iA Financial Group is heading for “extraordinary growth” by 2030, according to its president, when $2 billion will be available to expand the group’s presence in the insurance and wealth management sectors.
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“The market always wants to lend us money, but we already have some. We tell the market: We have $2 billion in capital that we can use for acquisitions,” Denis Ricard said in an interview with the Journal.
The CEO and his team are currently developing the strategic plan to 2030 to present to the Board of Directors next September.
“Our field of activity is anything but a long calm river! My biggest challenge is surrounding myself with growth leaders. Because that’s the key, growth. I’m not tempted to manage a case that’s hanging around! says Mr. Ricard enthusiastically.
The one who succeeded Yvon Charest in 2018 at the helm of the public company founded in 1892 has hired 2,000 teammates over the past year to grow and replace departures. iA Financial Group now has 9,000 and has no intention of stagnating or shrinking.
“The day iA would be on the cover of the Journal for cutting 1000 jobs would be a failure. That would mean that we underperformed and gave in to pressure from shareholders. We have a performance obligation,” says the CEO, who is an actuary by profession.
diversification
The average growth of the iA Financial Group has been 10% annually for more than twenty years. This happens organically and through acquisitions. The largest, costing $1 billion, was built three years ago when the Quebec-based company got its hands on America’s IAS, which specializes in car warranties.
iA Financial Group began developing business outside of Quebec in 1982 and today generates 60% of its revenue outside of Quebec; 15% of its profits come from the United States. From an insurer, the group has evolved into a diversification of its activities, particularly in wealth management and auto dealership products, a niche in which it is number one in Canada and among the top 10 players in the United States.
Confident despite recession
While the financial crisis in 2008 caused a lot of stress in the group, iA faces the economic challenges of 2023 between inflation and a possible recession with confidence.
“I’m not nervous. Many financial institutions in the United States would have to [soient] fell before those in Canada were affected. Our financial institutions here are very well capitalized and their risk management is very strict,” says Mr. Ricard.
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