Q2 2026 iA Financial Corp Inc Earnings Call

August 5, 2026

Speaker #1: Thank you for standing by. This is the conference operator. Welcome to the iA Financial Group second quarter 2026 earnings results conference call. As a reminder, all participants are in a listen-only mode, and the conference is being recorded.

Operator 3: Thank you for standing by. This is the conference operator. Welcome to the iA Financial Group Q2 2026 earnings results conference call. As a reminder, all participants are in a 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 with iA Financial Group. Please go ahead.

Operator: Thank you for standing by. This is the conference operator. Welcome to the iA Financial Group Q2 2026 Earnings Results Conference Call. As a reminder, all participants are in a 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 with iA Financial Group. Please go ahead.

Speaker #1: 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.

Speaker #1: 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.

Speaker #1: Please go ahead.

Speaker #2: Thank you, and good morning, everyone. Bonjour à tous. Welcome to iA's second quarter 2026 conference call. This conference call is open to the financial community, the media, and the public.

Caroline Drouin: Thank you, and good morning, everyone. Bonjour a tous. Welcome to iA's Q2 2026 conference call. 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. Before we start, I draw your attention to the forward-looking statements information on slide two. Forward-looking statements made today are subject to risks and uncertainties that could cause actual results to differ materially. These statements are based on certain material factors and assumptions. I also draw your attention to the non-IFRS and additional financial measures on slide three. Today's commentary will also include adjusted financial measures, which should be considered as a supplement to IFRS measures. For further details, including those factors and assumptions, please refer to our press release and MD&A. I will start by introducing everyone attending on behalf of iA.

Caroline Drouin: Thank you, and good morning, everyone. [Foreign language]. Welcome to iA's Q2 2026 Conference Call. 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. Before we start, I draw your attention to the forward-looking statements information on slide two. Forward-looking statements made today are subject to risks and uncertainties that could cause actual results to differ materially. These statements are based on certain material factors and assumptions. I also draw your attention to the non-IFRS and additional financial measures on slide three. Today's commentary will also include adjusted financial measures, which should be considered as a supplement to IFRS measures. For further details, including those factors and assumptions, please refer to our press release and MD&A. I will start by introducing everyone attending on behalf of iA.

Speaker #2: I remind you that the question period is reserved for financial analysts. And before we start, I draw your attention to the forward-looking statements information on Slide 2.

Speaker #2: Forward-looking statements made today are subject to risks, and uncertainties that could cause actual results to defer materially. These statements are based on certain material factors and assumptions.

Speaker #2: I also draw your attention to the non-IFRS and additional financial measures on slide 3. Today's commentary will also include adjusted financial measures, which should be considered as a supplement to IFRS measures.

Speaker #2: For further details, including those factors and assumptions, please refer to our press release and MD&A. I will start by introducing everyone attending on behalf of iA.

Speaker #2: Denis Ricard, President and CEO, Eric Jobin, Chief Financial Officer and Chief Actuary, Alain Bergeron, Chief Investment Officer, Denis Bertiom, Chief Growth Officer for our Canadian operations, and responsible for iA Auto & Home.

Caroline Drouin: Denis Ricard, President and Chief Executive Officer. Éric Jobin, Chief Financial Officer and Chief Actuary. Alain Bergeron, Chief Investment Officer. Denis Berthiaume, Chief Growth Officer for our Canadian Operations and responsible for iA Auto and Home. Stephan Bourbonnais, responsible for our Wealth Management operations. Renée Laflamme, responsible for Individual Insurance, Savings and Retirement. Sean O'Brien, Chief Growth Officer for our US Operations and responsible for Dealer Services. Louis-Philippe Pouliot, in charge of Group Benefits and Retirement Solutions. With that, I will now turn the call over to Denis Ricard.

Speaker #2: Stephan Bourbonnais, responsible for our Wealth Management Operations; René Laflamme, responsible for Individual Insurance, Savings, and Retirement; Sean O'Brien, Chief Growth Officer for our U.S.

Speaker #2: Operations, and responsible for Dealer Services, Louis-Philippe Pouliot, in charge of Group Benefits and Retirement Solutions. And with that, I will now turn the call over to Denis Ricard.

Speaker #3: Good morning, and thank you for joining us today. We delivered another strong quarter, demonstrating once again the value of our diversified business model. Our ability to generate consistent profitability is supported by multiple sources of earnings, and solid growth for the overall organization.

Denis Ricard: Good morning, thank you for joining us today. We delivered another strong quarter, demonstrating once again the value of our diversified business model. Our ability to generate consistent profitability is supported by multiple sources of earnings and solid growth for the overall organization. At the same time, Wealth Management continues to strengthen its contribution to our results and is becoming an increasingly important driver of growth. Across the organization, our focus remains on disciplined execution and profitable growth. We continue to make deliberate decisions that prioritize long-term value creation, business quality, and sustainable returns. These priorities are clearly reflected in our second quarter results. Turning to slide eight. The quarter was strong across several dimensions: earnings, ROE, business growth, capital, and shareholder value. Importantly, the growth was not concentrated in one area.

Speaker #3: At the same time, wealth management continues to strengthen its contribution to our results and is becoming an increasingly important driver of growth. Across the organization, our focus remains on discipline execution and profitable growth.

Speaker #3: We continue to make deliberate decisions that prioritize long-term value creation, business quality, and sustainable returns. These priorities are clearly reflected in our second quarter results.

Speaker #3: Turning to slide 8, the quarter was strong across several dimensions: earnings, ROE, business growth, capital, and shareholder value. Importantly, the growth was not concentrated in one area.

Speaker #3: It reflected the strong activity in our distribution platforms, continued wealth management momentum, and discipline execution across the organization. Let me highlight a few key metrics.

Denis Ricard: It reflected the strong activity in our distribution platforms, continued Wealth Management momentum, and disciplined execution across the organization. Let me highlight a few key metrics. Core EPS was CAD 3.68, up 5% year over year. EPS was CAD 4.28, up 25% year over year. Our trailing 12 months Core ROE reached 17.5%, in line with our 2026 target of 17% or more. Business growth was also strong. Net premiums, premium equivalents, and deposits were CAD 6.3 billion, up 25% year over year. Assets under management and administration grew 37% over the last 12 months. This growth reflects solid organic growth from fund inflows, favorable markets, and the addition of RF Capital. Our financial position remained a clear strength. The solvency ratio stood at 137% at quarter end. We had CAD 1.1 billion of capital available for deployment. We also generated CAD 188 million of organic capital during the quarter.

Speaker #3: Core EPS was $3.68, up 5% year over year, and EPS was $4.28, up 25% year over year. Our trailing 12-month core ROE reached 17.5%, in line with our 2026 target of 17% or more.

Speaker #3: Business growth was also strong. Net premiums, premium equivalents, and deposits were $6.3 billion, up 25% year over year. Assets under management and administration grew 37% over the last 12 months.

Speaker #3: This growth reflects solid organic growth from funding flows, favorable markets, and the addition of RF Capital. Our financial position remained a clear strength. The solvency ratio stood at 137% at quarter-end, and we had $1.1 billion of capital available for deployment.

Speaker #3: We also generated 188 million of organic capital during the quarter. At the same time, we continued to return capital to shareholders during the quarter, in addition to our regular dividend.

Denis Ricard: At the same time, we continued to return capital to shareholders during the quarter. In addition to our regular dividend, we deployed CAD 347 million through our share buyback program. Finally, book value per common share reached CAD 80.55, up 6% over the last 12 months. Overall, these results reinforce our confidence in the trajectory of our business. We are growing, delivering strong profitability, and maintaining the balance sheet strength needed to create long-term value. Turning now to slide nine. Our Insurance, Canada segment delivered a good quarter, supported by the strength of our distribution platforms, the diversity of our businesses, and our continued focus on profitable growth. In Individual Insurance, sales totaled CAD 102 million, a result comparable to last year's strong performance. We remain very pleased with the momentum across the business and the strength of our market position.

Speaker #3: We deployed 347 million dollars to our share buyback program. Finally, book value per common share reached $80.55, up 6% over the last 12 months.

Speaker #3: Overall, these results reinforce our confidence in this trajectory of our business. We are growing delivering strong profitability and maintaining the balance sheet strength needed to create long-term value.

Speaker #3: Turning now to slide 9, our insurance, Canada, segment delivered a good quarter, supported by the strength of our distribution platforms, the diversity of our businesses, and our continued focus on profitable growth.

Speaker #3: In individual insurance, sales total 102 million dollars, a result comparable to last year's strong performance. We remained very pleased with the momentum across the business and the strength of our market position.

Speaker #3: We continue to benefit from our growing distribution network, the effectiveness of our digital tools, and our comprehensive product offering. We also maintain our leading position in Canada for the number of policies issued.

Denis Ricard: We continue to benefit from our growing distribution network, the effectiveness of our digital tools, and our comprehensive product offering. We also maintain our leading position in Canada for the number of policies issued. The stability of our results reflects our disciplined approach to underwriting and business selection, which supports sustainable, profitable growth over time. In Group Insurance, premium and deposits remain close to the strong level recorded a year ago. Employee plans implemented sales reached CAD 30 million, significantly above the CAD 8 million recorded in Q2 2025. In special markets, sales were affected by lower volumes of international student medical insurance following federal government measures limiting the number of international students entering Canada. We have also taken deliberate actions to optimize the business mix and focus on opportunities that meet our return objectives.

Speaker #3: The stability of our results reflects our discipline approach to underwriting and business selection, which supports sustainable profitable growth over time. In group insurance, premium and deposits remain close to the strong level recorded a year ago.

Speaker #3: Employee plans implemented sales reached 30 million dollars, significantly above the 8 million dollars recorded in the second quarter of 2025. In special markets, sales were affected by lower volumes of international student medical insurance following federal government measures limiting the number of international students entering Canada.

Speaker #3: We have also taken deliberate actions to optimize the business mix and focus on opportunities that meet our return objectives. This disciplined approach strengthens the quality of future earnings, and we expect the impact of lower international student volumes on sales to remain visible in the second half of the year.

Denis Ricard: This disciplined approach strengthens the quality of future earnings. We expect the impact of lower international student volumes on sales to remain visible in H2 of the year. Dealer Services sales remain good at CAD 218 million, close to the results for the same period last year, benefiting from our extensive distribution network and comprehensive suite of Dealer Services products. Finally, at iA Auto and Home, direct written premium increased 5% over a year to CAD 216 million. This growth was driven by higher policy volumes and the favorable impact of price adjustments implemented over the last 12 months. Overall, our Insurance, Canada businesses continue to demonstrate the benefits of scale, the distribution strength, and disciplined execution while maintaining a strong focus on profitable growth. Turning to slide 10, Wealth Management delivered another solid quarter and continues to be an increasingly important contributor to our growth and earnings profile.

Speaker #3: Dealer Services sales remain good at the $288 million, close to the results for the same period last year, benefiting from our extensive distribution network and comprehensive suite of Dealer Services products.

Speaker #3: Finally, at iA Auto & Home, direct written premium increased 5% over a year, to $216 million, this growth was driven by higher policy volumes and the favorable impact of price adjustments implemented over the last 12 months.

Speaker #3: Overall, our insurance, Canada, businesses continue to demonstrate the benefits of scale, the distribution strength, and discipline execution, while maintaining a strong focus on profitable growth.

Speaker #3: Turning to slide 10, wealth management delivered another solid quarter and continues to be an increasingly important contributor to our growth and earnings profile. Momentum remains strong across the platform, with gross sales reaching 4.3 billion dollars and combined net inflows of SEC fund and mutual funds of $934 million.

Denis Ricard: Momentum remains strong across the platform, with gross sales reaching CAD 4.3 billion and combined net inflows of seg fund and mutual fund of CAD 934 million. We further strengthened our leadership position in the Canadian seg fund market, maintaining the number 1 position for both growth and net sales. Individual seg funds growth sales increased 52% year-over-year to more than CAD 2 billion, while net sales exceeded CAD 1 billion. This performance reflects the strength of our growing distribution networks, strong advisor engagement, and the attractiveness of our product offering. In mutual funds, gross sales increased 46% year-over-year to CAD 644 million, while net outflows of CAD 73 million were recorded. Sales of other individual savings product reached CAD 449 million, up 5% from last year. Finally, in group savings and retirement, total sales exceeded CAD 1.1 billion, up 35% year-over-year, supported by strong momentum in accumulation products.

Speaker #3: We further strengthened our leadership position in the Canadian SEC fund market, maintaining the number one position for both growth and net sales. Individual SEC funds gross sales increased 52% year over year, to more than $2 billion, while net sales exceeded $1 billion.

Speaker #3: This performance reflects the strength of our growing distribution networks, strong advisor engagement, and the attractiveness of our product offering. In mutual fund, gross sales increased 46% year over year, to $644 million, while net outflows of $73 million were recorded.

Speaker #3: Sales of other individual savings products reached $449 million, up 5% from last year, and finally, in group savings and retirement, total sales exceeded $1.1 billion, up 35% year over year, supported by strong momentum in accumulation products.

Speaker #3: Total assets under management increased 15% year over year. As we continue to build one of the Canada's leading independent wealth franchises, we remain well-positioned to benefit from long-term wealth accumulation trends and generate sustainable growth in assets, earnings, and shareholder value.

Denis Ricard: Total assets under management increased 15% year-over-year. As we continue to build one of Canada's leading independent wealth franchise, we remain well-positioned to benefit from long-term wealth accumulation trends and generate sustainable growth in assets, earnings, and shareholder value. Turning now to slide 11, our US operations remain an important growth platform and a valuable contributor to the diversification of our business and earnings profile. The quarter once again demonstrated the benefits of our diversified US presence across both Individual Insurance and Dealer Services. In Individual Insurance, sales reached a quarterly record of CAD 86 million, up 10% from a year ago. This strong performance was driven by continued growth in the Final Expense and middle market segments, supported by disciplined sales practices, key digital capabilities, and strong engagement across our distribution network.

Speaker #3: Turning now to slide 11, our U.S. operations remain an important growth platform and a valuable contributor to the diversification of our business and earnings profile.

Speaker #3: The quarter once again demonstrated the benefits of our diversified U.S. presence across both individual insurance and dealer services. In individual insurance, sales reached a quarterly record of $86 million dollars, up 10% from a year ago.

Speaker #3: This strong performance was driven by continued growth in the final expense and middle market segments, supported by disciplined sales practices, key digital capabilities, and strong engagement across our distribution network.

Speaker #3: In dealer services, sales totaled $292 million dollars, broadly in line with the same quarter last year, despite less favorable U.S. auto market conditions. The business continues to benefit from the effectiveness and diversity of its distribution channels.

Denis Ricard: In Dealer Services, sales totaled CAD 292 million, broadly in line with the same Q2 last year, despite less favorable US auto market conditions. The business continues to benefit from the effectiveness and diversity of its distribution channels as well as the quality of our products and service. Our focus remains on strengthening distribution relationship and continuing to enhance business quality and long-term profitability. Turning to slide 12. Our results continue to demonstrate solid progress toward our financial targets and reinforce our confidence in the outlook for the remainder of the year. Core EPS increased 8% year over year in the first six months of 2026, reflecting continued profitable growth across the organization. Our trailing 12-month Core ROE stood at 17.5% as of 30 June, already meeting our 2026 target. This performance reflects disciplined execution, strong fundamentals, and our continued focus on sustainable growth and capital efficiency.

Speaker #3: As well as the quality of our products and services, our focus remains on strengthening distribution relationships and continuing to enhance business quality and long-term profitability.

Speaker #3: Turning to slide 12, our results continue to demonstrate solid progress toward our financial targets and reinforce our confidence in the outlook for the remainder of the year.

Speaker #3: Core EPS increased 8% year over year in the first six months of 2026, reflecting continued profitable growth across the organization. Our trailing 12-month core ROE stood at 17.5% at June 30th, already meeting our 2026 target.

Speaker #3: This performance reflects discipline execution, strong fundamentals, and our continued focus on sustainable growth and capital efficiency. Organic capital generation remains a key strength of the organization.

Denis Ricard: Organic capital generation remains a key strength of the organization. Year to date, we have generated CAD 335 million of organic capital, keeping us well on track toward our objective of generating more than CAD 700 million in 2026. Consistent with historical trends, capital generation is typically stronger in H2 of the year, reinforcing our confidence in achieving this objective. Finally, our core dividend payout ratio remained within our target range at approximately 30%. With that, I will now hand it over to Éric, who will review our Q2 profitability and capital position in more detail. Éric?

Speaker #3: Year to date, we have generated $335 million of organic capital, keeping us well on track toward our objective of generating more than $700 million in 2026.

Speaker #3: Consistent with historical trends, capital generation is typically stronger in the second half of the year, reinforcing our confidence in achieving this objective. Finally, our core dividend payout ratio remained within our target range at approximately 30%.

Speaker #3: With that, I will now hand it over to Eric who will review our second quarter profitability and capital position in more detail. Eric.

Speaker #2: Thank you, Denis, and good morning, everyone. I'm pleased to walk you through our second quarter results, which once again demonstrate the strength of our diversified business model, sustained business momentum, and robust capital position.

Éric Jobin: Thank you, Denis, and good morning, everyone. I'm pleased to walk you through our Q2 results, which once again demonstrate the strength of our diversified business model, sustained business momentum, and robust capital position. Let me begin with slide 14, where I'd like to highlight three key takeaways before reviewing the segment's results. First, we delivered strong profitability. Core earnings reached CAD 330 million, and Core ROE was 18.5% on a quarterly annualized basis and 17.5% last 12 months. Net income was CAD 384 million, which is higher than core earnings, supported by favorable market-related impacts during the quarter. Second, our earnings mix continues to evolve positively. Wealth Management delivered another strong quarter, driven by strong organic momentum, the increasing scale of our wealth platform, favorable markets, and the contribution of RF Capital.

Speaker #2: Let me begin with slide 14, where I'd like to highlight three key takeaways before reviewing the segments results. First, we delivered strong profitability, core earnings reached $330 million, and core ROE was 18.5% on a quarterly annualized basis, and 17% 17.5% last 12 months.

Speaker #2: Net income was $384 million, which is higher than core earnings, supported by favorable market-related impacts during the quarter. Second, our earnings mix continues to evolve positively.

Speaker #2: Wealth management delivered another strong quarter driven by strong organic momentum the increasing scale of our wealth platform, favorable markets, and the contribution of RF capital.

Speaker #2: Third, with a solvents ratio of 137% and 1.1 billion of capital available for deployment, our capital position is robust and we have substantial capacity to invest for growth.

Éric Jobin: Third, with a solvency ratio of 137% and CAD 1.1 billion of capital available for deployment, our capital position is robust, and we have substantial capacity to invest for growth. Let's now take a look at the Q2 core earnings results by segments by turning to slide 15 with Insurance, Canada. This sector delivered another strong quarter with core earnings of CAD 128 million, demonstrating the stability and profitability of the business. Experience remained favorable, contributing CAD 19 million pre-tax to earnings through favorable mortality and morbidity experience. While this was below the exceptionally strong experience gain of CAD 31 million recorded a year ago, it reflects continued solid risk management across the portfolio. Core earnings also benefited from higher combined risk adjustment release and CSM recognized for service provided, particularly in Individual Insurance and employee plans, as well as lower core income taxes during the quarter.

Speaker #2: Let's now take a look at the second quarter core earnings results by segments. By turning to slide 15, with insurance Canada. This sector delivered another strong quarter with core earnings of $128 million, demonstrating the stability and profitability of the business.

Speaker #2: Experience remained favorable, contributing $19 million pre-tax to earnings through favorable mortality and morbidity experience. While this was below the exceptionally strong experience gain of $31 million recorded a year ago, it reflects continued solid risk management across the portfolio.

Speaker #2: Core earnings also benefited from higher combined risk adjustment release, and CSM recognized for service provided, particularly in individual insurance and employee plans, as well as lower core income taxes during the quarter.

Speaker #2: These positive factors were partially offset by lower earnings from core non-insurance activities, primarily year over year in earlier in dealer services. Let's now turn to wealth management on slide 16.

Éric Jobin: These positive factors were partially offset by lower earnings from core non-insurance activities, primarily year-over-year in Dealer Services. Let's now turn to Wealth Management on slide 16. Wealth Management delivered another strong quarter, with core earnings increasing 37% year-over-year to CAD 155 million. This performance was driven by higher combined risk adjustment release and CSM recognized for services provided, benefiting from strong segregated fund inflows and favorable financial markets. In addition, insurance experience gains of CAD 2 million were recorded during the quarter. Core non-insurance activities also contributed meaningfully to earnings growth, supported by higher net revenue on assets, advisor recruitment, and the strong contribution from RF Capital Group of CAD 13 million, which continues to perform well and better than expected at time of acquisitions. These positive drivers were partially offset by higher expenses incurred to support business growth and expansion.

Speaker #2: Wealth management delivered another strong quarter with core earnings increasing $37% year over year to $155 million. This performance was driven by higher combined risk adjustment release, and CSM recognized for services provided, benefiting from strong segregated fund inflows and favorable financial markets.

Speaker #2: In addition, insurance experience gains of $2 million were recorded during the quarter. Core non-insurance activities also contributed meaningfully to earnings growth, supported by higher net revenue on assets, advisor recruitment, and the strong contribution from RF capital group of $13 million, which continues to perform well and better than expected at time of acquisitions.

Speaker #2: These positive drivers were partially offset by higher expenses incurred to support business growth and expansion. Overall, wealth management continues to enhance the quality and diversity of our earning base while delivering attractive profitability and strong earnings growth.

Éric Jobin: Overall, Wealth Management continues to enhance the quality and diversity of our earning base while delivering attractive profitability and strong earnings growth. Turning to slide 17 for US Operations. Q2 core earnings in our US Operations were CAD 24 million, compared to CAD 36 million a year ago. In Individual Insurance, the strong earnings growth achieved over recent year continues to be reflected by high levels of risk adjustment release and CSM recognized for services provided. This quarter, however, growth was moderated by experience loss of CAD 8 million, mainly due to unfavorable mortality at Fidelity Life, arising from a small number of large claims, which we view as statistical fluctuation. Before these experience losses, which are expected to be non-recurring, the combined contribution from Fidelity Life and iA Financial was neutral to core earnings.

Speaker #2: Turning to slide 17 for US operations, second quarter core earnings in our US operations were $24 million compared to $36 million a year ago.

Speaker #2: In individual insurance, the strong earnings growth achieved over recent year continues to be reflected by high levels of risk adjustment release and CSM recognized for services provided.

Speaker #2: This quarter, however, growth was moderated by experience loss of $8 million mainly due to unfavorable mortality at fidelity life arising from a small number of large claims which we view as statistical fluctuation.

Speaker #2: Before these experience losses, which are expected to be non-recurring, the combined contribution from fidelity life and eFinancial was neutral to core earnings. As a result, we continue to expect the acquisition to be accurate to core earnings in the second half of 2026.

Éric Jobin: As a result, we continue to expect the acquisition to be accretive to core earnings in H2 2026. In Dealer Services, core earnings continued to reflect a sales mix weighted toward insurance products. While the pace of earnings improvement has been slower than originally anticipated, we continue to implement a series of management actions designed to improve long-term profitability and overall business quality. As these initiatives are implemented, some earnings variability may occur. We remain confident that the actions we are taking position the business to deliver stronger, more profitable, and sustainable growth over time. Now turning to slide 18 for the result of the investment segment. Core earnings for the quarter were CAD 79 million compared to CAD 102 million a year ago and to CAD 93 million in Q1.

Speaker #2: In dealer services, core earnings continued to reflect a sales mix weighted toward insurance product. While the pace of earnings improvement has been slower than originally anticipated, we continue to implement a series of management actions designed to improve long-term profitability and overall business quality.

Speaker #2: As these initiatives are implemented, some earnings variability may occur. We remain confident that the actions we are taking position the business to deliver stronger, more profitable, and sustainable growth over time.

Speaker #2: Now turning to slide 18 for the result of the investment segment, core earnings for the quarter were $79 million compared to $102 million a year ago, and to $93 million in the first quarter.

Speaker #2: The year over year decrease was mainly driven by higher financing charge on debt ventures semi-annual dividends on pref shares, and higher core income taxes.

Éric Jobin: The year-over-year decrease was mainly driven by higher financing charge on debentures, semiannual dividends on pref shares, and higher core income taxes. Core earnings were driven by a core net investment result of CAD 129 million, which is CAD 2 million higher than for the same period last year. This result consists of expected investment earnings of CAD 119 million and favorable credit experience of CAD 10 million, which is attributable to both the fixed income and car loan portfolios. Quarter-over-quarter expected investment earnings benefited from the positive contributions of iA Auto Finance and the capital issued in May. These benefits were offset by a reduction in invested assets, mainly due to the share buyback program. Core earnings adjustment generated a +CAD 104 million impact during the quarter, driven by favorable macroeconomic variation in the non-fixed income asset, particularly the strong performance of public equities.

Speaker #2: Core earnings were driven by a core net investment result of $129 million which is $2 million higher than for the same period last year.

Speaker #2: This result consists of expected investment earnings of $119 million and favorable credit experience of $10 million which is attributable to both the fixed income and car loan portfolios.

Speaker #2: Quarter-over-quarter expected investment earnings benefited from the positive contributions of high auto finance and the capital issued in May. These benefits were offset by a reduction in invested assets, mainly due to the share buyback program.

Speaker #2: Core earnings adjustment generated a positive impact of $104 million during the quarter, driven by favorable macroeconomic variation in the non-fixed income asset, particularly the strong performance of public equities.

Speaker #2: Moving to slide 19 for the results of the corporate segment, we continue to demonstrate disciplined expense management during the quarter with core corporate expenses totaling $74 million before taxes compared to $75 million a year ago.

Éric Jobin: Moving to slide 19 for the results of the corporate segment. We continued to demonstrate disciplined expense management during the quarter, with core corporate expenses totaling CAD 74 million before taxes, compared to CAD 75 million a year ago. This result included core other expenses of CAD 65 million before taxes, which is at the low end of the quarterly target range of CAD 70 million ± CAD 5 million, as well as CAD 9 million of higher-than-expected provision for variable compensation, reflecting both the company's strong operating performance and share price appreciation during the quarter. While maintaining a strong focus on expense management and operational efficiency, we continue to invest in strategic priorities, including AI capabilities and future growth initiatives. As a result, we expect core other expenses in Q3 and Q4 to trend toward the midpoint of our target range.

Speaker #2: This results included core other expenses of $65 million before taxes which is at the low end of the quarterly target range of $70 million plus or minus $5 million, as well as $9 million of higher than expected provision for variable compensation reflecting both the company's strong operating performance and share price appreciation during the quarter.

Speaker #2: While maintaining a strong focus on expense management and operational efficiency, we continue to invest in strategic priorities including AI, capabilities, and future growth initiatives.

Speaker #2: As a result, we expect core other expenses in the third and fourth quarter to trend toward a midpoint of our target range. Lastly, the consolidated core effective tax rate was $21.2% in the second quarter benefiting from favorable non-recurring items.

Éric Jobin: The consolidated core effective tax rate was 21.2% in Q2, benefiting from favorable non-recurring items. We continue to expect the core effective tax rate for Q3 and Q4 to be positioned toward the upper end of our target range of 21% to 23%. Please turn to slide 20 to review our robust capital position and financial strength. As of 30 June 2026, our solvency ratio stood at 137%, and our capital available for deployment was CAD 1.1 billion. The solvency ratio increased by 3 percentage points during the quarter, driven by the favorable impact of the capital issuance completed in May, solid organic capital generation, and positive macroeconomic impacts. These favorable items were partly offset by the CAD 347 million deployed through the share buyback program, investment in organic growth initiatives, and dividend payments to common shareholders.

Speaker #2: We continue to expect the core effective tax rate for the third quarter and fourth quarter to be positioned toward the upper end of our target range of $21 to $23%.

Speaker #2: Please turn to slide 20 to review our robust capital position and financial strength. As at June 30, 2026, our solvency ratio stood at 137%, and our capital available for deployment was $1.1 billion.

Speaker #2: The solvency ratio increased by 3 percentage point during the quarter driven by the favorable impact of the capital issuance completed in May, solid organic capital generation, and positive macroeconomic impacts.

Speaker #2: These favorable items were partly offset by the $347 million deployed through the share buyback program, investment in organic growth initiatives, and dividend payments to common shareholders.

Speaker #2: Overall, our capital position is robust and our deployment capacity provide flexibility to invest in growth opportunities pursue capital allocation priorities, and continue creating value to for shareholders.

Éric Jobin: Overall, our capital position is robust, and our deployment capacity provides flexibility to invest in growth opportunities, pursue capital allocation priorities, and continue creating value for shareholders. To conclude, in Insurance, Canada, favorable insurance experience once again demonstrate the strength of our risk management culture and underwriting discipline. In Wealth Management, we are proud of the success we have achieved and of the sustainable strength of our segregated fund products. In the US, we continue to take deliberate management actions to enhance the profitability of Dealer Services. While these actions may affect short-term results, they support long-term profitable growth. Our Q2 results highlight the strength of our diversified business model, and we are entering H2 of 2026 from a position of strength. Finally, Core ROE is well-anchored over 17%. With that, I will turn the call back to Denis.

Speaker #2: To conclude, in insurance Canada, favorable insurance experience once again demonstrate the strength of our risk management culture and underwriting discipline. In wealth management, we are proud of the success we have achieved and of the sustainable strength of our segregated fund products.

Speaker #2: In the US, we continue to take deliberate management actions to enhance the profitability of dealer services. While these actions may affect short-term results, they support long-term profitable growth.

Speaker #2: Our Q2 results highlight the strength of our diversified business model and we are entering the second half of 2026 from a position of strength.

Speaker #2: Finally, core ROE is well anchored over 17%. With that, I will turn the call back to Denis.

Speaker #1: Thank you, Eric. Please turn to slide 22. As we look back on the second quarter, we're pleased with the strong execution across the organization.

Denis Ricard: Thank you, Eric. Please turn to slide 22. As we look back on Q2, we're pleased with the strong execution across the organization. While Wealth Management continues to increase its contribution to earnings and growth, the strength of our company remains rooted in our unique, diversified business model and the multiple drivers of growth across the organization. The breadth of our platform enables us to generate consistent profitability and create value through a variety of business and market environments. The 25% increase in premiums and deposits, together with the 37% growth in assets over the past year, reflects the strength of our distribution capabilities, our ability to attract and support high-quality advisors, and the disciplined execution of our growth strategy. We continue to see strong momentum in Wealth Management, supported by elevated activity across our distribution platforms, strong net inflows, and growing assets.

Speaker #1: While wealth management continues to increase its contribution to earnings and growth, the strength of our company remains rooted in our unique diversified business model and the multiple drivers of growth across the organization.

Speaker #1: The breadth of our platform enables us to generate consistent profitability and create value through a variety of business and market environments. The 25% increase in premiums and deposits together with the $37% growth in assets over the past year reflects the strength of our distribution capabilities, our ability to attract and support high-quality advisors and the disciplined execution of our growth strategy.

Speaker #1: We continue to see strong momentum in Wealth Management, supported by elevated activity across our distribution platforms, strong net inflows, and growing assets. At the same time, we remain focused across all of our businesses on generating profitable growth and making deliberate decisions that strengthen the quality and sustainability of future earnings.

Denis Ricard: At the same time, we remain focused across all of our businesses on generating profitable growth and making deliberate decisions that strengthen the quality and sustainability of future earnings. Returning value to shareholders remain a key priority. During the quarter, we continue to do so through both dividends and share repurchases under our NCIB programs. With a solvency ratio of 137% and CAD 1.1 billion of capital available for deployment, we remain well-positioned to support future growth opportunities while maintaining our disciplined approach to capital allocation. As we move into H2 of the year, we remain focused on executing our strategy, supporting our distribution networks, delivering profitable growth, and creating long-term value for shareholders. Thank you. Operator, we are now ready to take questions.

Speaker #1: Returning value to shareholders remains a key priority during the quarter we continue to do so through both dividends and share repurchases under our NCIB programs.

Speaker #1: And with the solvency ratio of $137% and $1.1 billion of capital available for deployment, we remain well positioned to support future growth opportunities while maintaining our disciplined approach to capital allocation.

Speaker #1: As we move into the second half of the year, we remain focused on executing our strategy supporting our distribution networks delivering profitable growth and creating long-term value for shareholders.

Speaker #1: Thank you. Operator, we're now ready to take questions.

Speaker #3: Thank you. We will now begin the question-and-answer session. To join the question queue, you may press star, then one on your telephone keypad.

Operator 3: Thank you. We will now begin the question and answer session. To join the question queue, you may press star then one on your telephone keypad. You will hear a tone acknowledging your request. If you are using a speakerphone, please pick up your handset before pressing any keys. To withdraw your question, please press star then two. We will pause for a moment as callers join the queue. First question is from Doug Young from Desjardins Capital Markets. Please go ahead.

Operator: Thank you. We will now begin the question and answer session. To join the question queue, you may press star then one on your telephone keypad. You will hear a tone acknowledging your request. If you are using a speakerphone, please pick up your handset before pressing any keys. To withdraw your question, please press star then two. We will pause for a moment as callers join the queue. First question is from Doug Young from Desjardins Capital Markets. Please go ahead.

Speaker #3: You will hear a tone acknowledging your request. If you're using a speakerphone, please pick up your handset before pressing any keys. To withdraw your question, please press star, then two.

Speaker #3: We will pause for a moment as callers join the queue. First question is from Doug Young from Desjardins Capital Markets. Please go ahead.

Doug Young: Hi. Good morning. Just wanted to maybe dig a little bit deeper onto the US extended vehicle warranty business. It looks like the US and the US P&A line was down, the non-insurance Core earnings was down quarter-over-quarter. I think, and correct me if I am wrong, there was reference to the loss of dealers on the admin side. I do not know if that was dealers moving to the insurance side. Just trying to get a little bit more into the depth of what you are seeing there and what your expectations are from that business over the coming year.

Speaker #4: Hi, good morning. I just wanted to maybe dig a little bit deeper into the US extended vehicle warranty business. It looks like the US and the US PA line was down.

Speaker #4: The non-insurance coordinates was down quarter over quarter. And I think and correct me if I'm wrong, there was reference to the loss of dealers on the admin side.

Speaker #4: I don't know if that was dealers moving to the insurance side, but just trying to get a little bit more into the depth of what you're seeing there and what your expectations are from that business over the coming year.

Speaker #1: Yeah, it's Denis here. I'll start, and then Eric will follow up on this. Maybe a high-level comment on that business, and as you've seen, in terms of the sales, sales are soft in the quarter.

Denis Ricard: Yeah. It is Denis here. I will start, and then Éric will follow up on this. Maybe a high-level comment on that business, as you have seen in terms of the sales are soft in the quarter. There are things that we do control and things that we do not. There has been some headwind on the car sales that you will hear from us for sure. To me as a CEO, what is important is that from what we control, and there are initiatives that we have been doing for some time already, that are obviously taking a bit of time to have some impact. We are doing the right thing. That is, I think, what is the important message that you have to keep in mind so that we believe that we are going to get the improvement in our profitability over time and the sales growth as well.

Speaker #1: There are things that we do control and things that we do not. And there's been some headwind on the car sales. You'll hear from us for sure.

Speaker #1: But to me, as a CEO, what is important is that from what we control. And there are initiatives that we are we have been doing for some time already that are obviously taking a bit of time to have some impact.

Speaker #1: But we are doing the right thing. That is, I think, what is the important message that you have to keep in mind so that we believe we’re going to get the improvement in our profitability over time and the sales growth as well.

Speaker #1: But it's not linear. I mean, it's not something that is linear and it's just going one way. So sometimes you've got some pause and but Eric, you want to comment more on this?

Denis Ricard: It's not linear. I mean, it's not something that is linear, and it's just going one way. Sometimes you've got some pause. Éric, you want to comment more on this?

Speaker #2: Yeah, I just want to add that Doug, to your question with respect to the PA earnings, being slightly down quarter over quarter, keep in mind that this is a business on the insurance side that has a bit of seasonality.

Éric Jobin: Yeah. I just want to add, Doug, to your question with respect to the P&A earnings being slightly down quarter-over-quarter. Keep in mind that this is a business on the insurance side that has a bit of seasonality. Remember that I talk about this very often, that some of our businesses have seasonality patterns. For Dealer Services in the US, the insurance business has a higher frequency of claims in Q2 and Q3. It's a little bit like iA Auto and Home in Insurance, Canada that tend to have lower expected earnings in Q1. For Dealer Services, in the US, it's Q2 and Q3.

Speaker #2: Remember that I talk about this very often: some of our businesses have seasonality patterns. For dealer services in the US, the insurance business has a higher frequency of claims in the second and third quarters.

Speaker #2: So it's a little bit like IO Minoto in insurance Canada, that tend to have lower expected earnings in the first quarter. For dealer services, it's in the US, it's second and third quarter.

Speaker #4: Yeah, okay. And then can you maybe just flesh out why are the dealers choosing to go with the insurance versus the admin side? Like is there a structural reason that that's like when you look into it, like what do you get back from the dealers why they're choosing to go in that direction?

Doug Young: Yeah. Okay. Can you maybe just flesh out why are the dealers choosing to go with the insurance versus the admin side? Is there a structural reason that that's, like, when you look into it, what do you get back from the dealers why they're choosing to go in that direction?

Speaker #1: So I will ask sorry. I will ask Sean just to talk a bit more about our strategy there and the push that we made on the DAC side last year and the success we've got so far and then the initiatives that we're doing on the other side.

Denis Ricard: I will ask, sorry. I will ask Sean just to talk a bit more about our strategy there and the push that we made on the DAC side last year and the success we've got so far, the initiatives that we're doing on the other side.

Speaker #4: Yeah, thanks, Denis.

Sean O'Brien: Yeah. Thanks, Denis. Just to jump back, our three main actions that we've taken with that business, we started focusing on profitable growth is we've actively repriced all of our products. Good news is now all the sales have an ROE above our expectation. The industry's been fairly price-disciplined in the US, which is helpful, and in Canada. We focused on operations. The last part has been the sales structure. Last year we started with DAC. We saw it as a quick opportunity. DAC is really where we're driving these insurance sales. You can see those numbers coming forward. Really it's a separate channel where we're selling that business. H1 of this year, we've restructured the sales team, and now we have the sales leaders in place focused on the agent and dealer channel, and there's a nice pipeline building.

Speaker #5: Yeah, just I mean, just to jump back, our three main actions are we've taken with that business. We started focusing on profitable growth is we've actively repriced all of our products.

Speaker #5: Good news is now all the sales have an ROE above our expectation. The industry has been fairly price disciplined in the US, which is helpful, and in Canada.

Speaker #5: And then we focused on operations. The last part has been the sales structure. And last year we started with DAC. We saw it as a quick opportunity.

Speaker #5: And DAC is really where we're driving these insurance sales, and you can see those numbers coming forward. So, really, it's a separate channel where we're selling that business.

Speaker #5: And then, the first half of this year, we've restructured the sales team, and now we have the sales leaders in place focused on the agent and dealer channel.

Speaker #5: And there's a nice pipeline building, and I'm confident we'll definitely see some nice growth ahead later this year and into next. But as you said, the business is not perfectly linear.

Sean O'Brien: I'm confident we'll definitely see some nice growth ahead later this year and into next. As we said, the business is not perfectly linear. The gradual recovery is underway. There is some natural attrition as dealers come and go, and usually it's related to acquisitions. A dealer gets bought by another group, and they have another provider, and sometimes you lose stores. That's the most common reason we see it, but that's not the primary driver. Really, what you're seeing is the focus on DAC that started last year, and you'll start to see the dealer and agent channel building in the quarters ahead.

Speaker #5: The gradual recovery is underway. There is some natural attrition as dealers come and go, and usually it's related to acquisitions. A dealer gets bought by another group, and they have another provider, so sometimes you lose stores. That's the most common reason you see it.

Speaker #5: But that's not the primary driver. Really it's just what you're seeing is the focus on DAC that started last year and you'll start to see the dealer and agent channel building in quarters ahead.

Speaker #4: Okay. And then so I appreciate that. And then just Eric, maybe we can go to slide 20 and just maybe I'm just slow this morning, but it's can you help me think through you're solvency ratio is up sequentially, but the capital available for deployment is down.

Doug Young: Okay. I appreciate that. Just, Éric, maybe can we go to slide 20? Maybe I'm just slow this morning, but can you help me think through, your solvency ratio is up sequentially, but the capital available for deployment is down. I can see the different kind of points in there, and it looks like financing activities is included. Can you just help me think through why that would be? What is the binding constraint that helps you define what is available for deployment?

Speaker #4: And I can see the different kinds of points in there, and it looks like financing activities aren't included. Can you just help me think through why that would be?

Speaker #4: And then what is the binding constraints that helps you define what is available for deployment?

Speaker #2: That's a very good question, Doug, because you know that the regulatory regime has many, many constraints in it. One is the solvency ratio. And there are other ones.

Éric Jobin: That's a very good question, Doug, because you know that the regulatory regime has many constraints in it. One is the solvency ratio, and there are other ones, and one has to do with the core ratio as well. This is where right now that iA is constrained. When we calculate the amount of capital available for deployment, we're constrained by the core ratio. The biggest driver of the core ratio constraint is negative reserves. Right now, with the growth that we're experiencing in Insurance, Canada and the segregated funds, this is what is creating a bit of a challenge in the short term because the gains coming from those sales cannot be fully reflected in capital available for deployment. It will flow out in the future. In the short term, this is the constraint that we're binded by.

Speaker #2: And one has to do with the core ratio as well. And this is where right now that IA is constrained. When we calculate the amount of capital available for deployment, we're constrained by the core ratio.

Speaker #2: And the biggest driver of the core ratio constraint is negative reserves. So right now with the growth that we're experiencing in insurance Canada and the segregated funds, this is what is creating a bit of challenge in the short term because the gains coming from those sales cannot be fully reflected in capital available for deployment.

Speaker #2: So but it will flow out in the future. But in the short term, this is the constraint that we're binded by.

Speaker #1: And for the first part of the question, the capital for deployment already incorporates the potential financing. So when we do go out in the market and we raise capital, it does not change the capital for deployment.

Denis Ricard: For the first part of the question, the capital for deployment already incorporates the potential financing. When we do go out in the market and we raise capital, it does not change the capital for deployment.

Speaker #2: Yeah, absolutely. The way to look at capital available for deployment the way we talk about it is to talk about the current excess capital that we have in the books and potential remaining financial flexibility.

Éric Jobin: No. Yeah, absolutely. The way to look at capital available for deployment, the way we talk about it, is to talk about the current excess capital that we have in the books and potential remaining financial flexibility. What Denis is mentioning, for example, in Q1, we said that capital available for deployment was CAD 1.2 billion, it was a combination of both elements. As you know, we issued sub-debt in Q2, it did not change the number. Really what drove the decrease of about CAD 100 million quarter-over-quarter is the share buyback program. The financial flexibility was already in there.

Speaker #2: So what Denis is mentioning, for example, in the first quarter, we said that capital available for deployment was 1.2 billion. So it was a combination of both elements.

Speaker #2: As you know, we issued sub debt in the second quarter, and it did not change the number. So really, you know, what drove the decrease of about $100 million quarter over quarter is the share buyback program.

Speaker #2: So, the financial flexibility was already in there.

Speaker #4: This is perfect. I appreciate the color. Thank you.

Doug Young: This is perfect. I appreciate the color. Thank you.

Speaker #3: Next question is from Tom McKinnon from BMO. Please go ahead.

Operator 3: The next question is from Tom MacKinnon from BMO. Please go ahead.

Operator: The next question is from Tom MacKinnon from BMO. Please go ahead.

Speaker #6: Yeah, thanks very much. Good morning. Question just with respect to Canadian individual insurance sales. 2025 was up nicely 6% over 2024. But you're starting off 2026 here.

Tom MacKinnon: Yeah. Thanks very much. Good morning. A question just with respect to Canadian Individual Insurance sales. 2025 was up nicely 6% over 2024. You're starting off 2026 here down in Q1 year-over-year, down in Q2 year-over-year in terms of new sales. I think in Q1 you might have been up a bit in number of policies issued, but looks like now you're down year-over-year in terms of number of policies issued. What's happening here? What can you do to improve this trend going forward? Thanks.

Speaker #6: Down in the first quarter year over year, down in the second quarter year over year in terms of new sales. And I think in the first quarter you might have been up a bit in policies, number of policies issued, but it looks like now you're down year over year in terms of number of policies issued.

Speaker #6: So what's happening here? What can you do to improve this trend going forward? Thanks.

Speaker #1: Thank you, Thomas. It's Denis here. Thank you for the question. Rodney will answer that question. But first, I just want to make a high-level comment.

Denis Ricard: Thank you, Tom. It's Denis here. Thank you for the question. Renée will answer that question. First, I just want to make a high-level comment. When you look at the overall growth in the organization for the quarter, we're very pleased. Like I said before, 25% grew in terms of net premiums, and the AUA, AUM grew by 37%. We're very pleased. Obviously, the Wealth Management business has done a fantastic growth trajectory. When you look at some other sectors like Individual Insurance and special market, you see some kind of pause in terms of growth. It's really a reflection of some of the initiatives that we made because we want to stay disciplined in underwriting, pricing, risk management, and everything.

Speaker #1: When you look at the overall growth in the organization for the quarter, we're very pleased like I said before, 25% grew in terms of net premiums and the AUAUM grew by 37%.

Speaker #1: So we're very, very pleased. Obviously, the wealth management businesses has done a fantastic growth trajectory. But then when you look at some other sectors like individual insurance and special markets and you see some kind of pause in terms of growth, but it's really a reflection of some of the initiative that we made because we want to stay disciplined and underwriting pricing, risk management, and everything.

Speaker #1: So Rodney will go into more details, but you have to keep in mind that sometimes there are pockets of industries that we don't want to play in and it may have some impact.

Denis Ricard: Renée will go into more details. You have to keep in mind that sometimes there are pockets of industries that we don't want to play in, and it may have some impact.

Speaker #7: Thank you, Denis. Thank you, Thom, for your question. First of all, when you look at the number of policies sold, keep in mind that we're the leader in number of policies sold in Canada with 25% of the market share.

Renée Laflamme: Thank you, Denis. Thank you, Tom, for your question. First of all, when you look at the number of policies sold, keep in mind that we're the leader in number of policies sold in Canada with 25% of the market share. Thus, it may happen that we have a softer quarter. Again, we see the activity, and we're confident in our ability to continue to grow the number of policies sold. Looking at it from a dollar perspective sales, we did this quarter CAD 102 million, similar or very slightly lower than the same quarter last year. We're looking at the market with increased vigilance, especially relative to certain sales concept in the high mid large case range. We're staying disciplined and making sure that we are not taking undue risk. That would cover.

Speaker #7: Thus, it may happen that we have a softer quarter. activity and we're confident in our ability to continue to grow the number of policies sold.

Speaker #7: Looking at it from a dollar perspective, sales we did this quarter were $102 million, similar or very slightly lower than the same quarter last year.

Speaker #7: We're looking at the market with increased vigilance, especially relative to certain sales concept in the high, mid, large case range. And we're staying disciplined and making sure that we are not taking on due risk.

Speaker #7: So that would cover and I think Eric, if you want to reinforce on some of our risk management.

Renée Laflamme: I think, Éric, if you want to reinforce on some of our risk management.

Speaker #2: Yeah, I just want to take this opportunity to reinforce Rodney's message and make a connection between what we mentioned at the investor event and our risk management practices and controls.

Éric Jobin: I just want to take this opportunity to reinforce Renée's message and make a connection with what we mentioned at the investor event to our risk management practices and control. What Renée is mentioning is that we don't want to take undue risk in the books and face lapse issues with aggressive sales concept in from eight to 10 years from now. We're careful with that and making sure that the business we bring in the books is creating value for the company, as well for the client and the advisor, not only for the latest two.

Speaker #2: What Rodney is mentioning is that we don't want to take on undue risk in the books and face lapse issues with aggressive sales concepts.

Speaker #2: And from an 8- to 10-year perspective from now. So we're careful with that, making sure that the business we bring on the books is creating value for the company, as well as for the client and the advisor.

Speaker #2: Not only for the latest two.

Speaker #4: Is there any product set where you're taking increased vigilance? Is it PAR, non-PAR, Term? I'm not sure. If you could elaborate on that?

Tom MacKinnon: Is there any product set that you're taking the increased vigilance in? Is it par, non-par, term? I don't know. If you can elaborate on that please.

Speaker #7: Well, as you know, 50% or more of the products sold in the industry is the PAR product. So obviously, the increased vigilance is mostly on the PAR product.

Renée Laflamme: Well, as you know, 50% or more of the product sold in the industry is the par product. Obviously, the increased vigilance is mostly on the par product, those product that accumulates value early on. Those are the ones.

Speaker #7: Those products that accumulates value early on. So those are the ones.

Speaker #4: Thanks.

Tom MacKinnon: Thanks.

Speaker #3: The next question is from Gabriel Duchene from National Bank of Canada. Please go ahead.

Operator 3: The next question is from Gabriel Dechaine from National Bank of Canada. Please go ahead.

Operator: The next question is from Gabriel Dechaine from National Bank of Canada. Please go ahead.

Speaker #8: Hey, good morning. Quick one on the experience gains in the non-prime auto. What were those? Did you release allowances or were impairments just below expectation?

Gabriel Dechaine: Hey, good morning. Quick one on the experience gains in the non-prime auto. What were those? Did you release allowances or were impairments just below expectation? Can you delve into that a little bit?

Speaker #8: Can you delve into that a little bit?

Speaker #2: Remember, Gabriel, that a couple of years ago we strengthened the underwriting on our credit portfolio for auto loans. And it's just collecting the benefits of that strengthening that happened a little while ago.

Éric Jobin: Remember, Gabriel, that a couple of years ago, we strengthened the underwriting.

Éric Jobin: on our credit portfolio for auto loans, and it's just collecting the benefits of that strengthening that happened a little while ago. The experience has just been better than expected in this case. Nothing special to mention about any allowance release or anything. It's just experience-based.

Speaker #2: The experience has just been better than expected in this case. Nothing special to mention about any allowance release or anything. It's just experience-based.

Speaker #8: No, I understand the repositioning you did a couple of years ago. I'm just, from an accounting standpoint, it could come from a variety of—if we, non-insurance accounting rather—I just want to get a sense. You have an assumption for a certain amount of impairments, and it was a lower number than that.

Gabriel Dechaine: No, I understand the repositioning you did a couple of years ago. I'm just from an accounting standpoint, it could come from a variety of non-insurance accounting rather. I just want to get a sense. You have an assumption for a certain amount of impairments, and it was a lower number than that. Is that essentially it?

Speaker #8: Is that essentially it?

Speaker #2: Yeah, that's exactly what I referred to when I say it's an experience positive experience gain.

Éric Jobin: Yeah, that's exactly what I refer-

Gabriel Dechaine: Okay

Éric Jobin: to when I say it's a positive experience gain.

Speaker #8: Got it. Okay. And then yeah, sorry. Somebody else.

Gabriel Dechaine: Got it. Okay.

Éric Jobin: It-

Gabriel Dechaine: Yeah, sorry. Somebody else.

Speaker #2: No, I just wanted to add it's actual minus expected, Gabriel.

Éric Jobin: No. I just wanted to add, it's actual minus expected, Gabriel.

Speaker #8: Yeah, yeah. Okay. Now, bigger picture question for Denis. And I'm starting to get well, not starting, I'm getting this more frequently, I should say, from investors.

Gabriel Dechaine: Yeah. Okay. Now, bigger picture question for Denis. I'm getting this more frequently, I should say, from investors about all the companies I cover as their stocks are at all-time highs nearly every day. Valuations are very unusually high compared to any historical record. If I tie that into your M&A appetite, which you've been very transparent over the course of the time I've covered the company. You're an acquisitive company. You got in your slides 30 plus since 2015. How does the stock's valuation influence your willingness to do maybe a more transformational transaction than the ones you've done in the past? What sort of conditions would you need for Industrial Alliance to issue equity to finance a transaction, let's say?

Speaker #8: About all the companies I cover is their stocks are at all-time highs nearly every day. Valuations are getting very unusually high compared to any historical record.

Speaker #8: If I tie that into your M&A appetite, which you've been very transparent about over the course of the time I've covered the company. You're an acquisitive company.

Speaker #8: You got in your slides 30 plus in 2015. How does the stocks valuation influence your willingness to do maybe a more transformational transaction than the ones you've done in the past?

Speaker #8: What sort of conditions would you need for industrial alliance to issue equity to finance a transaction, let's say?

Éric Jobin: Well, first of all, the higher the price, as we all know, the cheaper would be to buy an organization. If we need to raise capital, that would be an obvious one.

Speaker #1: Well, first of all, the higher the price, as we all know, the cheaper it would be to buy an organization. If we need to raise capital, that would be an obvious one.

Speaker #1: Now, with that said, we have plenty of capital right now, 1.1 billion. We're generating 700 a year. So and our buyback strategy, obviously, depends on various criteria.

Denis Ricard: With that said, we have plenty of capital right now, CAD 1.1 billion. We're generating CAD 700 a year. Our buyback strategy obviously depends on various criteria. One of it is any potential acquisition that we would do in the near future. That would be one of the element that we would take into consideration. I would add to this, being a CAD 18 billion-plus market cap company, we might target something that is bigger than what we have done in the past. We've done the biggest one would be like CAD 1 billion some years ago, so we might go a bit higher than that. It has to be really strategic for us to go with a huge acquisition that will be transformational for the organization. We don't bet the farm. It's not part of our DNA.

Speaker #1: One of it is the any potential acquisition that we would do in the near future. So that would be one of the elements that we would take into consideration.

Speaker #1: So, and I would say I would add to this, I mean, being an $18 billion plus market cap company, we might target something that is bigger than what we have done in the past.

Speaker #1: I mean, we've done the biggest one would be like a billion dollar some years ago. So we might go a bit higher than that.

Speaker #1: But I mean, it has to be really strategic for us to go with a huge acquisition that would be transformational for the organization. We don't bet the farm.

Speaker #1: It's not part of our—it's not part of our DNA. So, it is possible that at some point we might go bigger, but it would have to be a really, really good fit for the organization.

Éric Jobin: It is possible that at some point we might go bigger, it would have to be a really good fit for the organization.

Speaker #8: Got it. And then I guess this is a question I can ask any of the companies I cover, but start with you. Thank you.

Gabriel Dechaine: Got it. I guess this is a question I can ask any of the companies I cover, I'll start with you. Thank you. Enjoy the rest of the week.

Speaker #8: And enjoy the rest of the week.

Speaker #1: Thank you.

Denis Ricard: Thank you.

Speaker #3: The next question is from Mario Mendonca from TD Securities. Please go ahead.

Operator 3: The next question is from Mario Mendonca from TD Securities. Please go ahead.

Operator: The next question is from Mario Mendonca from TD Securities. Please go ahead.

Speaker #4: Good morning. I want to focus on two businesses. One that's functioning at a very high level, your wealth business, and one that isn't. First, let's focus on the US business, the business that I think Denis you'd agree is currently functioning below its long-term earnings potential.

Mario Mendonca: Good morning. I want to focus on two businesses, one that's functioning at a very high level, your Wealth Management business, and one that isn't. First, let's focus on the US business, the business that I think, Denis, you'd agree, is currently functioning below its long-term earnings potential. First, you'd agree with that notion that this is significantly below what you expected from this business at this time. Is that true?

Speaker #4: First, you'd agree with that notion that this is significantly below what you expected from this business at this time. Is that true?

Speaker #1: That's a closed question. The closed answer is yes.

Denis Ricard: That's a closed question. The closed answer is yes.

Speaker #4: So, the way I'm going with the question, then, is this: there are things you need to do to fix the business, and you've talked about that in response to Doug's question.

Mario Mendonca: The way I'm going with the question then is this, there are things you need to do to fix the business, and you talked about that in response to Doug's question, but what would be interesting to know is the timing. When you think about your budgeting process, and I suspect Industrial is like any other company that has an ongoing iterative budgeting process, does the US business grow in 2027 and 2028 in that process?

Speaker #4: But what would be interesting to know is the timing. So when you think about your budgeting process, and I suspect industrials like any other company, that has an ongoing iterative budgeting process, does the US business grow in 2027 and 2028 in that process?

Speaker #1: Okay. So from where we are right now, I see the US business as a tailwind. So the answer is yes.

Denis Ricard: Okay. From where we are right now, I see the US business as a tailwind. The answer is yes.

Speaker #4: So you do have some growth built in in the budgeting process in 2027, 2028?

Mario Mendonca: You do have some growth built in in the budgeting process in 2027, 2028?

Speaker #1: Yeah. Okay. Let me go further in this. I try to be as short as possible. First of all, the US live business really, really happy about it.

Denis Ricard: Okay, let me go further in this. I'll try to be as short as possible. First of all, the US life business, really, really happy about it. The American Amicable, obviously forget about the lapse for the last quarter, which was a blip in the graph. Very, very pleased, already above our target and it's growing. It's grown for 16% CAGR for the last 16 years. Really, really pleased. Very steady. According to the plan right now, it's going to be aggressive at the end of the year, and it's growing further along the way. For those two businesses, the answer is yes. There is in our budget process some incremental growth in that business. Now, the US Dealer business, the last one, it's been a disappointing business since we bought the organization. I don't want to go through all the history of that.

Speaker #1: The American amicable I mean, obviously, forget about the lapse for the last quarter, which was a blip in the graph. Very, very pleased, already above our target, and it's growing.

Speaker #1: It's grown at 16% CAGR for the last 16 years. Really, really pleased. Very steady. According to the plan right now, I mean, it's going to be accretive at the end of the year.

Speaker #1: And growing further, along the way. So those two businesses, the answer is yes. I mean, there is in our budget process some incremental growth in that business.

Speaker #1: Now, the US dealer business, the last one, it's been disappointing business since we but the organization, I don't want to go through all the history of that.

Speaker #1: But the team that we have right now, I'm quite confident, and I look at the pipeline that is there—I'm quite confident that it's going to gradually improve.

Denis Ricard: The team that we have right now, I'm quite confident, and I look at the pipeline that is there, I'm quite confident that it's going to gradually improve. It will take time. It's not going to happen in a few quarters. When I look at the growth over, let's say, 2027, 2028, it's going to be a tailwind as far as I'm concerned.

Speaker #1: It would take time. It's not going to happen in a few quarters. But when I look at the growth over, let's say, 2027, 2028, it's going to be a tailwind as far as I'm concerned.

Speaker #4: Yeah. Let's flip over to a business that's at the opposite end of the spectrum, the wealth business. I can appreciate that. And I think anybody can make a convincing argument that the growth in earnings in the wealth segment, this pace of growth is extraordinary.

Mario Mendonca: Okay, let's flip over to a business that's at the opposite end of the spectrum, the wealth business. I can appreciate that, and I think anybody can make a convincing argument that the growth in earnings in the wealth segment, this pace of growth is extraordinary, and you'd expect the pace of growth to slow. I think I can make that argument myself convincingly. What I'm struggling with right now is this new level of earnings in the wealth business. Is there any reason why it would have to sort of check back? Was there anything in the quarter that would cause the results to be unusually strong and sort of return to a more normal level as early as next quarter? Or would you argue that it's structurally a higher, more profitable business at this point?

Speaker #4: And you'd expect the pace of growth to slow. And I think I can make that argument myself, convincingly. But what I'm struggling with right now is this new level of earnings in the wealth business.

Speaker #4: Is there any reason why it would have to sort of check back? Was there anything in the quarter that would cause the results to be unusually strong and sort of return to more a more normal level as early as next quarter?

Speaker #4: Or would you argue that it's structurally a higher, more profitable business at this point?

Speaker #1: It's a new high as far as I'm concerned. And I see no reason I mean, obviously, the market recently has been quite it has collaborated significantly.

Denis Ricard: It's a new high as far as I'm concerned, I see no reason. Obviously, the market recently has collaborated significantly. If you look at the net flows from the organization, the consistency of the net flows over the years, I see no reason why it would stop at this point. Éric wants to add that. We're debating here who should answer that question. Éric, you want to add something, go ahead.

Speaker #1: But if you look at the net flows from the organization, the consistency of the net flows over the years, I see no reason why it would stop at this point.

Speaker #1: And Eric wants to add that we're debating here who should answer that question, but so Eric, you want to add something? Go ahead.

Speaker #2: Yeah, I just want to add, because I know that at the end of this call, Mario, you all need to update your numbers.

Éric Jobin: Yeah, I just want to add because I know that at the end of this call, Mario, you all need to update your numbers. There's one flavor I wanted to provide on this question that I expected today, to be honest, is when you look at the excellent result we had in the Wealth Management segment, it's important to note that the macroeconomic was a tailwind, that's for sure, and the organic or structural, as you mentioned, also contributed, and it's about 50/50. Just wanted to provide this additional information to you so that looking forward, you can adjust for that because, of course, the market has been great, and we love it, and I'd like it to be the same in Q3 and Q4. We know it's not going to be always like in Q2.

Speaker #2: And there's one flavor I wanted to provide on this question that I expected today to be honest. Is when you look at the excellent result we had in the wealth.

Speaker #2: Wealth management segment, it's important to note that the macroeconomic was a tailwind. That's for sure. And the organic or structural, as you mentioned, also contributed.

Speaker #2: And it's about 50-50, just wanted to provide this action additional information to you so that looking forward, you can adjust for that because, of course, the market has been great and we love it.

Speaker #2: And I'd like it to be the same in the third and fourth quarter. But we know it's not going to be always like in the second quarter.

Speaker #2: I just wanted to provide some color on how to manage this looking ahead.

Éric Jobin: Just wanted to provide you some color on how to manage this looking ahead.

Speaker #4: All right, I think we could all use a little bit of clarity on that as we go forward, because it's hard to interpret. My impression is that this is the new structurally higher level, but perhaps you're cautioning me otherwise.

Mario Mendonca: All right. I think we could all use a little bit of clarity on that as we go forward because it's hard to interpret. I think my impression is that this is the new structurally higher level. Perhaps you're cautioning me otherwise. Is that right?

Speaker #4: Is that right, Eric?

Speaker #1: I would say it's higher. Well, when I said it's a new, it's a new high in terms of AUM and AUA—that's what I'm seeing.

Denis Ricard: When I said it's a new high in terms of AUM and AUA, that's what I'm seeing. I think Éric referred to the increase.

Speaker #1: I think Eric referred to the increase, the 37% half of it is what you call structural.

Éric Jobin: Indeed.

Denis Ricard: The 37%, half of it is what you call structural.

Speaker #2: It's structural or organic related, and half of it is macroeconomic. So, if I connect with Denis—Denis said that it's a new high. Everything else being equal, and the stock market not going down and continuing to increase at a normal pace, you would expect a lower increase looking into Q4 and Q3.

Éric Jobin: It's structural or organic related, and half of it is macroeconomic. If I connect with Denis said that it's a new high. Everything else being equal and stock market not going down and keep increasing at a normal pace, you would expect a lower increase looking into Q4 and Q3.

Speaker #4: That's very clear now. Thank you.

Mario Mendonca: That's very clear now. Thank you.

Speaker #3: The next question is from Paul Holden from CIBC. Please go ahead.

Operator 3: The next question is from Paul Holden from CIBC. Please go ahead.

Operator: The next question is from Paul Holden from CIBC. Please go ahead.

Speaker #2: Thank you. Good morning. I want to start with a bigger picture question. That's related to interest rates. Now, IA obviously has brought down its interest rate sensitivity over time and intentionally.

Paul Holden: Thank you. Good morning. I want to start with a bigger picture question that's related to interest rates. Putting aside the sensitivities that you give us, I still want to think that higher rates, particularly at the long end of the curve, are beneficial for your business, whether that's through sales, the pricing of new sales and the margins associated with that, or just the earnings on surplus. Maybe you can walk us through sort of what the implications are for your business. Do I have it right that you're still positively impacted by higher rates and how so?

Speaker #2: But putting aside the sensitivities that you give us, I still want to think that higher rates, particularly at the long end of the curve, are beneficial for your business, whether that's through sales the pricing of new sales and the margins associated with that, or just the earnings on surplus.

Speaker #2: Maybe you can walk us through sort of what the implications are for your business. Do I have it right that you're still positively impacted by higher rates and how so?

Speaker #1: Yeah, it's a quite important question, Paul, because the level of interest rate is important. You're absolutely right. We kept seeing that long-term interest rate being higher.

Éric Jobin: Yeah, it's a quite important question, Paul, because the level of interest rate is important. You're absolutely right. We kept seeing that long-term interest rate being higher is positive for us if everything else stays the same. Keep in mind that inverted yield curve a couple of years ago created some headwinds. The level of long-term interest rate is important, the shape of the yield curve is important as well. To maintain this, we need a positive yield curve, meaning short-term rates being lower than long-term rates.

Speaker #1: It's positive for us if everything else stays the same. Keep in mind that the inverted yield curve a couple of years ago created some headwinds.

Speaker #1: So, the level of long-term interest rates is important, but the shape of the yield curve is important as well. So, to maintain this, we need a positive yield curve.

Speaker #1: Meaning short-term rates are lower than long-term rates.

Speaker #2: So, assuming under the current shape of the curve — I think it's a positive. So again, maybe you can kind of walk us through how we should expect that to show in iA's results over time?

Paul Holden: Assuming under the current shape of the curve, I think is a positive. Again, maybe you can kind of walk us through, how should we expect that to show in iA's results over time? Because I don't think it's an overnight impact. Again, maybe whether it's through sales, the margins on those new sales, earnings on surplus, how will we know it is positive?

Speaker #2: Because I don't think it's an overnight impact, but again, maybe—whether it's through sales, the margins on those new sales, earnings on surplus—how will we know it is positive?

Speaker #1: Yeah. In fact, you're right. New sales assuming that prices are not adjusted, then there's no reason to believe the contrary at this point. The market is being very disciplined.

Éric Jobin: Yeah. In fact, you're right. New sales, assuming that prices are not adjusted, and there's no reason to believe the contrary at this point, the market is being very disciplined, there's no pressure on pricing. Of course, if long-term rates are higher than our pricing, it's beneficial to us. That's the most important element. As for the other things, keep in mind that we do our best to wedge our asset and liabilities. We've talked a couple of times about our total portfolio management approach to manage the interest rate risk. We do our best to minimize it, but we still have a small positive variance. If you look at our core earnings sensitivities to long-term interest rate, it's still positive. It means that by reinvesting and lengthening the duration of our portfolio over time, we still win with the overall portfolio management as well.

Speaker #1: So there's no pressure on pricing. So of course, if long-term rates are higher than our pricing, it's beneficial to us. So that's the most important element.

Speaker #1: As for the other things, keep in mind that we do our best to wedge our assets and liabilities. We talked a couple of times about our total portfolio management approach to managing the interest rate risk.

Speaker #1: We do our best to minimize it, but we still have a small positive variance. If you look at our core earnings sensitivities to long-term interest rates, it's still positive.

Speaker #1: So it means that by reinvesting and lengthening the duration of our portfolio over time, we still win with the overall portfolio management as well.

Speaker #2: Okay. Okay. Let me move on. In terms of the U.S. business, you've seen negative insurance experience in each of the last three quarters, and I think from unrelated factors.

Paul Holden: Okay. Let me move on. In terms of the US business, you've seen negative insurance experience in each of the last three quarters, and I think from unrelated factors. You could say it's all different. I guess my question is twofold. Given recent experience, is there anything you see in the results where maybe, in terms of setting actuarial assumptions, a little bit more challenging in the US versus Canada? You have a very long history of being very good at getting the assumptions right in Canada. Is there anything in the US that you think is different? In any way, does that impact the way you think about further capital allocation into the US?

Speaker #2: So you could say it's all different. I guess my question is twofold. Given recent experience, is there anything you see in the results where maybe in terms of setting actuarial assumptions a little bit more challenging in the US versus Canada?

Speaker #2: You have a very long history of being very good at getting the assumptions right in Canada. Is there anything in the U.S. that you think is different?

Speaker #2: And in any way, does that impact the way you think about further capital allocation into the US?

Speaker #1: The short answer is absolutely not, Paul. I don't see any issue. The loss that we experienced in Q2 is completely unrelated to what happened in Q1.

Éric Jobin: The short answer is absolutely not, Paul. I don't see any issue. The loss that we experienced in Q2 is completely unrelated with what happened in Q1. Remember in Q1, it was a lapse issue connected with more green agents than normal. This quarter, it's mortality related, and its first quarter was in American Amicable. Second quarter, it's mortality related at Fidelity Life, and it's just a couple of higher claims that took place. Those are accidents and things like that. It's really not something that worries me with the assumptions at this point with respect to that. There's nothing. On the lapse issue in Q1, we took actions to fix it. When I look at my crystal ball for the remaining of the year, I don't see anything that preoccupies me at this point.

Speaker #1: Remember, in Q1, it was a lapse issue connected with more green agents than normal. This quarter, it's mortality related, and it's a first quarter was in American amicable.

Speaker #1: Second quarter, it's mortality related at Fidelity Life. And it's just a couple of higher claims that took place. And those are accidents and things like that.

Speaker #1: So it's really not something that worries me with the assumptions at this point with respect to that. So there's nothing. And on the lapse issue in Q1, we took actions to fix it.

Speaker #1: So when I look at my crystal ball for the remainder of the year, I don't see anything that preoccupies me at this point.

Speaker #2: And just to add, Eric, on the mortality side, we look at it holistically. So overall, we have a gain. So if there was to be a feel-good about mortality, I mean, for the US overall, it would be positive.

Denis Ricard: Just to add, Éric, on the mortality side, we look at it holistically. Overall, we have a gain. If there was to be something on the reserve change, let's say that we didn't feel good about mortality, I mean, for the US, overall, it would be positive.

Speaker #1: Yeah. Yeah. Denis, you're absolutely right. Across the organization, in the second quarter, mortality overall was positive. So I keep saying that we like mortality risk.

Éric Jobin: Denis, you're absolutely right. Across the organization in the Q2, mortality overall was positive. I keep saying that we like mortality risk. That's something we're really good at managing. We like the underwriting. We like the risk management. We retain some risk with respect to mortality, and we like it, and it's been positive. It's been a positive profitability driver for as long as I can remember at iA. Overall, even across the organization, there's no worry about this risk.

Speaker #1: That's something we're really good at managing. We like the underwriting; we like the risk management. So, we retain some risk with respect to mortality.

Speaker #1: And we like it. And it's been positive. It's been a positive profitability driver for as long as I can remember at IA. So overall, even across the organization, there's no worry about this risk.

Speaker #2: Okay. And then, Denis, obviously, given that answer, it doesn't impact your appetite to deploy more capital into the US?

Paul Holden: Okay. Then, Denis, obviously, given that answer, it doesn't impact appetite to deploy more capital into the US.

Speaker #3: No, it has absolutely no impact.

Denis Ricard: No, it has absolutely no impact.

Speaker #2: No. No. Okay. Okay. That's good. That's it for me. Thank you.

Paul Holden: No. Okay. That's good. That's it from me. Thank you.

Speaker #4: As a reminder, to ask a question, please press star one. The next question is from Mike Rizvanovich from Scotiabank. Please go ahead.

Operator 3: As a reminder, to ask a question, please press star one. The next question is from Mike Rizvanovic from Scotiabank. Please go ahead.

Operator: As a reminder, to ask a question, please press star one. The next question is from Mike Rizvanovic from Scotiabank. Please go ahead.

Speaker #5: Hey, good morning. Just wanted to follow up on the wealth commentary, and just thinking about it in terms of if the market does go into a declining environment—if assets under management are declining. I'm just wondering, I know that you've got a structurally higher profitability level, but what's the torque to the downside, or how sensitive is it to the downside if AUM is to come down?

Mike Rizvanovic: Hey, good morning. Just wanted to follow up on the wealth commentary and just thinking about it from the terms of if the market does go into a declining environment, if assets under management are declining. I'm just wondering, I know that you've got a structurally higher profitability level, but what's the torque to the downside, or how sensitive is it to the downside if AUM is to come down when you think about the composition of your fee-based revenue?

Speaker #5: When you think about the composition of your fee-based revenue.

Speaker #1: Mike you have all the sensitivities in our supplemental information package to help you figure out the scenario you want to consider or look at.

Denis Ricard: Mike, you have all the sensitivities in our supplemental information package to help you figure out the scenario you want to consider or look at. It's all in there.

Speaker #1: It's all in there.

Speaker #5: Okay, fair enough. And then maybe for Denis, just on the buyback strategy—how does your book value impact sort of play into your buybacks?

Mike Rizvanovic: Okay. Fair enough. Maybe for Denis, just on the buyback strategy. How does your book value impact sort of play into your buybacks? You obviously got a very aggressive buyback right now based on your NCIB. I know you care about book value growth. You've been very clear that the long-term outperformance on book value growth has been a big positive for IAG over time. How do you look at it now with respect to current valuation levels?

Speaker #5: And you obviously have a very aggressive buyback right now based on your NCIB. I know you care about book value growth. You've been very clear that the long-term outperformance on book value growth has been a big positive for iA over time.

Speaker #5: How do you look at it now with respect to current valuation levels?

Speaker #1: Yeah. Well, thank you for the question, Mike. In terms of the buyback, there are many criteria that makes us decide whether we go bigger or not.

Denis Ricard: Well, thank you for the question, Mike. In terms of the buyback, there are many criteria that makes us decide whether we go bigger or not. The price is obviously one. Everything else being the same, the higher the price, the lower the amount of buyback we're going to do. Like I said, there are many other factors, our capital position, let's say the alternative uses of capital, market conditions. We don't have an objective or a goal of buying back a certain amount. At the end of the day, we also said that in the past that we don't want to pile up capital, but again, there are many, many factors that justify whether or not we go big or not on the buyback side.

Speaker #1: The price is obviously one. So, I mean, everything else being the same, the higher the price, the lower the amount of buyback we're going to do.

Speaker #1: But like I said, there are many other factors or capital positions that's the alternative uses of capital. Market conditions. And we don't have an objective or a goal of buying back a certain amount at the end of the day, we also said that in the past that we don't want to pile up capital.

Speaker #1: But again, there are many, many factors that justify whether or not we go big or not on the buyback side.

Speaker #5: Okay. That's helpful. Thanks for the color.

Mike Rizvanovic: Okay. That's helpful. Thanks for the color.

Speaker #4: This concludes the question-answer session. I'd like to turn the conference back over to Caroline Drouin for any closing remarks.

Operator 3: This concludes the question and answer session. I'd like to turn the conference back over to Caroline Drouin for any closing remarks.

Operator: This concludes the question and answer session. I'd like to turn the conference back over to Caroline Drouin for any closing remarks.

Speaker #6: Thank you, everyone, for joining us today. Our Q2 earnings release and slides for today's conference call are posted in the Investor Relations section of our website.

Caroline Drouin: Thank you everyone for joining us today. Our Q2 earnings release and slides for today's conference call are posted in the investor relations sections of our website. A recording of this call will be available for 1 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. Note that our 2026 Q3 results are scheduled to be released after market close on Monday, 9 November 2026. Thank you again, and that concludes our call.

Speaker #6: A recording of this call will be available for one week starting this evening, and the archived webcast will be available for 90 days.

Speaker #6: And a transcript will be available on our website in the next week. Note that our 2026 third quarter results are scheduled to be released after market close on Monday, November 9, 2026.

Speaker #6: Thank you again, and that concludes our call.

Operator 3: This brings a close to today's conference call. You may disconnect your lines. Thank you for participating, and have a pleasant day.

Operator: This brings a close to today's conference call. You may disconnect your lines. Thank you for participating, and have a pleasant day.

Q2 2026 iA Financial Corp Inc Earnings Call

Request DemoDemo

iA Financial

Earnings