IA Financial : Consolidated Financial Statements at March 31, 2026 and 2025 (q1 2026 financial statements)

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Published on 05/05/2026
at 06:38 pm EDT – Modified on 05/05/2026
at 06:53 pm EDT

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iA Financial Corporation Inc.

Interim Condensed Consolidated Financial Statements

For the first quarter of 2026

As at March 31, 2026 and 2025

‌Table of Contents
Consolidated Income Statements…………………………………………………………………………………………………………………………………. 2
Consolidated Comprehensive Income Statements ………………………………………………………………………………………………………….. 3
Consolidated Statements of Financial Position………………………………………………………………………………………………………………. 4
Consolidated Equity Statements ………………………………………………………………………………………………………………………………….. 5
Consolidated Cash Flows Statements…………………………………………………………………………………………………………………………… 6
Notes to Interim Condensed Consolidated Financial Statements ………………………………………………………………………………………. 7

› General Information …………………………………………………………………………………………………………………………………………………………… 7
› Changes in Accounting Policies ……………………………………………………………………………………………………………………………………………. 7
› Investments and Net Investment Income ………………………………………………………………………………………………………………………………… 8
› Fair Value of Financial Instruments and Investment Properties 10
› Management of Financial Risks Associated with Financial Instruments and Insurance Contracts 14
› Derivative Financial Instruments 16
› Segregated Funds Net Assets 18
› Insurance Contracts and Reinsurance Contracts 19
› Common Shares 22
› Preferred Shares and Other Equity Instruments 22
› Capital Management 23
› Income Taxes 23
› Segmented Information 24
› Earnings Per Common Share 25
› Commitments 26
› Event After the Reporting Period 26
› Comparative Figures 26

‌Consolidated Income Statements‌

Three months ended March 31

(unaudited, in millions of Canadian dollars, unless otherwise indicated)

2026

2025

Insurance service result

Insurance revenue (Note 8)

$ 2,016

$ 1,826

Insurance service expenses

(1,622)

(1,465)

Net income (expenses) from reinsurance contracts

(89)

(80)

305

281

Net investment result

Net investment income (Note 3)

Interest and other investment income

574

549

Change in fair value of investments

(662)

(86)

(88)

463

Finance income (expenses) from insurance contracts

196

(366)

Finance income (expenses) from reinsurance contracts

(Increase) decrease in investment contract liabilities and interest on deposits

(23)

(41)

100

106

Investment income (expenses) from segregated funds net assets

(116)

Finance income (expenses) related to segregated funds liabilities

(87)

116

–

100

106

Other revenues

628

487

Other operating expenses

(769)

(615)

Other financing charges

(17)

(18)

Income before income taxes

247

241

Income tax (expense) recovery (Note 12)

(101)

(46)

Net income

146

195

Dividends on preferred shares and distributions on other equity instruments (Note 10)

(9)

Net income attributed to common shareholders

$ 137

$ 186

Earnings per common share (in dollars) (Note 14)

Basic

$ 1.50

$ 1.99

Diluted

1.49

1.98

Weighted average number of shares outstanding (in millions of units) (Note 14)

Basic

Diluted

Dividends per common share (in dollars) (Note 9)

0.99

0.90

The accompanying notes are an integral part of these Interim Condensed Consolidated Financial Statements.

‌Consolidated Comprehensive Income Statements‌

Three months ended March 31

(unaudited, in millions of Canadian dollars)

2026

2025

Net income

$ 146

$ 195

Other comprehensive income, net of income taxes

Items that may be reclassified subsequently to net income:

Net investment hedge

Unrealized gains (losses) on currency translation in foreign operations

131

Hedges of net investment in foreign operations

(94)

(1)

Items that will not be reclassified subsequently to net income:

Remeasurement of post-employment benefits

Total other comprehensive income

Comprehensive income attributed to shareholders

$ 205

$ 213

Income Taxes Included in Other Comprehensive Income

Three months ended March 31

(unaudited, in millions of Canadian dollars)

2026

2025

Income tax recovery (expense) related to:

Items that may be reclassified subsequently to net income:

Hedges of net investment in foreign operations

$ 17

$ –

Items that will not be reclassified subsequently to net income:

Remeasurement of post-employment benefits

(9)

(6)

Total income tax recovery (expense) included in other comprehensive income

$ 8

$ (6)

The accompanying notes are an integral part of these Interim Condensed Consolidated Financial Statements.

‌Consolidated Statements of Financial Position‌

As at March 31

As at December 31

2026

2025

(in millions of Canadian dollars)

(unaudited)

Assets

Investments (Note 3)

Cash and short-term investments

$ 2,208

$ 2,262

Bonds

30,337

31,080

Stocks

7,390

6,504

Loans

3,723

3,687

Derivative financial instruments (Note 6)

814

926

Other investments

119

Investment properties

1,422

1,446

46,013

46,024

Other assets

7,031

5,185

Insurance contract assets (Note 8)

Reinsurance contract assets (Note 8)

3,335

3,287

Fixed assets

342

333

Deferred income tax assets

813

775

Intangible assets

2,279

2,278

Goodwill

1,814

1,799

General fund assets

61,702

59,761

Segregated funds net assets (Note 7)

64,150

63,047

Total assets

$ 125,852

$ 122,808

Liabilities

Insurance contract liabilities (Note 8)

$ 36,883

$ 37,317

Reinsurance contract liabilities (Note 8)

–

Investment contract liabilities and deposits

8,094

7,620

Derivative financial instruments (Note 6)

859

734

Other liabilities

5,857

3,936

Deferred income tax liabilities

401

392

Debentures

1,497

1,496

General fund liabilities

53,593

51,495

Insurance contract liabilities related to segregated funds (Note 8)

47,550

46,365

Investment contract liabilities related to segregated funds

16,600

16,682

Total liabilities

$ 117,743

$ 114,542

Equity

Common shares and contributed surplus

$ 1,506

$ 1,530

Preferred shares and other equity instruments (Note 10)

1,000

Retained earnings and accumulated other comprehensive income

5,603

5,736

8,109

8,266

Total liabilities and equity

$ 125,852

$ 122,808

The accompanying notes are an integral part of these Interim Condensed Consolidated Financial Statements.

‌Consolidated Equity Statements‌

Preferred shares

As at March 31, 2026

Accumulated

other

Common shares

and other equity instruments

Contributed

surplus

Retained earnings

comprehensive

income Total

(unaudited, in millions of Canadian dollars) (Note 9) (Note 10)

Balance as at December 31, 2024

$ 1,524

$ 600

$ 16

$ 5,253

$ 74

$ 7,467

Net income

–

1,096

–

1,096

Other comprehensive income

–

(23)

Comprehensive income for the year

–

1,096

(23)

1,073

Equity transactions

Transfer of post-employment benefits

–

(47)

–

Stock option plan

–

Stock options exercised

–

(4)

–

(4)

Issuance of common shares

–

Redemption of common shares

(32)

–

(267)

–

(299)

Issuance of preferred shares

–

400

–

(4)

–

396

Dividends on common shares

–

(350)

–

(350)

Dividends on preferred shares and distributions

on other equity instruments

–

(43)

–

(43)

(10)

400

–

(617)

(47)

(274)

Balance as at December 31, 2025

1,514

1,000

5,732

8,266

Net income

–

146

–

146

Other comprehensive income

–

Comprehensive income for the period

–

146

205

Equity transactions

Transfer of post-employment benefits

–

(22)

–

Stock option plan

–

Issuance of common shares

–

Redemption of common shares

(27)

–

(239)

–

(266)

Dividends on common shares

–

(90)

–

(90)

Dividends on preferred shares and distributions on

other equity instruments

–

(9)

–

(9)

(25)

–

(316)

(22)

(362)

Balance as at March 31, 2026

$ 1,489

$ 1,000

$ 17

$ 5,562

$ 41

$ 8,109

The accompanying notes are an integral part of these Interim Condensed Consolidated Financial Statements.

‌Consolidated Cash Flows Statements‌

Three months ended March 31

(unaudited, in millions of Canadian dollars)

2026

2025

Cash flows from operating activities

Income before income taxes

$ 247

$ 241

Other financing charges

Income taxes paid, net of refunds

(394)

(170)

Operating activities not affecting cash:

Expenses (income) from insurance contracts

(590)

Expenses (income) from reinsurance contracts

Expenses (income) from investment contracts and interest on deposits

Unrealized losses (gains) on investments

664

Provision for credit losses

Other depreciation

104

Other items not affecting cash

Operating activities affecting cash:

Sales, maturities and repayments on investments

17,083

12,751

Purchases of investments

(17,681)

(12,782)

Change in assets/liabilities related to insurance contracts

264

Change in assets/liabilities related to reinsurance contracts

(75)

(97)

Change in liabilities related to investment contracts and deposits

451

108

Other items affecting cash

348

229

Net cash from (used in) operating activities

401

871

Cash flows from investing activities

Acquisition of businesses, net of cash

(15)

(52)

Net purchases of fixed and intangible assets

(75)

(50)

Net cash from (used in) investing activities

(90)

(102)

Cash flows from financing activities

Issuance of common shares

Redemption of common shares (Note 9)

(261)

(29)

Redemption of debentures

–

(400)

Reimbursement of lease liabilities

(7)

(5)

Dividends paid on common shares

(90)

(84)

Dividends paid on preferred shares and distributions on other equity instruments

(12)

Interest paid on debentures

(11)

(16)

Interest paid on lease liabilities

(2)

(1)

Net cash from (used in) financing activities

(381)

(542)

Foreign currency gains (losses) on cash

Increase (decrease) in cash and short-term investments

(64)

228

Cash and short-term investments at beginning1

2,272

1,566

Cash and short-term investments at end

$ 2,208

$ 1,794

Supplementary information:

Cash

$ 1,884

$ 1,227

Short-term investments including cash equivalents

324

567

Total cash and short-term investments

$ 2,208

$ 1,794

1 The cash and short-term investments at the beginning of the three months ended March 31, 2026 reflects the application of the amendment to IFRS 9 on January 1, 2026, and consequently the amount differs from the cash and short-term investments at end previously published as at December 31, 2025. For information on the amendment to IFRS 9, refer to Note 2 to these Interim Condensed Consolidated Financial Statements.

The accompanying notes are an integral part of these Interim Condensed Consolidated Financial Statements.

‌Notes to Interim Condensed Consolidated Financial Statements‌

Three months ended March 31, 2026 and 2025 (unaudited) (in millions of Canadian dollars, unless otherwise indicated)

‌› General Information‌

iA Financial Corporation Inc. (iA Financial Corporation) is a holding company listed on the Toronto Stock Exchange and incorporated under the Business Corporations Act (Quebec). iA Financial Corporation and its subsidiaries (the “Company”) offer a wide range of life and health insurance products, savings and retirement plans, mutual funds, securities, loans, auto and home insurance, creditor insurance, replacement insurance, replacement warranties, extended warranties and other ancillary products for dealer services and other financial products and services. The Company’s products and services are offered on both an individual and group basis and extend throughout Canada and the United States.

The Company’s Interim Condensed Consolidated Financial Statements (the “Financial Statements”) are prepared on the basis of IFRS® Accounting Standards in accordance with IAS 34 Interim Financial Reporting, issued by the International Accounting Standards Board (IASB). These Financial Statements do not contain all the information required in a complete annual financial statement and should be read in conjunction with the Consolidated Financial Statements for the year ended December 31, 2025, which are included in the 2025 Annual Report. The material accounting policies used to prepare these Financial Statements are consistent with those found in the 2025 Annual Report, except for items mentioned in Note 2.

The publication of these Financial Statements was authorized by the Company’s Board of Directors on May 5, 2026.

‌› Changes in Accounting Policies‌

New Accounting Policies Applied to Financial Statements beginning on or after January 1, 2026.

Standards or amendments Description of the standards or amendments and impacts on financial statements of the Company

IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures

Description: On May 30, 2024, the IASB published an amendment to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures.

Amendments to the Classification and Measurement of Financial Instruments introduces an accounting policy choice relating to the derecognition of financial liabilities settled through electronic payment systems, clarifies the classification and characteristics of some financial asset types and adds new disclosure requirements regarding investments in equity instruments designated at fair value through other comprehensive income and financial instruments with contingent features, including environmental, social and corporate governance events.

Impact: In accordance with the provisions of the amendment, the Company has applied it on a modified retrospective basis as at January 1, 2026, and as a result, the comparative figures are not restated. The effect is limited to the accounting treatment related to the derecognition of certain financial liabilities which led, on January 1, 2026, to an increase of $10 in Cash and short-term investments and an increase in Other liabilities of the same amount. This had no impact on the equity of the Company.

Annual Improvements to IFRS Accounting Standards 2024-2025 Cycle

Description: On July 18, 2024, the IASB published the Annual Improvements to IFRS Accounting Standards 2024-2025 Cycle. The Annual Improvements clarify situations specific to five standards:

The provisions of these improvements apply prospectively.

Impact: No impact on the Company’s financial statements.

IFRS 1 First-time Adoption of International Financial Reporting Standards related to the fact that an entity which had designated a transaction as hedge accounting before the date of transition to IFRS Accounting Standards must meet the qualifying criteria of IFRS 9 Financial Instruments to reflect it in its opening IFRS statement of financial position. Otherwise, the entity should discontinue the hedge accounting;
IFRS 7 Financial Instruments: Disclosures related to the fact that an entity which is disclosing a gain or a loss on derecognition relating to financial assets in which the entity has continuing involvement shall disclose whether the fair value measurements included significant unobservable inputs as described in the “fair value hierarchy” requirements in IFRS 13 Fair Value Measurement;
IFRS 9 Financial Instruments related to the fact that when a lease liability is derecognized by a lessee, the difference between the carrying amount of the extinguished liability and the consideration paid are recognized in profit or loss. The amendment also specifies that the initial measurement of trade receivables must be in accordance with “the amount determined by applying IFRS 15 Revenue from Contracts with Customers” instead of “at their transaction price”, as previously mentioned in IFRS 9;
IFRS 10 Consolidated Financial Statements related to the fact that when assessing control, a party might be a “de facto agent” when those that direct the activities of the investor have the ability to direct that party to act on the investor’s behalf;
IAS 7 Statement of Cash Flows related to the fact that the term “cost method” replaces the term “at cost” regarding the reporting requirements in the statement of cash flows for investments in subsidiaries, associates and joint ventures since the term “cost method” is no longer defined in IFRS Accounting Standards.

‌› Investments and Net Investment Income‌

Carrying Value and Fair Value

As at March 31, 2026

(in millions of dollars)

At fair value through

profit or loss

At amortized

cost

Other

Total

Fair value

Cash and short-term investments

$ 323

$ 1,885

$ – $

2,208

$ 2,208

Bonds

Governments

7,743

–

7,743

Municipalities

972

–

972

Corporate and other

21,622

–

21,622

30,337

–

30,337

Stocks

Common

4,863

–

4,863

Preferred

484

–

484

Stock indexes

390

–

390

Investment fund units

1,653

–

1,653

7,390

–

7,390

Loans

Mortgages

Insured mortgages

Multi-residential

609

–

609

Non-residential

–

610

–

610

Conventional mortgages

Multi-residential 215

–

215

Non-residential 279

–

279

494

–

494

1,104

–

1,104

Corporate loans

280

–

280

Car loans

–

1,450

–

1,450

Other loans

–

889

–

889

1,384

2,339

–

3,723

3,711

Derivative financial instruments

814

–

814

Other investments

119

Investment properties

–

1,422

1,456

Total investments

$ 40,294

$ 4,227

$ 1,492

$ 46,013

$ 46,035

As at December 31, 2025

(in millions of dollars)

At fair value through

profit or loss

At amortized

cost

Other

Total

Fair value

Cash and short-term investments

$ 308

$ 1,954

$ – $

2,262

$ 2,262

Bonds

Governments

7,833

–

7,833

Municipalities

1,028

–

1,028

Corporate and other

22,219

–

22,219

31,080

–

31,080

Stocks

Common

3,996

–

3,996

Preferred

461

–

461

Stock indexes

400

–

400

Investment fund units

1,647

–

1,647

6,504

–

6,504

Loans

Mortgages

Insured mortgages

Multi-residential

694

–

694

Non-residential

–

695

–

695

Conventional mortgages

Multi-residential 198

–

198

Non-residential 264

–

264

462

–

462

1,157

–

1,157

Corporate loans

250

–

250

Car loans

–

1,450

–

1,450

Other loans

–

830

–

830

1,407

2,280

–

3,687

3,675

Derivative financial instruments

926

–

926

Other investments

119

Investment properties

–

1,446

1,480

Total investments

$ 40,270

$ 4,238

$ 1,516

$ 46,024

$ 46,046

Other investments include bonds, common stocks and short-term investments that are restricted investments, notes receivable and investments in associates and joint ventures. Bonds, common stocks and short-term investments that are restricted investments are classified at fair value through profit or loss. Notes receivable are classified at amortized cost. Investments in associates and joint ventures, accounted for according to the equity method, are presented in the Other column.

The fair value of investment properties includes the carrying value of investment properties accounted for at fair value and the fair value of linearization of rents accounted for in Other Assets.

Financial Assets Used in Fair Value Hedging

Interest Rate Risk Hedging

The Company designated a portion of its bonds in a fair-value hedge relationship in order to reduce its exposure to changes in interest rates on financial liabilities classified as financial liabilities at amortized cost. The Company uses bonds that have maturities of less than 1 year to 8 years as at March 31, 2026 (less than 1 year to 8 years as at December 31, 2025). The notional amount of the bonds is $603 as at March 31, 2026 ($629 as at December 31, 2025), while the carrying

value and the fair value of the bonds are $606 ($640 as at December 31, 2025). For the three months ended March 31, 2026, the Company recognized a loss of $1 on the hedging instruments (gain of $5 for the three months ended March 31, 2025) and a gain of $4 on the hedged items (loss of $1 for the three months ended March 31, 2025). For the three months ended March 31, 2026, the Company recognized an ineffectiveness of $3 ($4 for the three months ended March 31, 2025).

Investments in Associates and Joint Ventures

The Company holds interests ranging from 25% to 29% as at March 31, 2026 (25% to 29% as at December 31, 2025). The carrying value of these investments as at March 31, 2026 is $70 ($70 as at December 31, 2025). The share of net income and comprehensive income for the three months ended March 31, 2026 corresponds to a profit of less than $1 (profit of $1 for the three months ended March 31, 2025).

Net Investment Income

Three months ended March 31

(in millions of dollars)

2026

2025

Interest and other investment income

Interest

$ 469

$ 455

Dividends

134

113

Derivative financial instruments

(23)

(17)

Net rental income

Provision for credit losses

(17)

(24)

Other income and expenses

(5)

–

574

549

Change in fair value of investments

Cash and short-term investments

Bonds

(382)

283

Stocks

(59)

Loans

(5)

Derivative financial instruments

(286)

(317)

Investment properties

(4)

(11)

Other

–

(662)

(86)

Total net investment income

$ (88)

$ 463

‌› Fair Value of Financial Instruments and Investment Properties‌

Methods and assumptions used to estimate fair values of financial instruments and investment properties are disclosed in Note 6 of the Company’s Consolidated Financial Statements for the year ended December 31, 2025.

Fair Value Hierarchy

Disclosures regarding financial instruments and investment properties must be presented as a hierarchy that categorizes the inputs to valuation models used to measure the fair value of financial assets and financial liabilities. The hierarchy gives the highest priority to readily available unadjusted quoted prices in active markets for identical assets or liabilities and lowest priority to unobserved inputs. The three levels of the hierarchy are described below:

Level 1 – Valuation based on quoted prices in active markets (unadjusted) for identical assets or liabilities. Level 1 financial instruments are composed, among other things, of stocks traded on the market.

Level 2 – Valuation model based on inputs other than quoted prices included in Level 1 that are observable on the market for the asset or liability, either directly or indirectly. Level 2 financial instruments are composed, among other things, of bonds and private debts.

Level 3 – Valuation model based on valuation techniques that use significant unobservable market parameters and that reflect management’s best estimates.

Level 3 financial instruments are composed, among other things, of private equity.

If a financial instrument classified as Level 1 subsequently ceases to be actively traded, it is reclassified into Level 2. If the measurement of its fair value requires the use of significant unobservable inputs, it is directly reclassified into Level 3.

Assets

As at March 31,

2026

(in millions of dollars)

Level 1

Level 2

Level 3

Total

Recurring fair value measurements

Cash and short-term investments

$ –

$ 323

$ –

$ 323

Bonds

Governments

–

7,743

–

7,743

Municipalities

–

972

–

972

Corporate and other

–

21,307

315

21,622

–

30,022

315

30,337

Stocks

3,959

334

3,097

7,390

Mortgages

–

1,104

–

1,104

Corporate loans

–

280

Derivative financial instruments

274

539

814

Other investments

–

Investment properties

–

1,422

General fund investments recognized at fair value

4,233

32,368

5,115

41,716

Other assets

–

Segregated funds financial instruments

53,441

9,403

1,322

64,166

Total financial assets at fair value

$ 57,674

$ 41,837

$ 6,437

$ 105,948

As at December 31, 20251

(in millions of dollars)

Level 1

Level 2

Level 3

Total

Recurring fair value measurements

Cash and short-term investments

$ –

$ 308

$ –

$ 308

Bonds

Governments

–

7,833

–

7,833

Municipalities

–

1,028

–

1,028

Corporate and other

–

21,894

325

22,219

–

30,755

325

31,080

Stocks

3,189

331

2,984

6,504

Mortgages

–

1,157

–

1,157

Corporate loans

–

250

Derivative financial instruments

219

706

926

Other investments

–

Investment properties

–

1,446

General fund investments recognized at fair value

3,411

33,299

5,006

41,716

Other assets

–

Segregated funds financial instruments

52,401

9,242

1,291

62,934

Total financial assets at fair value

$ 55,812

$ 42,606

$ 6,297

$ 104,715

1 During the three months ended March 31, 2026, the Company revised the presentation of fair value hierarchy information to more accurately represent the observability of inputs used in valuation models and to better reflect practices observed on the market. Data for the year ended December 31, 2025 have been reclassified to comply with the current period’s presentation. An amount of

$4,223 of corporate bonds, an amount of $84 of governments bonds and an amount of $95 of segregated funds financial instruments have therefore been reclassified from Level 3 to Level 2 as at December 31, 2025. These reclassifications had no impact on the net income of the Company.

There were no transfers from Level 1 to Level 2 during the three months ended March 31, 2026 (none for the year ended December 31, 2025). There were no transfers from Level 2 to Level 1 during the three months ended March 31, 2026 (none for the year ended December 31, 2025).

There were no transfers from Level 2 to Level 3 during the three months ended March 31, 2026 ($11 for the year ended December 31, 2025). The transfers for the year ended December 31, 2025 were related to the fair value of bonds whose price had remained unchanged for more than 30 days which, according to the Company’s internal policy, resulted in a transfer. There were no transfers from Level 3 to Level 2 during the three months ended March 31, 2026 (none for the year ended December 31, 2025).

There were no transfers from Level 1 to Level 3 during the three months ended March 31, 2026 (none for the year ended December 31, 2025). There were no transfers from Level 3 to Level 1 during the three months ended March 31, 2026 (none for the year ended December 31, 2025).

During the three months ended March 31, 2026, the Company did not reclassify properties from own-use to investment properties, in relation to a change in use. For the year ended December 31, 2025, the fair value of properties reclassified from own-use to investment properties, which are classified as Level 3, was assessed at $44. The reclassifications did not have a significant impact on the Company’s Consolidated Comprehensive Income Statements.

The Company presents the transfers between hierarchy levels and reclassifications at the quarter-end fair value for the quarter during which the transfer occurred. The following tables present assets recognized at fair value evaluated according to Level 3 parameters:

Three months ended March 31, 2026

Transfers

Total unrealized gains (losses) included in net

Balance as at

Gains (losses)

into (out of) income on

(in millions of dollars)

December 31,

2025

included in

net income

Purchases

Sales and

settlements

Level 3 and Balance as at

reclassifications March 31, 2026

investments

still held

Bonds

$ 325

$ (6)

$ –

$ (4)

$ – $ 315

$ (8)

Stocks

2,984

177

(90)

– 3,097

Corporate loans

250

(12)

– 280

(1)

Derivative financial

instruments

–

Investment properties

1,446

(4)

(34)

–

1,422

(5)

General fund investments

recognized at fair value

5,006

230

(140)

–

5,115

Segregated funds financial

instruments

1,291

(5)

– 1,322

Total

$ 6,297

$ 27

$ 258

$ (145)

$ – $ 6,437

$ 17

Year ended December 31, 20251

Transfers

Total unrealized gains (losses) included in net

Balance as at December 31,

Gains (losses) included in

into (out of)

Sales and Level 3 and

Balance as at December 31,

income on investments

(in millions of dollars)

2024

net income

Purchases

settlements

reclassifications

2025

still held

Bonds

$ 326

$ (18)

$ 38

$ (32)

$ 11

$ 325

$ (14)

Stocks

2,501

664

(213)

–

2,984

Corporate loans

–

249

–

250

Derivative financial

instruments

–

Investment properties

1,519

(61)

(102)

1,446

(62)

General fund investments

recognized at fair value

4,346

(46)

998

(347)

5,006

(27)

Segregated funds financial

instruments

1,155

503

(444)

–

1,291

(45)

Total

$ 5,501

$ 31

$ 1,501

$ (791)

$ 55

$ 6,297

$ (72)

1 During the three months ended March 31, 2026, the Company revised the presentation of fair value hierarchy information to more accurately represent the observability of inputs used in valuation models and to better reflect practices observed on the market. Consequently, data for the year ended December 31, 2025 have been reclassified to comply with the current period’s presentation. These reclassifications had no impact on the net income of the Company.

During the three months ended March 31, 2026, an amount of $6 ($46 for the year ended December 31, 2025) presented in Purchases for investment properties corresponds to capitalizations to Investment properties.

Gains (losses) included in net income and Total unrealized gains (losses) included in net income on investments still held are presented in Net investment income in the Income Statement, except for those related to segregated funds net assets, which are presented in Investment income (expenses) from segregated funds net assets in the Income Statement.

Valuation for Level 3 Assets

The main unobservable input used in valuation of bonds and corporate loans as at March 31, 2026 corresponds to credit and liquidity risk premiums ranging from 1.02% to 6.50% (0.70% to 6.50% as at December 31, 2025). The credit and liquidity risk premiums are the difference between the expected yield of an asset and the risk-free rate of return. The difference is called a spread and represents an extra compensation for the risk of default of the borrower and the lack of active markets to sell the financial assets. If all other factors remain constant, a decrease (increase) in credit and liquidity risk premiums will lead to an increase (decrease) in fair value of bonds and corporate loans.

The main unobservable input used in valuation of stocks as at March 31, 2026 corresponds to 100% of the net asset value of the shares owned by the Company (100% as at December 31, 2025), which is provided by the general partner of the limited partnership or the manager of the funds. The net asset value is the estimated fair value of the asset minus the fair value of the liability divided by the number of shares outstanding of a limited partnership or a fund.

The main unobservable inputs used in the valuation of the investment properties as at March 31, 2026 are the discount rate, which is between 5.75% and 8.75% (5.75% and 9.00% as at December 31, 2025) and the terminal capitalization rate, which is between 5.50% and 7.75% (5.25% and 7.75% as at December 31, 2025). The discount rate is based on market activity by type of building and by location and reflects the expected rate of return to be realized on investments over the next 10 years. The terminal capitalization rate is based on market activity by type of building and by location and reflects the expected rate of return to be realized on investments over the remaining life after the 10-year period. If all other factors remain constant, a decrease (increase) in the discount rate and terminal capitalization rate will lead to an increase (decrease) in fair value of investment properties.

Fair Value Disclosed in the Notes

The Company classifies and measures certain financial instruments at amortized cost. The fair value of these financial instruments is disclosed in the notes. The following tables show the hierarchy level of such fair values:

As at March 31, 2026

(in millions of dollars)

Level 1

Level 2

Level 3

Total

Classified at amortized cost

Car loans and other loans

$ –

$ 2,327

$ –

$ 2,327

Total of assets whose fair value is disclosed in the notes

$ –

$ 2,327

$ –

$ 2,327

As at December 31, 2025

(in millions of dollars)

Level 1

Level 2

Level 3

Total

Classified at amortized cost

Car loans and other loans

$ –

$ 2,268

$ –

$ 2,268

Total of assets whose fair value is disclosed in the notes

$ –

$ 2,268

$ –

$ 2,268

Financial Liabilities

The following tables present the fair value of financial liabilities measured at fair value on a recurring basis and those whose fair value is disclosed in a note by hierarchy level:

As at March 31, 2026

(in millions of dollars)

Level 1

Level 2

Level 3

Total

Recurring fair value measurements

Other liabilities

Short-selling securities

$ –

$ 499

$ – $

499

Securities sold under repurchase agreements

–

1,951

–

1,951

Securitization liabilities

–

Derivative financial instruments

103

756

–

859

Investment contract liabilities and deposits

–

1,173

–

1,173

Total of liabilities classified at fair value through profit or loss

$ 103

$ 4,385

$ – $

4,488

Classified at amortized cost

Other liabilities

Mortgage debt

$ –

$ 2

$ – $

Debentures

–

1,515

–

1,515

Investment contract liabilities and deposits

–

6,860

–

6,860

Investment contract liabilities related to segregated funds

–

16,600

–

16,600

Total of liabilities classified at amortized cost

$ –

$ 24,977

$ – $

24,977

As at December 31, 2025

(in millions of dollars)

Level 1

Level 2

Level 3

Total

Recurring fair value measurements

Other liabilities

Short-selling securities

$ –

$ 452

$ – $

452

Securities sold under repurchase agreements

–

988

–

988

Securitization liabilities

–

Derivative financial instruments

669

–

734

Investment contract liabilities and deposits

–

1,101

–

1,101

Total of liabilities classified at fair value through profit or loss

$ 65

$ 3,216

$ – $

3,281

Classified at amortized cost

Other liabilities

Mortgage debt

$ –

$ 2

$ – $

Debentures

–

1,524

–

1,524

Investment contract liabilities and deposits

–

6,435

–

6,435

Investment contract liabilities related to segregated funds

–

16,682

–

16,682

Total of liabilities classified at amortized cost

$ –

$ 24,643

$ – $

24,643

‌› Management of Financial Risks Associated with Financial Instruments and Insurance Contracts‌

Effective risk management rests on identifying, assessing, measuring, understanding, managing, monitoring and communicating the risks to which the Company is exposed to in the course of its operations. Risk management is comprised of a series of objectives, policies and procedures that are approved by the Board of Directors and enforced by managers. The main risk management policies and procedures are subject to review annually, or more frequently when deemed relevant. More information regarding the principles, responsibilities, key measures and management practices of the Company’s risk management of financial instruments is provided in the shaded portion of the “Risk Management” section of the 2025 Management’s Discussion and Analysis, and any relevant updates are presented in the “Risk Management and Sensitivities – Update” section of the Management’s Discussion and Analysis for the First Quarter of 2026. Those shaded portions are considered an integral part of these financial statements.

Credit Risk

Credit risk represents the risk of financial loss due to a borrower’s or a counterparty’s failure to repay its obligation when due.

Credit Quality Indicators Bonds by Investment Grade

(in millions of dollars)

As at March 31, 2026

As at December 31, 2025

AAA

$ 1,716

$ 1,568

8,048

8,378

10,845

11,240

BBB

9,532

9,693

BB and lower

196

201

Total

$ 30,337

$ 31,080

The Company prepares an assessment of the quality of the investment if the evaluation is not available from a credit rating agency. Bonds that have been internally evaluated represent an amount of $3,776 as at March 31, 2026 ($3,573 as at December 31, 2025).

Loans

(in millions of dollars)

As at March 31, 2026

As at December 31, 2025

Insured mortgages

$ 610

$ 695

Conventional mortgages

494

462

Corporate loans1

280

250

Car loans and other loans

2,339

2,280

Total

$ 3,723

$ 3,687

1 Corporate loans have an investment grade of BB and lower.

The credit quality of loans is assessed internally, on a regular basis, when the review of the portfolio is carried out.

Allowance for Credit Losses Allowance for Credit Losses by Stage

The following tables present the gross carrying amount and the allowance for credit losses related to car loans by stage:

As at March 31, 2026

Non-impaired

Impaired

(in millions of dollars)

Stage 1

Stage 2

Stage 3

Total

Car loans1

Low risk2

$ 1,256

$ 226

$ –

$ 1,482

Medium risk2

–

High risk2

–

Impaired

–

Gross carrying amount

1,279

232

1,529

Allowance for credit losses

Carrying amount

$ 1,234

$ 210

$ 6

$ 1,450

As at December 31, 2025

Non-impaired

Impaired

(in millions of dollars)

Stage 1

Stage 2

Stage 3

Total

Car loans1

Low risk2

$ 1,254

$ 230

$ –

$ 1,484

Medium risk2

–

High risk2

–

Impaired

–

Gross carrying amount

1,278

237

1,535

Allowance for credit losses

Carrying amount

$ 1,233

$ 209

$ 8

$ 1,450

1 The credit risk rating is reflective of a nonprime lender’s risk perception.

2 Low risk is considered near prime, medium risk is nonprime and high risk is subprime.

For the three months ended March 31, 2026, the provision for credit losses related to car loans was $17 ($24 for the three months ended March 31, 2025). Considering their nature, other loans have a negligible allowance for credit losses due to their low credit risk.

‌› Derivative Financial Instruments‌

The Company is an end user of derivative financial instruments in the normal course of managing exposure to fluctuations in interest rates, currency exchange rates and fair values of investments. Derivative financial instruments are financial contracts whose value is derived from underlying interest rates, exchange rates, other financial instruments or indexes.

The notional amount represents the amount to which a rate or price is applied to determine the cash flows to be exchanged periodically and does not represent direct credit exposure. Maximum credit risk is the estimated cost of replacing derivative financial instruments that have a positive value should the counterparty default. The maximum credit risk of derivative financial instruments as at March 31, 2026 is $814 ($926 as at December 31, 2025). The Company’s exposure at the end of each reporting period is limited to the risk that a counterparty does not honour the terms of a derivative financial instrument.

As at March 31, 2026

Notional amount Fair value

(in millions of dollars)

Less than 1 year

1 to 5 years

Over 5 years

Total

Positive

Negative

Equity contracts

Swaps

$ 2,387

$ 9

$ 34

$ 2,430

$ 30

$ (28)

Futures

377

–

377

–

Options

8,345

–

8,345

296

(112)

Currency contracts

Swaps

365

7,307

7,722

252

(135)

Futures

–

Forwards

8,065

–

8,065

(107)

Options

–

Interest rate contracts

Swaps

525

3,892

12,331

16,748

210

(344)

Futures

207

–

207

–

Forwards

10,882

–

10,882

(133)

Options

–

Other derivative contracts

–

Total

$ 30,960

$ 4,268

$ 19,672

$ 54,900

$ 814

$ (859)

As at December 31, 2025

Notional amount Fair value

(in millions of dollars)

Less than 1 year

1 to 5 years

Over 5 years

Total

Positive

Negative

Equity contracts

Swaps

$ 1,850

$ 5

$ 42

$ 1,897

$ 20

$ (29)

Futures

319

–

319

–

Options

6,726

–

6,726

234

(70)

Currency contracts

Swaps

246

7,245

7,559

329

(80)

Forwards

8,904

–

8,904

127

(20)

Options

259

–

259

(2)

Interest rate contracts

Swaps

609

3,924

11,333

15,866

206

(379)

Futures

–

Forwards

9,976

–

9,976

(154)

Other derivative contracts

–

Total

$ 28,738

$ 4,177

$ 18,620

$ 51,535

$ 926

$ (734)

As at March 31, 2026

Notional amount

Fair value

(in millions of dollars)

Positive

Negative

Derivative financial instruments not designated as hedge accounting

$ 49,027

$ 725

$ (766)

Net investment hedge

5,865

(93)

Cash flow hedge

Market risk

–

Total of derivative financial instruments

$ 54,900

$ 814

$ (859)

As at December 31, 2025

Notional amount

Fair value

(in millions of dollars)

Positive

Negative

Derivative financial instruments not designated as hedge accounting

$ 48,396

$ 871

$ (734)

Net investment hedge

3,131

–

Cash flow hedge

Market risk

–

Total of derivative financial instruments

$ 51,535

$ 926

$ (734)

Net Investment Hedge

As at March 31, 2026, forward contracts and currency swaps, designated as hedges of net investments in foreign operations with a functional currency other than the functional currency of the Company, have maturities of less than 1 year for forward contracts (less than 1 year as at December 31, 2025) and maturities of less than 1 year to 38 years for currency swaps (none as at December 31, 2025). The average CAD/USD exchange rate is 0.7332 for forward contracts (0.7174 as at December 31, 2025) and 0.7606 for currency swaps (none as at December 31, 2025). The effective portion of changes in fair value is recorded in Other comprehensive income, as is the foreign currency translation of the net investment in a foreign operation. For the three months ended March 31, 2026 and 2025, the Company did not recognize any ineffectiveness.

Cash Flow Hedge

Market Risk Hedging

As at March 31, 2026, the Company uses a cash flow hedging relationship in order to manage its exposure to volatility of market prices on forecast transactions. The Company uses swap contracts that have maturities of 2 years or less (2 years or less as at December 31, 2025). For the three months ended March 31, 2026 and 2025, the Company did not recognize any ineffectiveness.

‌› Segregated Funds Net Assets‌

The table below comprises the underlying items for insurance contracts with direct participation features related to segregated funds as well as those for investment contracts related to segregated funds, which is the segregated funds net assets, and shows the composition. The fair value of the underlying items for insurance contracts with direct participation features, which are calculated under the variable fee approach, is equivalent to the Insurance contract liabilities related to segregated funds in Note 8 “Insurance Contracts and Reinsurance Contracts”, and the fair value of the underlying items for investment contracts related to segregated funds, which are accounted for at amortized cost, is equivalent to the Investment contract liabilities related to segregated funds in the Statement of Financial Position.

(in millions of dollars)

As at March 31, 2026

As at December 31, 2025

Assets

Cash and short-term investments

$ 1,057

$ 1,745

Bonds

7,859

7,679

Stocks and investment funds

55,339

54,264

Mortgages

Derivative financial instruments

–

Other assets

998

697

65,345

64,472

Liabilities

Accounts payable and accrued expenses

1,183

1,425

Derivative financial instruments

–

1,195

1,425

Net assets

$ 64,150

$ 63,047

The following table presents the change in segregated funds net assets:

Three months ended March 31

(in millions of dollars)

2026

2025

Balance at beginning

$ 63,047

$ 52,575

Add:

Amounts received from policyholders

3,686

3,210

Interest, dividends and other investment income

401

315

Change in fair value of investments

(314)

(431)

3,773

3,094

Less:

Amounts withdrawn by policyholders

2,357

1,771

Operating expenses

313

258

2,670

2,029

Balance at end

$ 64,150

$ 53,640

‌› Insurance Contracts and Reinsurance Contracts‌

Changes in Insurance Contract and Reinsurance Contract Balances

Roll-Forward of Net Insurance Contract Liabilities (Assets) by Measurement Component

The following tables disclose the reconciliation by measurement component for insurance contracts not measured under the premium allocation approach (PAA):

As at March 31, 2026

(in millions of dollars)

Balance at beginning

Estimates of present value of future cash flows

Risk adjustment for nonfinancial risk

Contractual

service

margin Total

Insurance contract liabilities

$ 23,692

$ 4,116

$ 6,927

$ 34,735

Insurance contract assets

(376)

261

(80)

Insurance contract liabilities related to segregated funds

46,365

–

46,365

Net insurance contract liabilities (assets) at beginning

69,681

4,151

7,188

81,020

Insurance service result

Changes that relate to current services

Contractual service margin recognized for services provided

–

(210)

Change in risk adjustment for non-financial risk for risk expired

–

(89)

–

(89)

Experience adjustments

(12)

–

(12)

Changes that relate to future services

Contracts initially recognized in the period

(300)

123

193

Changes in estimates that adjust the contractual service margin

(5)

(29)

–

Changes in estimates that result in losses and reversal of losses on onerous contracts

(3)

–

Changes that relate to past services

Changes to liabilities for incurred claims

(13)

–

(9)

(302)

(11)

(296)

Finance expenses (income) from insurance contracts

(197)

(9)

(178)

Amounts recognized in net income

(499)

(20)

(474)

Effect of change in exchange rates

Cash flows

1,158

–

1,158

Net insurance contract liabilities (assets) at end

$ 70,352

$ 4,140

$ 7,244

$ 81,736

Balance at end

Insurance contract liabilities

$ 23,178

$ 4,105

$ 6,978

$ 34,261

Insurance contract assets

(376)

266

(75)

Insurance contract liabilities related to segregated funds

47,550

–

47,550

Net insurance contract liabilities (assets) at end

$ 70,352

$ 4,140

$ 7,244

$ 81,736

Estimates

As at December 31, 2025 Risk

(in millions of dollars)

Balance at beginning

of present value of future cash flows

adjustment for nonfinancial risk

Contractual

service

margin Total

Insurance contract liabilities

$ 24,336

$ 3,896

$ 6,130

$ 34,362

Insurance contract assets

(492)

355

(105)

Insurance contract liabilities related to segregated funds

38,149

–

38,149

Net insurance contract liabilities (assets) at beginning

61,993

3,928

6,485

72,406

Insurance service result

Changes that relate to current services

Contractual service margin recognized for services provided

–

(782)

Change in risk adjustment for non-financial risk for risk expired

–

(350)

–

(350)

Experience adjustments

(110)

–

(110)

Changes that relate to future services

Contracts initially recognized in the year

(1,126)

457

721

Changes in estimates that adjust the contractual service margin

(859)

772

–

Changes in estimates that result in losses and reversal of losses on onerous contracts

(5)

–

Changes that relate to past services

Changes to liabilities for incurred claims

(28)

–

(9)

(2,036)

161

711

(1,164)

Finance expenses (income) from insurance contracts

5,718

5,824

Amounts recognized in net income

3,682

245

733

4,660

Effect of change in exchange rates

(36)

(23)

(33)

(92)

Cash flows

4,028

–

4,028

Contracts acquired in the year

Net insurance contract liabilities (assets) at end

$ 69,681

$ 4,151

$ 7,188

$ 81,020

Balance at end

Insurance contract liabilities

$ 23,692

$ 4,116

$ 6,927

$ 34,735

Insurance contract assets

(376)

261

(80)

Insurance contract liabilities related to segregated funds

46,365

–

46,365

Net insurance contract liabilities (assets) at end

$ 69,681

$ 4,151

$ 7,188

$ 81,020

As at March 31, 2026, the amount of net insurance contract liabilities (assets) measured under the PAA is $2,622 ($2,582 as at December 31, 2025).

Net Reinsurance Contract Assets (Liabilities) by Measurement Component

The following tables disclose the net reinsurance contract assets (liabilities) by measurement component for reinsurance contracts not measured under the PAA:

As at March 31, 2026

(in millions of dollars)

Estimates of present value of future cash flows

Risk adjustment for nonfinancial risk

Contractual

service

margin Total

Net reinsurance contract assets (liabilities)

Reinsurance contracts not measured under the PAA

Reinsurance contract assets

$ 1,062

$ 1,077

$ (519)

$ 1,620

Reinsurance contract liabilities

(65)

(2)

$ 997

$ 1,086

$ (465)

$ 1,618

Estimates

As at December 31, 2025 Risk

(in millions of dollars)

of present value of future cash flows

adjustment for nonfinancial risk

Contractual

service

margin Total

Net reinsurance contract assets (liabilities)

Reinsurance contracts not measured under the PAA

Reinsurance contract assets

$ 1,042

$ 1,084

$ (514)

$ 1,612

Reinsurance contract liabilities

(61)

–

$ 981

$ 1,093

$ (462)

$ 1,612

As at March 31, 2026, the amount of net reinsurance contract assets (liabilities) measured under the PAA is $1,715 ($1,675 as at December 31, 2025).

Insurance Revenue

Three months ended March 31

(in millions of dollars)

2026

2025

Contracts not measured under the PAA

Changes in liabilities for remaining coverage

Contractual service margin recognized for services provided

$ 210

$ 186

Change in risk adjustment for non-financial risk for risk expired

Expected incurred claims and other insurance service expenses

969

874

Recovery of insurance acquisition cash flows

197

147

1,475

1,300

Contracts measured under the PAA

541

526

$ 2,016

$ 1,826

Discount Rates

The following tables present discount rates applied to discounting of future cash flows based on the liquidity characteristics of the insurance contracts:

As at March 31, 2026

1 year

5 years

10 years

20 years

30 years

70 years

Canadian products

Least illiquid curve

2.78%

3.40%

4.15%

5.03%

5.04%

4.35%

Most illiquid curve

3.87%

4.61%

5.22%

5.75%

6.07%

5.15%

U.S. products

Least illiquid curve

4.48%

4.80%

5.34%

6.10%

6.24%

4.90%

Most illiquid curve

4.73%

5.05%

5.59%

6.35%

6.49%

5.15%

As at December 31, 2025

1 year

5 years

10 years

20 years

30 years

70 years

Canadian products

Least illiquid curve

2.56%

3.24%

4.08%

4.93%

4.35%

Most illiquid curve

3.50%

4.39%

5.08%

5.62%

5.80%

5.15%

U.S. products

Least illiquid curve

4.03%

4.45%

5.05%

5.88%

6.05%

4.90%

Most illiquid curve

4.28%

4.70%

5.30%

6.13%

6.30%

5.15%

‌› Common Shares‌

The common shares issued by the Company are as follows:

As at March 31, 2026 As at December 31, 2025

(in millions of dollars, unless otherwise indicated)

Number (in thousands)

Amount

Number (in thousands)

Amount

Common shares

Balance at beginning

91,735

$ 1,514

93,403

$ 1,524

Shares issued on exercise of stock options

300

Shares redeemed and cancelled

(1,646)

(27)

(1,968)

(32)

Balance at end

90,118

$ 1,489

91,735

$ 1,514

Stock Option Plan

As at March 31, 2026, the number of outstanding stock options was 1,272,173 (1,149,634 as at December 31, 2025). For the three months ended March 31, 2026, the Company granted 151,689 stock options exercisable at $154.37 (162,000 stock options exercisable at $134.17 for the year ended December 31, 2025).

Normal Course Issuer Bid

With the approval of the Toronto Stock Exchange and the Autorité des marchés financiers (AMF), the Board of Directors authorized the Company to repurchase for cancellation, in the normal course of its activities, between November 14, 2025 and November 13, 2026, up to 4,607,178 common shares (4,694,894 common shares in the normal course issuer bid of 2024), representing approximately 5% of its 92,143,563 common shares issued and outstanding as at October 31, 2025. For the three months ended March 31, 2026, a total of 1,646,356 common shares (1,968,075 as at December 31, 2025) were repurchased and cancelled for a net cash amount of $261 ($294 as at December 31, 2025), of which $27 was recorded against common shares ($32 as at December 31, 2025) and $234 against retained earnings ($262 as at December 31, 2025). Taxes related to the redemption net of the issuance of common shares for a total of $5 were recognized in Retained earnings ($5 as at December 31, 2025).

Dividends

Three months ended March 31

2026

2025

(in millions of dollars, unless otherwise indicated)

Total

Per share (in dollars)

Total

Per share (in dollars)

Common shares

$ 90

$ 0.99

$ 84

$ 0.90

Dividends Declared and Not Recognized on Common Shares

A dividend of 1.1000 dollars per share was approved by the Board of Directors of the Company on May 5, 2026. This dividend was not recorded as a liability in these Financial Statements. This dividend will be paid on June 15, 2026 to the shareholders of record as of May 15, 2026, date on which it will be recognized in the retained earnings of the Company.

‌› Preferred Shares and Other Equity Instruments‌

The preferred shares and other equity instruments issued are as follows:

As at March 31, 2026 As at December 31, 2025

(in millions of dollars, unless otherwise indicated)

Number (in thousands)

Amount

Number (in thousands)

Amount

Preferred shares, Class A

Balance at beginning

400

$ 400

–

$ –

Shares issued – Series C

–

400

Balance at end

400

Other equity instruments – Subordinated debentures

Balance at beginning and at end

600

Total preferred shares and other equity instruments

1,000

$ 1,000

1,000

$ 1,000

Preferred Shares

Dividends Declared and Not Recognized

A dividend of 32.175 dollars per Class A – Series C preferred share was approved by the Board of Directors of the Company on May 5, 2026. This dividend was not recorded as a liability in these Financial Statements. This dividend will be paid on June 30, 2026 to the shareholders of record as of June 5, 2026, date on which it will be recognized in the retained earnings of the Company.

Other Equity Instruments

Distributions

For the three months ended March 31, 2026, distributions on other equity instruments for a total of $12 ($9 after tax) were recognized in Retained earnings

($12 ($9 after tax) for the three months ended March 31, 2025).

‌› Capital Management‌

Regulatory Requirements and Solvency Ratio

The Company is committed to respecting certain requirements of the guideline on capital adequacy requirements for life insurers (CARLI).

An updated version of CARLI, applicable prospectively, came into effect on January 1, 2026. As at December 31, 2025, the Company anticipated the application, as authorized by the AMF, of the sections related to exposure to domestic infrastructure, whether in the form of debt or equity.

According to CARLI, many items are included in the solvency ratio:

The available capital represents the total Tier 1 and Tier 2 capital, less other deductions prescribed by the AMF.

Tier 1 capital contains more permanent equity items and is primarily composed of equity attributable to common shareholders, preferred shares, other qualifying equity instruments and the contractual service margin. Goodwill and other intangible assets are deducted from this category.

Tier 2 capital, notably composed of subordinated debentures and various items, represents capital of lower quality than Tier 1 capital, but still qualifies as available capital in the calculation of the total ratio.

The surplus allowance is the value of the risk adjustment for non-financial risk included in insurance contract liabilities.

The eligible deposits are amounts related to unregistered reinsurance agreements, which are deposited in guarantee instruments.

The base solvency buffer is determined according to five risk categories, namely credit risk, market risk, insurance risk, segregated fund guarantee risk and operational risk. These risk components are calculated using various methods and consider the risks associated to asset and liability elements that are on and off the Statement of Financial Position. The base solvency buffer represents the sum of risk components minus some credits (for example, between-risk diversification and adjustable products) multiplied by a scalar of 1.00.

The CARLI total ratio is calculated by dividing the sum of the available capital, the surplus allowance and the eligible deposits by the base solvency buffer.

According to the AMF guideline, the Company must set a target level of available capital that exceeds the minimum requirements. The guideline also stipulates that most of the available capital must be Tier 1, which absorbs the losses related to current operations.

The Company manages its capital on a consolidated basis. As at March 31, 2026, the Company maintains a ratio that satisfies the regulatory requirements.

(in millions of dollars, unless otherwise indicated) As at March 31, 2026

Available capital

Tier 1 capital $ 6,325

Tier 2 capital 5,720

Surplus allowance and eligible deposits 3,083

Total $ 15,128

Base solvency buffer $ 11,311

Total ratio 134%

As at December 31, 2025, the solvency ratio was 133% and the Company maintained a ratio that satisfied the regulatory requirements.

‌› Income Taxes‌

Income tax expense (recovery) for the period consists of:

Three months ended March 31

(in millions of dollars, unless otherwise indicated)

2026

2025

Current income tax expense (recovery)

$ 127

$ 116

Deferred income tax expense (recovery)

(26)

(70)

$ 101

$ 46

Effective Income Tax Rate

The effective income tax rate for the three months ended March 31, 2026 differs from the Company’s statutory income tax rate of 28%, mainly due to the impact of tax legislation changes enacted during the quarter.

For the three months ended March 31, 2026, the effective income tax rate was 41% in comparison to 19% for the three months ended March 31, 2025. This increase is mainly due to the unfavourable impact of tax legislation changes enacted during the quarter and lower tax savings from tax-exempt investment income, partially offset by lower adjustments related to prior years compared to the three months ended March 31, 2025.

‌› Segmented Information‌

The Company offers its products and services to retail customers, businesses and groups and primarily operates in Canada and in the United States. The Company’s business units are grouped into reportable operating segments based on their similar economic characteristics. The Company’s operating segments, which reflect its organizational structure for decision making, are described below according to their main products and services or to their specific characteristics:

Insurance, Canada – Life and health insurance products, auto and home insurance products, creditor insurance, replacement insurance and warranties, extended warranties and other ancillary products for dealer services, and specialized products for special markets.

Wealth Management – Products and services for savings plans, retirement funds and segregated funds, in addition to securities brokerage (including cross-border services), trust operations and mutual funds.

US Operations – Life insurance products and extended warranties relating to dealer services sold in the United States. Investment – Investment and financing activities of the Company, except the investment activities of wealth distribution affiliates. Corporate – All expenses that are not allocated to other operating segments, such as expenses for certain corporate functions.

Inter-segment transactions as well as some adjustments related to consolidation are shown in the Consolidation adjustments column. Inter-segment transactions consist primarily of activities carried out in the normal course of business for those operating segments and are subject to normal market conditions.

Considering the Company’s total portfolio management strategy, most of the Company’s investments are allocated to the Investment segment. When assessing segmented performance, management allocates Finance income (expenses) from insurance contracts, Finance income (expenses) from reinsurance contracts and nearly all (Increase) decrease in investment contract liabilities and interest on deposits to this operating segment.

Segmented Results

Three months ended March 31, 2026

(in millions of dollars)

Insurance, Canada

Wealth Management

Operations

Investment

Corporate

Consolidation adjustments

Total

Insurance service result

Insurance revenue

$ 1,127

$ 377

$ 512

–

$ 2,016

Insurance service expenses and net expenses from reinsurance contracts

(988)

(260)

(463)

–

(1,711)

139

117

–

305

Net investment result

Net investment income

–

(121)

(8)

–

(88)

Finance income (expenses) from insurance and

reinsurance contracts and change in investment

contract liabilities and interest on deposits

–

(2)

–

190

–

188

–

(8)

–

100

Other revenues

543

(26)

628

Other expenses

(69)

(542)

(74)

(62)

(65)

(786)

Income before income taxes

125

157

(72)

–

247

Income tax (expense) recovery

(37)

(43)

(5)

(35)

–

(101)

Net income

114

(19)

(53)

–

146

Dividends on preferred shares and distributions

on other equity instruments

–

(9)

–

(9)

Net income attributed to common shareholders

$ 88

$ 114

$ 16

$ (28)

$ (53)

$ –

$ 137

Three months ended March 31, 2025

(in millions of dollars)

Insurance, Canada

Wealth Management

Operations

Investment

Corporate

Consolidation adjustments

Total

Insurance service result

Insurance revenue $ 1,049

$ 307

$ 470

$ –

$ 1,826

Insurance service expenses and net expenses from reinsurance contracts

(913)

(211)

(421)

–

(1,545)

136

–

281

Net investment result

Net investment income

–

436

–

463

Finance income (expenses) from insurance and

reinsurance contracts and change in investment

contract liabilities and interest on deposits

–

(357)

–

(357)

–

106

Other revenues

390

(19)

487

Other expenses

(60)

(380)

(78)

(64)

(70)

(633)

Income before income taxes

128

132

(67)

–

241

Income tax (expense) recovery

(41)

(37)

(5)

–

(46)

Net income

(50)

–

195

Distributions on other equity instruments

–

(9)

–

(9)

Net income attributed to common shareholders

$ 87

$ 95

$ 19

$ 35

$ (50)

$ –

$ 186

‌› Earnings Per Common Share‌

Basic Earnings Per Share

Basic earnings per share are calculated by dividing the net income attributed to common shareholders by the weighted average number of outstanding common shares during the period.

Three months ended March 31

(in millions of dollars, unless otherwise indicated)

2026

2025

Net income attributed to common shareholders

$ 137

$ 186

Weighted average number of outstanding shares (in millions of units)

Basic earnings per share (in dollars)

$ 1.50

$ 1.99

Diluted Earnings Per Share

Diluted earnings per share are calculated by adjusting the weighted average number of outstanding common shares to take into account the conversion of all potentially dilutive common shares.

The dilutive effect of stock options considers the number of shares presumed issued without consideration, calculated as the difference between the number of shares deemed to have been issued (by assuming the outstanding stock option grants are exercised) and the number of shares that would have been issued at the average market price for the period (the number of shares that would have been issued using the issuance proceeds, using the average market price of the Company’s common shares for the period). For the three months ended March 31, 2026, an average of 23,379 antidilutive stock options (35,452 for the three months ended March 31, 2025) were excluded from the calculation.

Three months ended

March 31

(in millions of dollars, unless otherwise indicated)

2026

2025

Net income attributed to common shareholders

$ 137

$ 186

Weighted average number of outstanding shares (in millions of units)

Add: dilutive effect of stock options granted and outstanding (in millions of units)

Weighted average number of outstanding shares on a diluted basis (in millions of units)

Diluted earnings per share (in dollars)

$ 1.49

$ 1.98

There was no transaction on common shares that could affect these calculations after the closing date and before the date of authorization for issue of these Financial Statements.

‌› Commitments‌

Investment Commitments

In the normal course of the Company’s business, various outstanding contractual commitments related to offers for commercial loans, private placements, joint ventures and real estate are not reflected in the financial statements and may not be fulfilled. There were $2,138 ($2,166 as at December 31, 2025) of outstanding commitments as at March 31, 2026, of which the estimated disbursements will be $128 ($127 as at December 31, 2025) in 30 days, $497 ($480 as at December 31, 2025) in 31 to 365 days and $1,513 ($1,559 as at December 31, 2025) in more than one year.
‌› Event After the Reporting Period‌

Amendment to Normal Course Issuer Bid

With the approval of the Toronto Stock Exchange and the AMF, the Board of Directors has authorized the Company, on May 5, 2026, 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.
‌› Comparative Figures‌

Certain comparative figures have been reclassified to comply with the current period’s presentation. The reclassifications had no impact on the net income of the Company.

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iA Financial Corporation Inc. published this content on May 05, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 05, 2026 at 22:20 UTC.

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iA Financial Corporation Inc. is a holding company, which offers a range of life and health insurance products and other financial products and services. The Company’s segments include Insurance, Canada; Wealth Management; US Operations; Investment, and Corporate. The Insurance, Canada segment includes life and health insurance products, auto and home insurance products, creditor insurance, replacement insurance and warranties, extended warranties and other ancillary products for dealer services, and specialized products for special markets. It also engaged in offering Final Expense and Term Life products. Wealth Management segment includes products and services for savings plans, retirement funds and segregated funds, in addition to securities brokerage (including cross-border services), trust operations and mutual funds. Its US Operations segment includes life insurance products and extended warranties relating to dealer services sold in the United States.