group website at ia.ca, under About iA/Investor Relations/Events and Presentations.

Forward Looking Statements

This document may contain statements that are predictive or otherwise forward-looking 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 “financial targets”, “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 future operating results, strategies, and financial and operational outlooks and statements regarding the anticipated impacts of the proposed 2027 Capital Adequacy Requirements Guideline – Life and Health Insurance, if adopted as proposed. These statements are not historical facts; they represent only expectations, estimates and projections regarding future events and are subject to change.

Within the meaning of applicable securities laws, our new core ROE target constitutes “financial outlook” and “forward-looking information”. The purpose of this financial guidance is to provide a description of management’s expectations regarding iA Financial Group’s medium-term financial performance and may not be appropriate for other purposes. Actual results could differ materially as a result of numerous factors, including the risk factors referenced herein. Additional information relating to market guidance provided herein and other related financial and operating targets are described in the presentation materials for the conference call to be held on Monday, November 16, 2026 mentioned above.

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: general business and economic conditions; level of competition and consolidation and ability to adapt products and services to market or customer changes; information technology, data protection, governance and management, including privacy breach, and information security risks, including cyber risks; level of inflation; performance and volatility of equity markets; interest rate fluctuations; hedging strategy risks; accuracy of information received from counterparties and the ability of counterparties to meet their obligations; unexpected changes in pricing or reserving assumptions; iA Financial Group liquidity risk, including the availability of funding to meet financial liabilities at expected maturity dates; mismanagement or dependence on third-party relationships in a supply chain context; ability to attract, develop and retain key employees; risk of inappropriate design, implementation or use of complex models, including artificial intelligence; fraud risk; changes in laws and regulations, including tax laws; contractual and legal disputes; actions by regulatory authorities that may affect the business or operations of iA Financial Group or its business partners; changes made to capital and liquidity guidelines (or variations or withdrawals in respect of anticipated changes), including the possibility that the proposed 2027 CARLI Guideline is not adopted, or is adopted in a form or on a timeline that differs from the version published for consultation; risks associated with the regional or global political and social environment; geopolitical and trade uncertainty; climate-related risks including extreme weather events or longer-term climate changes and the transition to a low-carbon economy; iA Financial Group’s ability to meet stakeholder expectations on environmental, social and governance matters; the occurrence of natural or man-made disasters, international conflicts, pandemic diseases and acts of terrorism; and downgrades in the financial strength or credit ratings of iA Financial Group or its subsidiaries.
Material factors and assumptions used in the preparation of financial outlooks and other forward-looking information 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; the adoption by the Autorité des marchés financiers of the proposed 2027 CARLI Guideline substantially in the form published for consultation on November 12, 2026, with an effective date of January 1, 2027; no other material changes in the level of the Company’s regulatory capital requirements; the maintenance of the Company’s current capital management approach and targets; availability of options for deployment of excess capital, including the completion of intended share repurchases; 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; change in the number of shares outstanding consistent with intended share repurchases and other expected changes; 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 2025 that could influence the Company’s performance or results.

Ongoing geopolitical tensions, including war in Ukraine and the Middle East, and escalating trade tensions between the U.S. and Canada, including tariffs, continue to disrupt supply chains and raise costs, contributing to economic uncertainty. Global equity markets could face increased volatility due to ongoing tariff risks, evolving interest rate expectations and general uncertainty. These factors may reduce consumer and investor confidence, increase financial instability and constrain growth prospects.

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 2025, the “Management of Financial Risks Associated with Financial Instruments and Insurance Contracts” note to the audited consolidated financial statements for the year ended December 31, 2025, 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 and outlooks 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. Forward-looking statements are presented in this document for the purpose of assisting investors and others in understanding certain key elements of the Company’s expected financial results, as well as the Company’s objectives, strategic priorities and business outlook, and in obtaining a better understanding of the Company’s anticipated operating environment. Readers are cautioned that such information may not be appropriate for other purposes.

The pro forma information set forth in this document should not be considered to be what the actual financial position or results of operations of the Company would have necessarily been had the proposed 2027 CARLI Guideline been in effect as at or for the periods stated. Readers should not place undue reliance on pro forma information. See the “Non-IFRS and Additional Financial Measures” section. Actual impacts will depend on the final guideline and the Company's ongoing financial position and results, and may differ materially.

Non-IFRS and Additional Financial Measures

iA Financial Corporation reports its financial results and statements in accordance with IFRS® Accounting Standards. The Company also publishes certain financial measures or ratios that are not presented in accordance with IFRS. The Company uses non-IFRS and other financial measures when evaluating its results and measuring its performance. The Company believes that such 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 such non-IFRS and other financial measures do not have standardized definitions and meaning, they may differ from similar measures used by other institutions and should not be viewed as an alternative to measures of financial performance, financial position or cash flow 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.

Non-IFRS ratios used in this document include core return on common shareholders’ equity (core ROE).

Supplementary financial measures used in this document include return on common shareholders’ equity (ROE); and capital available for deployment.

For relevant information about non-IFRS and other financial measures used in this document, including a reconciliation of non-IFRS financial measures to the most directly comparable IFRS measure, see the “Non-IFRS and Additional Financial Measures” section and the “Reconciliation of Select Non-IFRS Financial Measures” section in the Management’s Discussion and Analysis (MD&A) for the period ended September 30, 2026, which are hereby incorporated by reference and are available for review on SEDAR+ at sedarplus.ca or on iA Financial Group’s website at ia.ca. For a reconciliation of net income attributed to common shareholders to core earnings on a consolidated basis, see the “Reconciliation of Net Income Attributed to Common Shareholders and Core Earnings” section in the MD&A for the period ending September 30, 2026, which is hereby incorporated by reference.

This document also makes reference to certain pro forma financial information, including pro forma supplementary financial measures giving effect to the proposed 2027 CARLI Guideline, including solvency ratio (Core Ratio / Total Core (CARLI) Ratio) and capital available for deployment. These measures do not have standardized definitions and meaning; they may differ from similar measures used by other institutions and should not be viewed as an alternative to measures determined in accordance with IFRS. Accordingly, an unavoidable level of risk remains regarding the accuracy and completeness of such information, including with respect to facts or circumstances that would affect the completeness or accuracy of such information and which are unknown to the Company. See “Forward-Looking Statements”.

Reconciliation of Net Income Attributed to Common Shareholders and Core Earnings

The following table presents net income attributed to common shareholders and the adjustments that account for the difference between net income attributed to common shareholders and core earnings.

Net Income Attributed to Common Shareholders and Core Earnings Reconciliation – Consolidated

(As at December 31, in millions of dollars, unless otherwise indicated)	2025
Net income attributed to common shareholders	1,053
Core earnings adjustments (post tax)
Market-related impacts	(15)
Interest rates and credit spreads	7
Equity	(107)
Investment properties	72
CIF2	13
Currency	—
Assumption changes and management actions	21
Charges or proceeds related to acquisition, disposition or restructuring of a business, including acquisition,
integration and restructuring costs	17
Amortization of acquisition-related finite life intangible assets	84
Non-core pension expense	21
Specified items	29
Total	157
Core earnings†	1,210
Return on common shareholders’ equity (ROE)	14.9%
Core ROE††	17.1%

________________________
1	Market-related impacts that differ from management’s expectations.
2	Impact of the tax-exempt investment income (above or below expected long-term tax impacts) from the Company’s multinational insurer status.
3	Impact of assumption changes and management actions mainly attributable to the unfavourable net impact of the year-end actuarial review and to a charge from a management action related to the pension plan.

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 symbol IAG (common shares).

To learn more about iA Financial Group, you can sign up for our newsletter on our website at ia.ca.

iA Financial Group is a business name and trademark of iA Financial Corporation Inc.

This item is a non-IFRS financial measure; see the "Non-IFRS and Additional Financial Measures" section and the "Reconciliation of Select Non-IFRS Financial Measures" section in this document and in the Q3/2026 Management's Discussion and Analysis for relevant information about such measures and a reconciliation to the most directly comparable IFRS measure.

This item is a non-IFRS ratio; see the “Non-IFRS and Additional Financial Measures” section in this document and in the Q3/2026 Management’s Discussion and Analysis.