The financial sector has been leading the charge on the TSX over the last year, with iA Financial (TSX:IAG) emerging as one of the sector’s top performers. After surging 66% in the last 12 months, iA stock now trades around $142 per share and has a market cap of $13.2 billion. At this price, it offers a 2.5% annualized dividend yield.
This solid performance might be a reflection of the company’s growing asset base, strong earnings momentum, and a business that’s executing well across its insurance and wealth management segments. But with IAG stock now priced near all-time highs, the question is whether the company can maintain its current growth trajectory over the next decade.
Let’s take a closer look at iA Financial stock’s key fundamental growth drivers and explore where it could be a decade from now.
What’s been powering iA Financial stock’s surge
One big reason for the recent climb in iA Financial stock could be the stable demand for its life and health insurance solutions, as well as its growing wealth management presence.
Even on the economic front, things have been supportive for financial stocks. Despite market volatility and concerns over U.S. tariffs and global trade tensions, the Canadian economy has held up reasonably well. iA’s exposure to both Canadian and U.S. markets has enabled it to benefit from improving vehicle inventory levels and consumer affordability in the U.S., while also riding the wave of recovery in Canada’s wealth and insurance sectors.
In fact, its assets under management and administration reached over $264 billion by the end of the first quarter of 2025, reflecting a 15% YoY (year-over-year) jump. That’s been a big confidence booster for iA Financial investors.
Strong financials backing the momentum
In the first quarter, the financial firm’s core earnings grew 19% YoY to $2.91 per share, suggesting that the business isn’t just coasting on investor optimism but is also delivering real results. iA Financial recorded gains across all three of its key segments, including insurance, wealth management, and U.S. operations.
Its wealth management segment especially performed exceptionally well, with record segregated fund sales surging by 52% from a year ago to cross $1.9 billion. Meanwhile, iA’s U.S. operations showed impressive growth last quarter, with the segment’s individual insurance sales jumping 62% YoY. And due to its disciplined approach, the company’s capital base remains strong with a solvency ratio of 132% and $1.4 billion in capital.
Where will IAG stock be 10 years from now?
At its latest investor event held in February, iA Financial laid out ambitious but achievable goals. Interestingly, the company is targeting over 10% annual growth in earnings per share and an over 17% return on equity by 2027. Also, it expects to keep generating over $650 million in organic capital this year alone, preparing for expansion through smart acquisitions and investments.
With its strong balance sheet, consistent dividend, and clear growth roadmap, iA Financial stock looks like more than just a short-term win. If it keeps executing like this, the stock could be trading at a significantly higher level a decade from now – making today’s price look like a big bargain.
