iA Financial (TSX:IAG) operates in individual insurance, individual wealth management, group insurance, group savings, retirement, and the Unites States business sector.
Diverse revenue sources
In terms of business growth, approximately 15% of the company’s premiums comes from Canadian individual insurance, 42% comes from individual wealth management, 16% comes from group insurance, 18% comes from group savings and retirement, 4% comes from general insurance operations, and 6% comes from U.S. business. By region, 4.5% of premiums comes from the Atlantic provinces, 38% comes from Quebec, 29.7% comes from Ontario, 22% comes from the Western provinces, and 5.8% comes from the United States.
The company’s individual insurance sector offers a wide range of insurance products through an extensive distribution network. The company is continually enhancing iA Financial’s product lineup to remain highly competitive in meeting clients’ changing needs. In 2020, the company improved iA Financial’s positioning with lower premiums on term products. To ensure a superior advisor and client experience, the sector also enhanced the company’s online sales tools for representatives.
In the individual wealth management sector, the company offers a broad range of savings and retirement products. iA Financial Group is also a Canadian leader in the development and distribution of segregated funds. iA Clarington Investments, a company subsidiary, offers a full line of mutual funds and is one of the largest investment management firms in the country.
The employee plans division offers a broad range of group benefits products for companies and organizations. To help manage plans more effectively and promote the health and wellness of clients, the division offers a number of services and technology tools for plan administrators, members and benefits advisors. These include a disability-management program, a drug-management program, and a health and wellness program. The sector’s efforts to improve competitiveness in 2020 included the launch of xConnect, an automated data exchange solution connecting clients’ human resources systems with those of iA Financial Group.
The company’s dealer services division distributes creditor insurance products, car loan financing, and property and casualty (P&C) products. The division’s products are offered through a Canada-wide direct distribution network. Distributors demand one-stop shopping for aftermarket needs, and iA Financial is one of the few companies that can provide it.
Special market solutions
The company’s special markets solutions segment specializes in niche insurance markets that are underserved by traditional group insurance carriers. The division primarily offers accidental death & dismemberment (AD&D) insurance, critical illness insurance, disability insurance and other specialized insurance products to employers, as well as travel medical and health insurance through distribution partners and term life insurance to alumni associations.
iA American Life Insurance represents the base for iA Financial’s U.S. life insurance operations. This division markets the company’s life insurance products through independent marketing organizations, and have the ability to customize products for larger marketing organizations. Digital enhancements to improve and simplify the sales process from both the agent and client perspectives have been an important component in the company’s ability to compete.
Overall, the intrinsic sum of parts of iA Financial far exceeds the market price of the company’s stock.
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