The company announced Thursday that fourth-quarter earnings for Quebec City-based iA Financial Corporation were unchanged from a year ago.
IA Financial reported net income attributable to common stockholders of $171.9 million for the quarter, up slightly from $171.2 million a year earlier.
Assets under management and administration reached $197.5 billion in the fourth quarter, up 4% year-over-year. Assets increased by 6% during the quarter, attributable to net inflows and market growth, the company said in a release.
Product sales for iA’s wealth management division increased to $247.3 million, up 40% year-over-year. Sales of segregated funds and mutual funds have increased significantly.
Despite strong sales, the wealth management division suffered a loss of $11.2 million. IA paid out more commissions and sales bonuses than it expected. The company also introduced new employee wellness expenses during the pandemic, contributing to the loss.
Strong sales were also recorded in the iA insurance segment, where individual insurance sales increased by 40% year-on-year, thanks in part to the new whole life product launched in June 2020.
“Despite the pandemic and its numerous impacts, iA Financial Group achieved good profitability in 2020,” Jacques Potvin, executive vice president and chief financial officer of iA Financial, said in the release. “We have strengthened our reserves and introduced special additional safeguards in the event of a pandemic without affecting profits.”
