Delivering on financial targets – Strong momentum in wealth management

This news release presents financial information in accordance with IFRS® Accounting Standards (referred to as “IFRS” in this document) and certain non-IFRS and additional financial measures used by the Company when evaluating its results and measuring its performance. For relevant information about non-IFRS financial measures and other specified financial measures used in this document, see the “Non-IFRS and Additional Financial Measures” section in this document and in the Management’s Discussion and Analysis for the period ended March 31, 2026 (the “Q1/2026 Management’s Discussion and Analysis”), which is hereby incorporated by reference and is available for review at sedarplus.ca or on iA Financial Group’s website at ia.ca. The results presented below are for iA Financial Corporation Inc. (“iA Financial Group” or the “Company”).

FIRST QUARTER HIGHLIGHTS

• Core EPS†† of $3.25 (+12% YoY) and trailing-12-month core ROE†† of 17.5%, in line with the 2026 core ROE target1 of 17%+
• EPS of $1.49 (-25% YoY) and trailing-12-month ROE2 of 14.3%
• Record segregated fund gross sales3 of $2.4 billion, and individual insurance policies issued up 5% YoY in Canada
• Good sales and business retention, bringing net premiums,3 premium equivalents and deposits3 to nearly $6.4 billion, up 10% YoY
• Total assets under management3 and assets under administration3 up 31% over the last 12 months to exceed $346 billion
• Solid organic capital generation3 of $155 million in Q1, up from $125 million in Q1 2025, on track to reach the 2026 target of $700+ million1
• Robust capital position emphasized by a 134% solvency ratio4 and capital available for deployment3 of $1.2 billion as at March 31, 2026
• Share buyback program (NCIB) maximum to be increased from 5% of shares outstanding5 to 8% of public float5 (subsequent to the quarter)

QUEBEC CITY--(BUSINESS WIRE)-- For the first quarter ended March 31, 2026, iA Financial Group (TSX: IAG) recorded core diluted earnings per common share (EPS)†† of $3.25, which is 12% higher than the same period in 2025. Core return on common shareholders’ equity (ROE)†† for the trailing 12 months was 17.5%. First quarter net income attributed to common shareholders was $137 million, diluted EPS was $1.49 and ROE for the trailing 12 months was 14.3%. The solvency ratio was 134% as at March 31, 2026, highlighting a robust capital position.

“Solid core earnings growth in the first quarter demonstrates the power of our unique and diversified business model, the depth of our distribution capabilities, and our ability to execute in a dynamic environment,” commented Denis Ricard, President and CEO of iA Financial Group. “Elevated activity on our wealth management and insurance distribution platforms resulted in a 5% increase in individual insurance policies issued, reinforcing our leadership position in Canada. It also resulted in record gross sales in segregated funds and continued solid growth in U.S. individual insurance.”

“We remain focused on financial discipline, profitable growth and sustainable value creation for shareholders,” added Éric Jobin, Executive Vice-President, CFO and Chief Actuary. “We continue to manage expenses effectively while maintaining a robust capital position supported by strong organic capital generation. This strength provides significant flexibility to deploy capital and supports higher capital returns, as reflected by our decision to increase the maximum percentage of shares eligible for repurchase to 8% of public float.”

Earnings Highlights

Unless otherwise indicated, the results presented in this document are in Canadian dollars and are compared with those from the corresponding period last year.

FINANCIAL TARGETS

The table below presents the progress towards achieving the Company’s annual and medium-term financial targets.

ANALYSIS OF EARNINGS BY BUSINESS SEGMENT

The following tables set out the core earnings† and net income attributed to common shareholders by business segment. An analysis of the performance by business segment for the first quarter and a reconciliation between the net income attributed to common shareholders and core earnings† for each business segment are provided in the following pages.

Core Earnings (Losses)†

Net Income (Loss) Attributed to Common Shareholders

Insurance, Canada

• The net income attributed to common shareholders for the Insurance, Canada segment was $88 million, which is 1% higher than $87 million for the same period in 2025. Net income attributed to common shareholders is composed of core earnings† as well as core earnings adjustments.
• Core earnings adjustments to net income totalled $8 million. As explained in the “Reconciliation of Net Income Attributed to Common Shareholders and Core Earnings†” section of this document, these adjustments include a charge resulting from a management action related to the pension plan ($2 million). They also include the amortization of acquisition-related finite life intangible assets ($5 million), the non-core pension expense ($2 million) and a reallocation for reporting consistency, which sum to zero on a consolidated basis ($1 million). These items were partially offset by proceeds from the disposition of a block of business within the Dealer Services business unit ($2 million).
• Core earnings† for this business segment were $96 million for the first quarter compared to $100 million for the same period in 2025. The $4 million decrease in core earnings† reflects the net impact of the following items:
  • Core insurance service result,10 totalling $139 million compared to $137 million a year earlier, driven by:
    • higher combined risk adjustment (RA) release10 and CSM recognized for services provided10 from Individual Insurance
    • higher expected earnings on PAA insurance,10 mainly from iA Auto and Home
      and partially offset by:
    • higher impact of new insurance business,10 composed of confirmed renewals and sales in Employee Plans
    • core insurance experience losses10 of $3 million, mainly reflecting unfavourable morbidity experience, compared to core insurance experience gains of $4 million for the same period in 2025
  • Core non-insurance activities,10 totalling $13 million for the quarter compared to $15 million a year earlier, mainly due to higher expenses
  • Core other expenses10 of $16 million for the quarter compared to $15 million a year earlier
  • Core income taxes of $40 million for the quarter compared to $37 million a year earlier

Wealth Management

• The net income attributed to common shareholders for the Wealth Management segment was $114 million, which is 20% higher than $95 million for the same period in 2025. Net income attributed to common shareholders is composed of core earnings† as well as core earnings adjustments.
• Core earnings adjustments to net income totalled $17 million. As explained in the “Reconciliation of Net Income Attributed to Common Shareholders and Core Earnings†” section of this document, these adjustments include a charge resulting from a management action related to the pension plan ($1 million). They also include acquisition-related items ($14 million), the non-core pension expense ($1 million) and a tax-related item (true-up) from RF Capital Group for periods prior to the acquisition ($1 million).
• Core earnings† for this business segment were $131 million for the first quarter compared with $106 million a year ago. The 24% increase in core earnings† over the same period in 2025 is mainly the result of the higher combined RA release and CSM recognized for services provided due to strong net segregated fund sales and the impact of favourable financial markets over the last 12 months. Additionally, core non-insurance activities were higher, reflecting higher net revenue on assets and the strong contribution from RF Capital Group of more than $10 million. Growth of non-insurance activities was tempered by higher expenses, mainly related to IT projects, and an expense reallocation from core other expenses.

US Operations

• The net income attributed to common shareholders for the US Operations segment was $16 million, compared to $19 million for the same period in 2025. Net income attributed to common shareholders is composed of core earnings† as well as core earnings adjustments.
• Core earnings adjustments to net income totalled $10 million from acquisition-related items ($8 million) and specified items ($2 million), mostly consisting of a reallocation for reporting consistency, which sum to zero on a consolidated basis.
• Core earnings† for this business segment were $26 million, which compares to $30 million for the same period in 2025. Expected insurance earnings10 were higher due to the increase in the combined RA release and CSM recognized for services provided, mainly driven by good business growth in Individual Insurance in the last 12 months, and higher expected earnings on PAA insurance business from Dealer Services. Core insurance experience was unfavourable ($9 million before taxes), mainly due to unfavourable policyholder behaviour in Individual Insurance. In addition, core non-insurance activities were lower, reflecting a sales mix in US Dealer Services weighted toward insurance products.
  
  In the first quarter, the contribution of Vericity (Fidelity Life and eFinancial) continued to support progress toward financial expectations set at the time of the acquisition.

Investment

• A net loss attributed to common shareholders of $28 million was recorded in the first quarter compared to net income attributed to common shareholders of $35 million for the same period in 2025. The net loss attributed to common shareholders is composed of core earnings† as well as core earnings adjustments.
• Core earnings adjustments reflected a net negative impact on net loss of $121 million as a result of the following items:
  • Market-related impacts that differ from management’s expectations, which resulted in an $87 million decrease in net income. This adjustment is explained by the unfavourable impacts from public and private equity and infrastructure variations ($87 million); investment properties ($10 million), mainly driven by market value adjustments; and the impact of the CIF11 ($8 million). These negative items were partially offset by the favourable impact of interest rate and credit spread variations ($18 million).
  • The positive impact of assumption changes of $6 million resulting from the update of credit assumptions used to develop the interest rate scale (this is a recurring assumption update specific to the Investment segment and is expected to be carried out in the first quarter of each year).
  • Specified items resulting in a $40 million decrease in net income consisting of a tax-related adjustment for the 2025 fiscal year, as detailed in the “Income taxes” paragraph of this document.
• Core earnings† for this business segment were $93 million, which is 9% higher than $85 million for the same period in 2025. Before accounting for taxes, financing charges on debentures and dividends, core earnings† were driven by a core net investment result12 of $126 million. This result compares with $124 million recorded a year earlier and $127 million the previous quarter. The core net investment result is composed of expected investment earnings12 and credit experience.12
  • Expected investment earnings quarter-over-quarter analysis – $119 million in the first quarter compared to $124 million in the fourth quarter of 2025. This result mainly reflects the impact of a reduction in assets following the acquisition of RF Capital Group, and, to a lesser extent, the impact of share repurchases (NCIB). The decrease is also explained by the lower contribution of iA Auto Finance due to normal seasonality in the first quarter.
  • Expected investment earnings year-over-year analysis – $119 million in the first quarter compared to $123 million a year earlier. This result mainly reflects the impact of a reduction in assets following the acquisition of RF Capital Group, and, to a lesser extent, the impact of share repurchases (NCIB), partially offset by the favourable impact of macroeconomic variations, in part due to the steepening of the yield curve.
  • Credit experience – Favourable credit experience resulted in a $7 million gain for the quarter due to positive credit experience of $8 million in the car loans portfolio of iA Auto Finance and net negative credit experience of $1 million in the fixed income portfolio.

Corporate

• Net loss attributed to common shareholders for the Corporate segment was $53 million compared to $50 million for the same period in 2025. This item is composed of core losses† as well as core loss adjustments.
• Core losses adjustments to net loss for this business segment totalled $5 million. As explained in the “Reconciliation of Net Income Attributed to Common Shareholders and Core Earnings†” section of this document, these adjustments include a charge resulting from a management action related to the pension plan ($1 million). They also include charges related to the integration of Vericity (Fidelity Life and eFinancial), Global Warranty and RF Capital Group (collectively, $3 million), and the non-core pension expense ($1 million).
• This segment recorded core losses† from after-tax expenses of $48 million, similar to the first quarter of 2025. The stability of these expenses reflects disciplined expense management amid inflationary pressures, supported by a strong, ongoing focus on operational efficiency and investments to enhance IT infrastructure performance. Before taxes, corporate core other expenses were $65 million, the same as in the first quarter of 2025. These expenses for the quarter reflect the lower-than-expected provision for variable compensation and the timing of certain corporate initiatives, resulting in a temporary deferral of related expenses. As a result, Corporate core other expenses for the quarter were at the lower end of the Company’s target range of $70 million plus or minus $5 million.13

RECONCILIATION OF NET INCOME ATTRIBUTED TO COMMON SHAREHOLDERS AND CORE EARNINGS†

Core earnings† of $298 million in the first quarter are derived from net income attributed to common shareholders of $137 million, after applying a total adjustment of $161 million (post tax) for:

• Market-related impacts that differ from management’s expectations, which resulted in an $87 million decrease in net income. This adjustment is explained by the unfavourable impacts from public and private equity and infrastructure variations ($87 million); investment properties ($10 million), mainly driven by market value adjustments; and the impact of the CIF14 ($8 million). These negative items were partially offset by the favourable impact of interest rate and credit spread variations ($18 million).
• The impact of assumption changes and management actions, leading to a $2 million increase in net income. This adjustment results from the positive update of credit assumptions used to develop the interest rate scale ($6 million) (this is a recurring assumption update related to the Investment segment and is expected to be carried out in the first quarter of each year), partially offset by a charge ($4 million) resulting from a management action related to the pension plan, as disclosed in the second quarter results of 2025.15
• A net charge of $3 million related to the acquisition and integration of RF Capital Group and the integration of Vericity (Fidelity Life and eFinancial) and Global Warranty (which together result in total charges of $5 million), partially offset by proceeds from the disposition of a block of business within the Canadian Dealer Services business unit ($2 million).
• Expenses associated with acquisition-related intangible assets of $25 million.
• The impact of the non-core pension expense of $4 million.
• Specified items resulting in a $44 million decrease in net income. This adjustment consists primarily of a $40 million tax-related adjustment attributable to the 2025 fiscal year, as detailed in the “Income taxes” paragraph of this document. It also includes a tax-related item (true-up) from RF Capital Group for periods prior to the acquisition ($1 million), as well as other small adjustments.

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

Contractual service margin (CSM)16

During the first quarter, the CSM increased organically by $136 million. This increase is due to the positive impact of new insurance business of $202 million, organic financial growth of $114 million and net insurance experience gains of $39 million, partly offset by the CSM recognized for services provided in earnings of $219 million, up 12% from a year earlier. Non-organic items led to a decrease in the CSM of $77 million during the first quarter, mostly due to the impact of market variations. As a result, the total CSM increased by $59 million (+1%) during the quarter to stand at $7,709 million as at March 31, 2026, an increase of 11% over the last 12 months.

Income taxes

The federal government released its budget on November 4, 2025, outlining its intended tax policy directions. Pursuant to this budget, Bill C-15 was enacted on March 26, 2026, implementing certain measures, including some that apply retroactively to January 1, 2025.

Consequently, the results for first quarter 2026 reflect an increase in the core effective tax rate, as well as a $40 million adjustment recorded for the impact on existing tax positions following the adoption of the new tax measures, which took effect January 1, 2025. The $40 million core earnings adjustment consists of $20.5 million in core income tax for fiscal 2025 and a $19.5 million core earnings adjustment for an income tax gain recognized in 2025. In accordance with IFRS, specifically IAS 12 Income Taxes, this adjustment is recognized in the period of legislative adoption and does not constitute a retroactive restatement or an adjustment to prior periods.

The Company has revised its medium-term core effective tax rate†† outlook to a range of 21% to 23%,17 with expectations for 2026 positioned toward the upper end of the range. This change reflects the tax policy directions outlined in the November 2025 federal budget, including the impact of Bill C-15.

Business growth

Sales and business retention contributed to the strong growth in net premiums, premium equivalents and deposits, which reached nearly $6.4 billion, a 10% increase compared to the same period last year. Total assets under management and assets under administration exceeded $346 billion, an increase of 31% over the last 12 months. In Canada, Individual Insurance sales were good, at $97 million, and the Company maintained its leading position in the market, with the number of policies sold18 increasing by 5% year over year. Dealer Services and iA Auto and Home both recorded good sales growth compared to the first quarter of 2025. In the Individual Wealth Management segment, total gross sales reached a quarterly record of more than $3.7 billion and total net segregated and mutual fund inflows reached nearly $1.4 billion. The Company continued to rank first for both gross and net individual segregated fund sales.19 In the U.S., Individual Insurance sales recorded a notable year-over-year increase and Dealer Services sales reflected lower vehicle sales across the industry.

INSURANCE, CANADA

• In Individual Insurance, first quarter sales totalled $97 million, a result comparable to last year’s strong performance, while distribution activity remained robust with a 5% increase in the number of policies issued compared to the same period last year. The Company maintained its leading position in the Canadian market for number of policies issued.18 This result reflects the strength of all our distribution networks, the excellent performance of our digital tools, as well as our comprehensive and distinctive range of products.
• In Group Insurance, net premiums, premium equivalents and deposits for Employee Plans increased by 3% year over year, mainly benefitting from good sales in the last 12 months. First quarter implemented sales in Employee Plans totalled $8 million compared to $70 million in the same quarter last year, which included one large contract. Note that sales in this business unit vary considerably from one quarter to another based on the size of the contracts sold. Special Markets sales reached $104 million compared to $108 million in the same quarter a year earlier, reflecting continued softness in international student medical insurance, which remains low following federal government measures to cap the number of international students entering Canada.
• For Dealer Services, total sales ended the first quarter at $174 million, which is 7% higher than the same period in 2025. This growth was supported by an 11% year-over-year increase in P&C Insurance sales, primarily from extended warranties.
• At iA Auto and Home, direct written premiums reached $137 million in the first quarter, an increase of 6% from a year earlier. This was due to an increased number of policies and the impact of price adjustments in the last 12 months.

WEALTH MANAGEMENT

• In Individual Wealth Management, total gross sales reached a quarterly record of more than $3.7 billion. Sales of segregated and mutual funds were strong during the first quarter, with segregated fund gross sales totalling nearly $2.4 billion, a 23% year-over-year increase, and mutual fund gross sales of $838 million, a year-over-year increase of 30%. Combined net inflows of segregated and mutual funds totalled nearly $1.4 billion in the first quarter, compared to $1.1 billion in the same quarter last year. Segregated funds contributed close to $1.5 billion, maintaining their strong momentum, while mutual funds recorded net outflows of $90 million. The Company continued to rank first in Canada in gross and net segregated fund sales.20 This robust performance was notably driven by the strength of our distribution networks and our competitive and comprehensive product lineup. Additionally, in the current volatile market, safer products are appealing to certain investors and, as a result, sales of other savings products reached $494 million in the first quarter compared to $467 million a year earlier. As a result of net inflows, market growth in the last 12 months, and the addition of assets under administration from the RF Capital Group acquisition, Individual Wealth Management total assets under administration and assets under management reached $261 billion at the end of the quarter, a 41% increase year over year.
• Group Savings and Retirement sales for the first quarter totalled $704 million compared to $841 million a year earlier. Sales growth for insured annuities was positive but more than offset by lower accumulation product sales. Total assets under management at the end of the quarter were 10% higher than a year earlier.

US OPERATIONS

• In Individual Insurance, sales of US$79 million in the first quarter were 16% higher than the same period a year earlier, driven by growth in the final expense and middle market segments, supported by solid distribution relationships. This result highlights the underlying demand in the U.S. life insurance market, with ongoing focus on profitable growth.
• In Dealer Services, first quarter sales totalled US$273 million, compared with a strong US$306 million in the same quarter last year. This year’s result reflects a general slowdown in industry-wide car sales, whereas the previous year’s result benefitted from a significant pull‑forward of volumes into the first quarter of 2025 as potential vehicle price increases were expected.

ASSETS UNDER MANAGEMENT AND ASSETS UNDER ADMINISTRATION

Total assets under management and assets under administration amounted to more than $346 billion as at March 31, 2026, recording an increase of 31% over the last 12 months. This solid growth was mainly driven by the performance of financial markets, strong net fund inflows, particularly for segregated funds, and the addition of assets under administration from the RF Capital Group acquisition completed on October 31, 2025. The Company maintained its position as the Canadian leader in segregated fund assets under management.20

NET PREMIUMS, PREMIUM EQUIVALENTS AND DEPOSITS

Net premiums, premium equivalents and deposits amounted to nearly $6.4 billion in the first quarter, which is 10% higher than the same period last year. This performance was mainly driven by the results of Individual Wealth Management, with almost all other business units also delivering good growth.

FINANCIAL POSITION

The Company’s solvency ratio21 was 134% as at March 31, 2026, comparable to 133% at the end of the previous quarter and 132% a year earlier. This result is well above the regulatory minimum ratio of 90%. The one-percentage-point increase during the quarter was driven by the favourable contribution of organic capital generation and by the positive impact of the 2026 AMF-revised CARLI guideline on excess capital recognition for property and casualty subsidiaries. These favourable items were partially offset by the impacts of share buybacks (NCIB) and macroeconomic variations. The Company’s financial leverage ratio†† was 16.4% as at March 31, 2026, which compares to 16.3% at the end of the previous quarter.

Organic capital generation

The Company organically generated $155 million in additional capital during the first quarter compared to $125 million for the same period in 2025. This solid result is in line with projections to meet the annual target of at least $700 million in 2026,22 with organic generation typically strengthening from the second quarter onwards due to seasonality.

Capital available for deployment

As at March 31, 2026, the capital available for deployment was assessed at $1.2 billion, compared to $1.1 billion at the end of the previous quarter.

Book value

The book value per common share23 was $78.90 as at March 31, 2026, compared to $79.24 as at December 31, 2025 and $74.62 as at March 31, 2025. During the last 12 months, it increased by 6%, reflecting higher retained earnings, partly offset by the impact of the share buybacks (NCIB) and dividend payments to common shareholders.

Normal Course Issuer Bid (NCIB)

During the first quarter, the Company repurchased and cancelled a total of 1,646,356 outstanding common shares for a total value of $261 million. From the beginning of the current NCIB and up to March 31, 2026, the Company repurchased and cancelled 2,053,331 shares, or 2.2% of the outstanding shares. On May 5, 2026, with the approval of the Toronto Stock Exchange and the Autorité des marchés financiers, the Board of Directors authorized the Company to amend its current normal course issuer bid in order to increase the maximum number of common shares that may be repurchased for cancellation thereunder from 4,607,178 common shares, representing approximately 5% of the Company’s 92,143,563 common shares issued and outstanding as at October 31, 2025, to 7,371,485 common shares, representing approximately 8% of the 92,035,190 common shares that constituted the Company’s public float as at October 31, 2025. No other terms of the normal course issuer bid have been amended.

Dividend

The Company paid a quarterly dividend of $0.9900 per share to common shareholders in the first quarter of 2026. The Board of Directors approved a quarterly dividend of $1.1000 per share payable during the second quarter of 2026, an increase of $0.11 per share or 11% compared to the dividend paid in the previous quarter. This dividend is payable on June 15, 2026 to the common shareholders of record as at May 15, 2026. The core dividend payout ratio†† was 30% in the first quarter, in the middle of the target range of 25% to 35%.24 In addition, the Board of Directors approved a semi-annual dividend of $32.1750 per Non‑Cumulative 5-Year Rate Reset Class A Preferred Shares Series C.25 This dividend is payable on June 30, 2026, to the preferred shareholders of record at the close of business on June 5, 2026.

Dividend Reinvestment and Share Purchase Plan

Registered common shareholders wishing to enrol in iA Financial Group’s Dividend Reinvestment and Share Purchase Plan (DRIP) so as to be eligible to reinvest the next dividend payable on June 15, 2026 must ensure that the duly completed form is delivered to Computershare no later than 4:00 p.m. on May 8, 2026. Enrolment information is provided on iA Financial Group’s website at ia.ca, under About iA, in the Investor Relations/Dividends section. Common shares issued under iA Financial Group’s DRIP will be purchased on the secondary market and no discount will be applicable.

Advisory team joins iA Private Wealth from a major bank-owned brokerage firm

On February 19, 2026, iA Financial Group announced that a distinguished advisory team managing over $1.5 billion in client assets had joined iA Private Wealth, significantly strengthening its presence in Western Canada. Formerly known as Miazga Koroluk, the team will now operate as First Growth Multi-Family Office, bringing considerable expertise and a solid client-focused reputation. This addition supports iA Financial Group’s growth strategy and underscores the strength of its wealth platform.

Leadership appointment at Richardson Wealth

On March 10, 2026, iA Financial Group announced the appointment of Julie Gallagher as President and Chief Executive Officer (CEO) of Richardson Wealth, effective immediately. A seasoned financial services leader, she will provide strategic direction and vision, drive growth and profitability, and continue to strengthen support for advisory teams. Outgoing CEO Dave Kelly will remain involved as Vice‑Chair until the end of June to help during the transition period and will continue to serve as a Board member thereafter.

Credit ratings

During the first quarter, S&P Global and DBRS Morningstar confirmed all ratings for iA Financial Corporation and its related entities, including Industrial Alliance Insurance and Financial Services Inc., with a stable outlook.

Recognition

iA Financial Group ranked first among Canada’s largest publicly traded insurers in Forbes’ 2026 Best Employers list, reflecting strong employee feedback and a solid workplace culture. In 2025, Forbes also named the Company as Canada’s best auto insurance provider.

Philanthropy

On January 21, 2026, iA Financial Group announced a $200,000 donation to the Fondation IUCPQ to support the launch of HARMONY, a research project aiming to transform obesity management by combining medical treatment, nutrition and physical activity.

On March 19, 2026, iA Financial Group announced a $1 million donation to SickKids Foundation, distributed over the next ten years, to support the SickKids AI (SKAI) program focused on advancing responsible artificial intelligence in pediatric health care.

Subsequent to the first quarter:

Life Insurance Digital Transformation – On April 8, 2026, iA Financial Group announced a key milestone in the modernization of individual life insurance in Canada with the integration of term and permanent life insurance sales into its enhanced digital experience. Approximately 50% of new life insurance sales are now completed through a fully digital end‑to‑end process, simplifying iA Financial Group’s operations, improving productivity, and delivering a smoother human‑digital experience for advisors and clients.

NON-IFRS AND ADDITIONAL FINANCIAL MEASURES

iA Financial Corporation reports its financial results and statements in accordance with IFRS® Accounting Standards. The Company also publishes certain financial measures or ratios that are not presented in accordance with IFRS. The Company uses non-IFRS and other financial measures when evaluating its results and measuring its performance. The Company believes that such measures provide additional information to better understand its financial results and assess its growth and earnings potential, and that they facilitate comparison of the quarterly and full year results of the Company’s ongoing operations. Since such non-IFRS and other financial measures do not have standardized definitions and meaning, they may differ from similar measures used by other institutions and should not be viewed as an alternative to measures of financial performance, financial position or cash flow determined in accordance with IFRS. The Company strongly encourages investors to review its financial statements and other publicly filed reports in their entirety and not to rely on any single financial measure.

Non-IFRS financial measures include core earnings (losses).

Non-IFRS ratios include core earnings per common share (core EPS); core return on common shareholders’ equity (core ROE); core effective tax rate; core dividend payout ratio; and financial leverage ratio.

Supplementary financial measures include return on common shareholders’ equity (ROE); components of the CSM movement analysis (organic CSM movement, impact of new insurance business, organic financial growth, insurance experience gains (losses), impact of changes in assumptions and management actions, impact of markets, currency impact); components of the drivers of earnings (in respect of both net income attributed to common shareholders and core earnings); assets under management; assets under administration; capital available for deployment; dividend payout ratio; total payout ratio (trailing 12 months); organic capital generation (net of dividends); sales; net premiums; and premium equivalents and deposits.

For relevant information about non-IFRS measures, see the “Non-IFRS and Additional Financial Measures” section in the Management’s Discussion and Analysis (MD&A) for the period ending March 31, 2026, which is hereby incorporated by reference and is available for review on SEDAR+ at sedarplus.ca or on iA Financial Group’s website at ia.ca.

A reconciliation of net income attributed to common shareholders to core earnings by business segment is included below. For a reconciliation on a consolidated basis, see the “Reconciliation of Net Income Attributed to Common Shareholders and Core Earnings” section above.

Reconciliation of Select Non-IFRS Financial Measures

Net Income and Core Earnings† Reconciliation – Insurance, Canada

Net Income and Core Earnings† Reconciliation – Wealth Management

Net Income and Core Earnings† Reconciliation – US Operations

Net Income and Core Earnings† Reconciliation – Investment

Net Income and Core Earnings† Reconciliation – Corporate

Reconciliation of Core Earnings† to Net Income Attributed to Common Shareholders According to the DOE – Consolidated

Forward-Looking Statements

This document may contain statements that are predictive or otherwise forward-looking in nature, that depend upon or refer to future events or conditions, or that include words such as “may”, “will”, “could”, “should”, “would”, “suspect”, “expect”, “anticipate”, “intend”, “plan”, “believe”, “estimate”, and “continue” (or the negative thereof), as well as words such as “financial targets”, “objective”, “goal”, “guidance”, “outlook” and “forecast”, or other similar words or expressions. Such statements constitute forward-looking statements within the meaning of securities laws. In this document, forward-looking statements include, but are not limited to, information concerning possible or future operating results, strategies, and financial and operational outlooks. These statements are not historical facts; they represent only expectations, estimates and projections regarding future events and are subject to change.

Although iA Financial Group believes that the expectations reflected in such forward-looking statements are reasonable, such statements involve risks and uncertainties, and undue reliance should not be placed on such statements. In addition, certain material factors or assumptions are applied in making forward-looking statements, and actual results may differ materially from those expressed or implied in such statements.

• Material factors and risks that could cause actual results to differ materially from expectations include, but are not limited to: general business and economic conditions; level of competition and consolidation and ability to adapt products and services to market or customer changes; information technology, data protection, governance and management, including privacy breach, and information security risks, including cyber risks; level of inflation; performance and volatility of equity markets; interest rate fluctuations; hedging strategy risks; accuracy of information received from counterparties and the ability of counterparties to meet their obligations; unexpected changes in pricing or reserving assumptions; iA Financial Group liquidity risk, including the availability of funding to meet financial liabilities at expected maturity dates; mismanagement or dependence on third-party relationships in a supply chain context; ability to attract, develop and retain key employees; risk of inappropriate design, implementation or use of complex models, including artificial intelligence; fraud risk; changes in laws and regulations, including tax laws; contractual and legal disputes; actions by regulatory authorities that may affect the business or operations of iA Financial Group or its business partners; changes made to capital and liquidity guidelines (or variations or withdrawals in respect of anticipated changes); risks associated with the regional or global political and social environment; geopolitical and trade uncertainty; climate-related risks including extreme weather events or longer-term climate changes and the transition to a low-carbon economy; iA Financial Group’s ability to meet stakeholder expectations on environmental, social and governance matters; the occurrence of natural or man-made disasters, international conflicts, pandemic diseases (such as the COVID-19 pandemic) and acts of terrorism; and downgrades in the financial strength or credit ratings of iA Financial Group or its subsidiaries.
• Material factors and assumptions used in the preparation of financial outlooks include, but are not limited to: accuracy of estimates, assumptions and judgments under applicable accounting policies, and no material change in accounting standards and policies applicable to the Company; no material variation in interest rates; no significant changes to the Company’s effective tax rate; no material changes in the level of the Company’s regulatory capital requirements; availability of options for deployment of excess capital; credit experience, mortality, morbidity, longevity and policyholder behaviour being in line with actuarial experience studies; investment returns being in line with the Company’s expectations and consistent with historical trends; different business growth rates per business unit; no unexpected changes in the economic, competitive, insurance, legal or regulatory environment or actions by regulatory authorities that could have a material impact on the business or operations of iA Financial Group or its business partners; no unexpected change in the number of shares outstanding; and the non‑materialization of risks or other factors mentioned or discussed elsewhere in this document or found in the “Risk Management” section of the Company’s Management’s Discussion and Analysis for 2025 that could influence the Company’s performance or results.

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

Additional information about the material factors that could cause actual results to differ materially from expectations and about material factors or assumptions applied in making forward-looking statements may be found in the “Risk Management” section of the Management’s Discussion and Analysis for 2025, the “Management of Financial Risks Associated with Financial Instruments and Insurance Contracts” note to the audited consolidated financial statements for the year ended December 31, 2025, and elsewhere in iA Financial Group’s filings with the Canadian Securities Administrators, which are available for review at sedarplus.ca.

The forward-looking statements and outlooks in this document reflect iA Financial Group’s expectations as of the date of this document. iA Financial Group does not undertake to update or release any revisions to these forward‑looking statements to reflect events or circumstances after the date of this document or to reflect the occurrence of unanticipated events, except as required by law. Forward-looking statements are presented in this document for the purpose of assisting investors and others in understanding certain key elements of the Company’s expected financial results, as well as the Company’s objectives, strategic priorities and business outlook, and in obtaining a better understanding of the Company’s anticipated operating environment. Readers are cautioned that such information may not be appropriate for other purposes.

GENERAL INFORMATION

Documents Related to the Financial Results

For a detailed discussion of iA Financial Group’s first quarter results, investors are invited to consult the Management’s Discussion and Analysis for the quarter ended March 31, 2026, the related financial statements and accompanying notes and the Supplemental Information Package, all of which are available on the iA Financial Group website at ia.ca under About iA, in the Investor Relations/Financial Reports section. The Management's Discussion and Analysis and the Company’s financial statements are also available on SEDAR+ at sedarplus.ca.

CONFERENCE CALL

Management will hold a conference call to present iA Financial Group’s first quarter results on Wednesday, May 6, 2026 at 9:30 a.m. (ET). To listen to the conference call, choose one of the options below:

• Live Webcast: Click here (https://www.gowebcasting.com/14646) or visit the iA Financial Group website at ia.ca and go to About iA/Investor Relations/Events and Presentations.
• By phone: Click here (https://dpregister.com/sreg/10204612/1006061ebc4) to register and receive a dial-in number to connect instantly to the conference call. You can also dial 1-833-752-4884 (toll-free in North America) or 1-647-849-3374 (International) fifteen minutes before the conference call is scheduled to take place and an operator will connect you.

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

ANNUAL MEETING

iA Financial Corporation is holding its Annual Meeting in hybrid format at 2:00 p.m. (ET) on Thursday, May 7, 2026, in person and online at the following web address: https://www.icastpro.ca/fia260507. A webcast of the meeting as well as a copy of management’s presentation will be available on the Company’s website at ia.ca under About iA, in the Investor Relations/Events and Presentations section.

ABOUT iA FINANCIAL GROUP

iA Financial Group is one of the largest insurance and wealth management groups in Canada, with operations in the United States. Founded in 1892, it is an important Canadian public company and is listed on the Toronto Stock Exchange under the ticker symbol IAG (common shares).

ia.ca

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

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Investor Relations

Caroline Drouin

Office: 418-684-5000, ext. 103281

Email: [email protected]



Public Affairs

Chantal Corbeil

Office: 514-247-0465

Email: [email protected]

Source: iA Financial Group