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Summary
- Insurance companies are a cog in the wheel for the financial sector as they generally have steady profits and low debt levels.
- Great-Life, one of the largest insurance companies in Canada, reported net earnings of CA$ 627 million for Q1 2023.
- iA Financial (TSX:IAG) operates across many financial segments other than insurance and has net income attributable to shareholders of CA$ 273 million.
However, accident and health insurance companies are typically the most well-recognized insurers. Many insurance companies have the reputation of having stable profits and low levels of debt. On that note, GWO and IAG (LON:ICAG) are two Canadian insurance stocks that can be examined in June 2023.
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Great-West Lifeco Inc . (TSX: TSX:GWO)
Image source: ©2023 Kalkine®; Data source: Company Reports
For the March 2023 quarter, the insurance company reported net earnings of CA$ 627 million, as opposed to CA$ 1.059 billion in the December 2022 quarter. The total revenue was CA$ 10.6 billion during the March 2023 quarter. The net income attributable to common stockholders was CA$ 595 million in the quarter.
Great-West’s operating cash flow was negative CA$ 1.034 billion during the March 2023 quarter. Great-West pays a quarterly dividend of CA$ 0.52.
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iA Financial Corp Inc. (TSX: IAG)
For Q1 2023, iA Financial reported net income attributable to shareholders of CA$ 273 million. Among this, the income attributable to common shareholders was CA$ 270 million for the quarter.
Image source: ©2023 Kalkine®; Data source: Company Reports
An increase in its dividend of 13% was reported for the quarter and strong sales across Canada and US were also announced by iA Financial. The insurance company paid a quarterly dividend of CA$ 0.675 to common shareholders in Q1 2023. For the second quarter of 2023, a dividend of CA$ 0.765 per share has been authorized by the Board of Directors.
Disclaimer:
Please note, the above content constitutes a very preliminary observation based on the industry and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.