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Sustained profitable growth driven by continued strong sales momentum

THIRD QUARTER HIGHLIGHTS – iA Financial Corporation

• Solid profitability: EPS of $2.99, trailing 12-month ROE¹ of 14.5% and annualized ROE of 16.9%
• Achievement of mid-term targets: core EPS^†† of $2.93 (+17% YoY), trailing 12-month core ROE^†† of 15.3% and annualized core ROE^†† of 16.6%
• Strong sales² momentum leading to over $4.9 billion in premiums and deposits^2,3 and nearly $250 billion in assets (total AUM² and AUA²)
• Robust solvency ratio⁴ of 140% and capital available for deployment² of $1 billion, expected to increase by $700 million on January 1, 2025⁵
• Book value per common share⁶ reaching $71.63 at September 30, 2024, up 10% over 12 months
• Dividend to common shareholders increased by 10% and renewal of NCIB program to buy back up to 5% of outstanding shares

QUEBEC CITY, Nov. 5, 2024 /CNW/ – For the third quarter ended September 30, 2024, iA Financial Corporation IAG recorded core diluted earnings per common share (EPS)^†† of $2.93, which is 17% higher than the same period in 2023. Core return on common shareholders’ equity (ROE)^†† for the trailing twelve months was 15.3%, meeting the Company’s medium-term target of 15%+. Third quarter net income attributed to common shareholders was $283 million, diluted EPS was $2.99 and ROE for the trailing twelve months was 14.5%. The solvency ratio of 140% at September 30, 2024 is well above the Company’s operating target of 120%.

“We achieved solid third quarter results, with very strong EPS growth and ROE expansion. Disciplined execution of our growth-driven strategy resulted in a 25% year-over-year increase in premiums and deposits³ in the third quarter, driven by robust sales and the acquisitions of Vericity and the Prosperity blocks of business. Sales were particularly strong for segregated funds and individual insurance in Canada and the U.S., ” commented Denis Ricard, President and CEO of iA Financial Group. “With our high level of capital available for deployment, which is expected to increase further, we will continue to invest in our growth, both organically and through acquisitions. Through our sustained growth, we will continue our track record of creating and returning value to our shareholders.”

“Third quarter results testify to our ability to generate growth through quality earnings. The strong year-over-year EPS growth is mainly due to higher expected insurance earnings, resulting from solid growth in premiums and deposits³, as well as in assets, including those from recent acquisitions,” added Éric Jobin, Executive Vice‑President, CFO and Chief Actuary. “This good profitability led to strong organic capital generation² of $180 million for the quarter, which positions us well to achieve our 600 million+ target for 2024. With our solid capital position, we are pleased to announce today a 10% increase in our dividend to common shareholders and the renewal of our share buyback program for the coming year.”

Unless otherwise indicated, the results presented in this document are in Canadian dollars and are compared with those from the corresponding period last year. 

ANALYSIS OF EARNINGS BY BUSINESS SEGMENT

Insurance, Canada

• Net income attributed to common shareholders for the Insurance, Canada segment was $95 million compared to $79 million for the same period in 2023. Net income attributed to common shareholders is comprised of core earnings^† as well as core earnings adjustments.
• Core earnings adjustments to net income totalled $11 million, mostly from acquisition-related items.
• Core earnings^† for this business segment were $106 million, higher than $91 million for the same period in 2023.
  
  The 16% increase in core earnings^† over the same period in 2023 is the net result of various items. In particular, expected insurance earnings⁷ were higher than a year ago, an increase driven by the favourable impact of price increases in various business units in the last 12 months. Other positive items included the lower impact of new insurance business⁷ from Employee Plans compared to a year ago, the favourable impact of higher distribution results on core non-insurance activities⁷ and lower core other expenses.⁷ As for core insurance experience,⁷ losses of $6 million were recorded during the quarter. At iA Auto and Home, claims associated with the heavy rainfall event that occurred in August in Quebec were partly offset by lower auto thefts and otherwise favourable summer weather. In other business units, favourable morbidity and mortality experience was offset by miscellaneous unfavourable items, including higher claims in Dealer Services.

Wealth Management

• Net income attributed to common shareholders for the Wealth Management segment was $99 million compared to $73 million for the same period in 2023. Net income attributed to common shareholders is comprised of core earnings^† as well as core earnings adjustments.
• Core earnings adjustments to net income totalled $7 million, mostly from acquisition-related items.
• Core earnings^† for this business segment were $106 million for the third quarter compared with $82 million a year ago.
  
  The 29% increase in core earnings^† over the same period in 2023 is mainly the result of good financial market performance, as well as an increase in the expected insurance earnings for segregated funds from strong net sales over the last 12 months and the increase in CSM recognized for services provided.⁸ Mortality experience was also favourable, leading to an insurance experience gain. Finally, core non-insurance activities were up, reflecting a solid performance once again from the distribution affiliates, arising mainly from higher net commissions and better margins.

US Operations

• Net income attributed to common shareholders for the US Operations segment was $21 million compared to $24 million for the same period in 2023. Net income attributed to common shareholders is comprised of core earnings^† as well as core earnings adjustments.
• Core earnings adjustments to net income totalled $10 million, mostly from acquisition-related items.
• Core earnings^† for this business segment were $31 million, which compares to $32 million for the same period in 2023.
  
  The $1 million year-over-year decrease is the net result of various items. In particular, the recent acquisitions of Vericity and the Prosperity blocks of business led to an increase in expected insurance earnings. Core insurance experience was also positive, mainly from favourable mortality experience. However, in core non-insurance activities, the unfavourable impact of lower sales in 2023 and the less favourable business mix arising from the current competitive environment was only partly offset by good sales growth in 2024. Finally, core other expenses increased following the addition of Vericity expenses, while non-recurring expenses were partially mitigated by cost-saving initiatives in Dealer Services.

Investments

• Net income attributed to common shareholders for the Investments segment was $114 million compared to a net loss of $76 million for the same period in 2023. Net income attributed to common shareholders is comprised of core earnings^† as well as core earnings adjustments.
• Core earnings adjustments to net income of $34 million for this business segment are market-related, as the impact of favourable equity, interest rate and credit spread variations were partly offset by investment property value adjustments and the unfavourable impact of the tax-exempt investment income from the Company’s multinational insurer status (CIF).⁹
• Core earnings^† for this business segment were $80 million compared to $93 million a year ago and to $91 million the previous quarter. The third quarter core earnings^† were supported by the good performance of our high-quality investment portfolio, bolstered by the favourable impact of interest rate variations. However, taxes were higher and the result from iA Auto Finance was lower due to credit losses and an increased allowance for credit losses.¹⁰

Corporate

• The net loss attributed to common shareholders for the Corporate segment was $46 million compared to $45 million for the same period in 2023. The net loss attributed to common shareholders is comprised of core losses^† as well as core earnings adjustments.
• Core losses adjustments to net loss for this business segment from acquisition-related items totalled $1 million pre-tax, which is less than $500,000 after tax.
• This segment recorded core losses^† from after-tax expenses of $46 million, which compares with $42 million in the third quarter of 2023. This quarter’s result is derived from core other expenses of $60 million before taxes, which is in line with the 2024 quarterly expectation of $65 million plus or minus $5 million. The favourable outcome for corporate expenses is the result of ongoing strong emphasis on operational efficiency, cost-conscious execution and a disciplined approach to project and workforce management.

RECONCILIATION OF NET INCOME ATTRIBUTED TO COMMON SHAREHOLDERS AND CORE EARNINGS^†

The following table presents net income attributed to common shareholders and the adjustments that account for the difference between net income attributed to common shareholders and core earnings.^†

Core earnings^† of $277 million in the third quarter are derived from net income attributed to common shareholders of $283 million and a total adjustment of $6 million from:

• the favourable market-related impacts that differ from management’s expectations, totalling $34 million, as the impact of favourable equity, interest rate and credit spread variations was partly offset by investment property value adjustments and the unfavourable impact from the CIF;
• a total of $6 million related to the Prosperity and Vericity acquisitions ($3 million), the charge for the Surex minority shareholders’ sell option ($2 million) and small restructuring charges ($1 million);
• the expenses associated with acquisition-related intangible assets of $19 million; and
• the impact of non-core pension expenses¹¹ of $3 million.

Contractual Service Margin (CSM)¹³ – During the third quarter, the CSM increased organically by $100 million due to the positive impact of new insurance business of $187 million, organic financial growth of $83 million and an insurance experience gain of $14 million. These favourable items were partly offset by the CSM recognized in earnings of $184 million, which was 21% higher than a year ago. Non-organic items led to an increase of $104 million during the third quarter, mainly due to the positive impacts of macroeconomic variations and the acquisition of two blocks of business from Prosperity Life Group. As a result, the total CSM increased by $204 million during the quarter to stand at $6,675 million at September 30, 2024, an increase of 15% over the last twelve months.

An analysis of results according to the financial statements and additional analysis are presented in the Management’s Discussion and Analysis as at September 30, 2024. They supplement the information presented above by providing additional indicators for assessing financial performance.

Business growth – Sales momentum continued to be strong in both Canada and the U.S. during the third quarter, with almost every business unit recording good sales growth. Once again this quarter, strong sales were posted by Individual Insurance, Canada, segregated fund inflows were solid and individual insurance sales reached record levels in the U.S. The strong business growth propelled net premiums, premium equivalents and deposits to over $4.9 billion, representing a solid increase of 25% compared to the same period in 2023, and total assets under management and total assets under administration to nearly $250 billion, representing an increase of 22% over the last twelve months.

INSURANCE, CANADA

• In Individual Insurance, third quarter sales totalled $103 million, recording another solid performance with a 7% increase over a strong quarter a year earlier. This very good result reflects the strength of all our distribution networks, the excellent performance of our digital tools, as well as our comprehensive and distinctive range of products. Sales were notably strong for participating insurance and living benefit products. The Company maintained the leading position in the Canadian market for the number of policies issued.¹⁴
• In Group Insurance, third quarter sales of $18 million in Employee Plans were significantly higher than the $10 million recorded during the same quarter last year, largely attributed to the higher volume of mid-to-large group sales. Net premiums, premium equivalents and deposits increased by 9% year over year, benefiting from good sales and premium increases on renewals. Special Markets sales were 14% higher than a year earlier, reaching $97 million, driven by strong sales growth in travel medical insurance products.
• For Dealer Services, total sales ended the third quarter at $197 million, 2% higher than the same period in 2023. This growth was essentially supported by sales of extended warranties and ancillary products. Note that the impact of the temporary outage at CDK Global at the end of the second quarter was immaterial on third quarter sales.
• At iA Auto and Home, direct written premiums reached $164 million in the third quarter, a strong increase of 15% compared to the same period last year. This reflects the success in generating new sales and the impact of recent premium increases.

WEALTH MANAGEMENT

• In Individual Wealth Management, the Company continued to rank first in Canada in gross and net segregated fund sales.¹⁵ Gross sales of segregated funds amounted to more than $1.3 billion for the third quarter, a significant increase of 51% year over year, and net sales were once again particularly strong at $781 million. This robust performance was driven notably by the strength of our distribution networks. Additionally, the favourable performance of financial markets continued to increase client optimism towards riskier asset classes with higher return potential compared to guaranteed investments. Reciprocally, sales of insured annuities and other savings products totalled $483 million in the third quarter, compared to a very strong quarter of $618 million a year earlier. Mutual fund gross sales for the quarter amounted to $385 million, 33% higher than the same period in 2023, with net outflows of $163 million.
• Group Savings and Retirement sales for the third quarter totalled $900 million and were 62% higher than a year earlier. This solid performance was driven by strong sales of both insured annuities and accumulation products.

US OPERATIONS

• In Individual Insurance, record sales of US$68 million in the third quarter were 55% higher than a year earlier. This solid result, driven by good results in the final expense and middle/family markets and the addition of sales from the Vericity acquisition, confirms our potential for strong growth in the U.S. life insurance market, both organically and through acquisitions.
• In Dealer Services, third quarter sales were up 15% over the same period last year, reaching US$286 million. This good result reflects the quality of our products and services. Also, dealers are emphasizing supplementary products sold with vehicles (F&I products) amid improved consumer affordability resulting from lower interest rates and reduced vehicle prices. Note that sales that were delayed to the third quarter due to the temporary outage at CDK Global at the end of the second quarter totalled around US$10 million.

ASSETS UNDER MANAGEMENT AND ASSETS UNDER ADMINISTRATION

Assets under management and administration ended the third quarter at around $250 billion, up 22% over the last 12 months and up 6% during the quarter, mainly driven by favourable market conditions and high net fund inflows.

NET PREMIUMS, PREMIUM EQUIVALENTS AND DEPOSITS

Net premiums, premium equivalents and deposits exceeded $4.9 billion in the third quarter, recording a solid increase of 25% over the same period last year. All business units contributed to this strong performance, particularly Individual Wealth Management and Group Savings and Retirement.

FINANCIAL POSITION

The Company’s solvency ratio was 140% at September 30, 2024, compared with 141% at the end of the previous quarter and 145% a year earlier. This result is well above the Company’s solvency ratio operating target of 120%. The one percentage point decrease during the third quarter is the result of specific items. These include capital deployment through share buybacks (NCIB), the acquisition of two blocks of business from Prosperity Life Group and IT investments. They also include capital management initiatives, namely the $125 million redemption of Industrial Alliance Insurance and Financial Services Inc. (“iA Insurance”) outstanding preferred shares. These items were partly offset by the favourable impact of organic capital generation, which continues to be strong at $180 million, and the positive impact of macroeconomic variations. The Company’s financial leverage ratio^†† of 15.3% at September 30, 2024 compares favourably to 16.4% at the end of the previous quarter.

Organic capital generation and capital available for deployment – The Company organically generated $180 million in additional capital during the third quarter. After nine months, $485 million has been generated, which is in line with projections to exceed the minimum annual target of $600 million in 2024. At September 30, 2024, the capital available for deployment was assessed at $1.0 billion. In addition, as detailed below in this section, if adopted as published the AMF’s proposed revisions to the Capital Adequacy Requirements Guideline – Life and Health Insurance (CARLI) are expected to increase the Company’s capital available for deployment by around $700 million on January 1, 2025.

Proposed changes to AMF Capital Adequacy Requirements Guideline – On September 19, 2024, the Autorité des marchés financiers du Québec (AMF) published a consultation concerning a revised Capital Adequacy Requirements Guideline – Life and Health Insurance (CARLI), expected to take effect on January 1, 2025. This consultation ended on October 22, 2024. If adopted as published, iA Financial Corporation would no longer be subject to the intervention target ratios, while still being subject to minimum ratios. This is anticipated to positively impact iA’s financial flexibility, and the revised guideline is expected to increase the Company’s capital available for deployment by around $700 million, with no material impact on the solvency ratio level. Note that the proposed change related to intervention target ratios would not impact Industrial Alliance Insurance and Financial Services Inc.

Among other changes, the proposed CARLI guideline includes revisions related to the regulatory capital requirements for segregated fund guarantees. In this regard, a transition period is authorized for the first two quarters of 2025 when insurers can apply the previous version of the guideline. Analyses will be performed in anticipation of this transition period to assess the impacts of these other changes, which are expected to be more limited than those resulting from the removal of intervention target ratios mentioned above.

Book value – The book value per common share was $71.63 at September 30, 2024, up 2% during the quarter and 10% during the last twelve months.

Normal Course Issuer Bid (NCIB) – During the third quarter of 2024, the Company repurchased and cancelled 1,379,860 outstanding common shares for a total value of $123 million under the NCIB program. A total of 7,004,964 shares, or approximately 6.94% of the issued and outstanding common shares as at October 31, 2023, were repurchased under the current program between November 14, 2023 and September 30, 2024.

Dividend – The Company paid a quarterly dividend of $0.8200 per share to common shareholders in the third quarter of 2024. The Board of Directors approved a quarterly dividend of $0.9000 per share payable during the fourth quarter of 2024, representing an increase of $0.08 per share or 10% compared to the dividend paid in the previous quarter. This dividend is payable on December 16, 2024 to the shareholders of record at November 22, 2024.

Dividend Reinvestment and Share Purchase Plan – Registered shareholders wishing to enrol in iA Financial Corporation’s Dividend Reinvestment and Share Purchase Plan (DRIP) so as to be eligible to reinvest the next dividend payable on December 16, 2024 must ensure that the duly completed form is delivered to Computershare no later than 4:00 p.m. on November 15, 2024. Enrolment information is provided on iA Financial Group’s website at ia.ca, under the Dividends section. Common shares issued under iA Financial Corporation’s DRIP will be purchased on the secondary market and no discount will be applicable.

Appointment – Mr. Nicolas Darveau-Garneau, who has been a board member of iA Financial Corporation since 2018, was appointed strategic advisor in the field of artificial intelligence applied to improving the client experience. As a result, he stepped down from the Board of Directors on October 1, 2024, to focus on this new role. Mr. Darveau-Garneau has over 30 years of experience in the information technology field, especially in digital innovation in businesses. The Board of Directors of iA Financial Corporation now comprises 14 directors.

Acquisition of two blocks of business from Prosperity Life Group – On August 7, 2024, iA Financial Group completed the acquisition of two blocks of business from Prosperity Life Group. The insurance blocks purchased by iA Financial Group primarily consist of final expense products, as well as term life insurance, totalling over 115,000 policies and US$100 million in annual premiums. This transaction continues to enhance iA’s footprint in the United States, in addition to being accretive from the first year, on both a core and reported basis.

Acquisition of assets of Laurentian Bank Securities’ retail full-service investment broker division – On August 6, 2024, iA Financial Group completed the acquisition of assets of the retail full-service investment broker division of Laurentian Bank Securities Inc.  (LBS). This division of LBS has over $2 billion in assets under administration. As a result of the transaction, approximately 15,000 client accounts have been transferred, with some 25 advisors joining iAPW’s network, marking another important milestone for iA Private Wealth.

Strategic partnership with Clutch – On July 5, 2024, iA Financial Group announced a strategic investment in Toronto-based business Clutch Technologies Inc., which is one of Canada’s largest retailers in online sales of pre-owned vehicles. This investment enables iA to add online sales as a new product distribution channel to its current extensive network.

Preferred share redemption – On July 29, 2024, iA Insurance completed the redemption of its 5,000,000 outstanding Non-Cumulative Class A Preferred Shares Series B with a principal amount of $125 million. This repurchase follows the issuance of $350 million Limited Recourse Capital Notes in June 2024 and is part of the capital management actions aimed at optimizing the capital structure.

End of reporting issuer status of iA Insurance – Following the redemption of its Non-Cumulative Class A Preferred Shares Series B on July 29, 2024, iA Insurance ceased to be a reporting issuer in accordance with an order granted under the securities legislation of Quebec and Ontario. Therefore, from the third quarter onward, iA Insurance is no longer subject to continuous disclosure requirements under securities legislation, including the requirement to file its financial statements.

Philanthropic contest – On September 10, 2024, the eighth edition of the Company’s philanthropic contest was launched. A total of $500,000 in donations will be shared by charities addressing societal issues. The winners will be announced between December 10 and December 13, 2024.

Subsequent to the third quarter:

• Investor Event – iA Financial Group announced that it will host an Investor Event on February 24, 2025. The event will take place in Toronto and will include an update on the Company’s growth strategy, including a deep dive on U.S. operations and key objectives of the Canadian businesses. Investors and financial analysts are welcome to attend either in person or virtually. For additional information, please refer to the press release dated October 17, 2024, which can be found on our website at ia.ca.
• NCIB renewal – With the approval of the Toronto Stock Exchange and the Autorité des marchés financiers, the Company could purchase, under a Normal Course Issuer Bid between November 14, 2024 and November 13, 2025, up to 4,694,894 common shares, representing approximately 5% of its 93,897,897 common shares issued and outstanding at October 31, 2024. The purchases will be made at market price at the time of purchase through the facilities of the Toronto Stock Exchange or an alternative Canadian trading system, in accordance with market rules and policies. The common shares repurchased will be cancelled.

OUTLOOK

Medium-term guidance for iA Financial Corporation

• Core earnings per common share^††: target of 10%+ annual average growth
• Core return on common shareholders’ equity (ROE)^††: target of 15%+
• Solvency ratio operating target: target of 120%
• Organic capital generation: target of $600+ million in 2024
• Dividend payout ratio based on core earnings^††: target range of 25% to 35%

The Company’s outlook, including the market guidance provided and expectations as to the increase in capital available for deployment, constitutes forward-looking information within the meaning of securities laws. Although the Company believes that its outlook is reasonable, such statements involve risks and uncertainties and undue reliance should not be placed on such statements. Factors that could cause actual results to differ materially from expectations include, but are not limited to: insurance, market, credit, liquidity, strategic and operational risks. In the case of the increase in capital available for deployment resulting from the proposed changes to the CARLI Guideline, such factors also include required capital target adjustments and applicable internal approvals. In addition, certain material factors or assumptions are applied in preparing the Company’s outlook, including but not limited to: accuracy of estimates, assumptions and judgments under applicable accounting policies, and no material change in accounting standards and policies applicable to the Company; no material variation in interest rates; no significant changes to the Company’s effective tax rate; no material changes in the level of the Company’s regulatory capital requirements; availability of options for deployment of excess capital; credit experience, mortality, morbidity, longevity and policyholder behaviour being in line with actuarial experience studies; investment returns being in line with the Company’s expectations and consistent with historical trends; different business growth rates per business unit; no unexpected changes in the economic, competitive, insurance, legal or regulatory environment or actions by regulatory authorities that could have a material impact on the business or operations of iA Financial Group or its business partners; no unexpected change in the number of shares outstanding; and the non-materialization of risks or other factors mentioned or discussed elsewhere in this document. The Company’s outlook serves to provide shareholders, market analysts, investors, and other stakeholders with a basis for adjusting their expectations with regard to the Company’s performance throughout the year and may not be appropriate for other purposes. Additional information about risk factors and assumptions applied may be found in the “Forward-looking Statements” section of this document.

______________________________________________________________________________________________________________________________________________________________________

NON-IFRS AND ADDITIONAL FINANCIAL MEASURES

iA Financial Corporation (hereinafter referred to as the “Company”) reports its financial results and statements in accordance with International Financial Reporting Standards (“IFRS”). The Company also publishes certain financial measures or ratios that are not presented in accordance with IFRS. The Company uses non-IFRS and other financial measures when evaluating its results and measuring its performance. The Company believes that such measures provide additional information to better understand its financial results and assess its growth and earnings potential, and that they facilitate comparison of the quarterly and full year results of the Company’s ongoing operations. Since such non-IFRS and other financial measures do not have standardized definitions and meaning, they may differ from similar measures used by other institutions and should not be viewed as an alternative to measures of financial performance, financial position or cash flow determined in accordance with IFRS. The Company strongly encourages investors to review its financial statements and other publicly filed reports in their entirety and not to rely on any single financial measure.

Non-IFRS financial measures include core earnings (losses).

Non-IFRS financial ratios include core earnings per common share (core EPS); core return on common shareholders’ equity (core ROE); core effective tax rate; dividend payout ratio, core; and financial leverage ratio.

Supplementary financial measures include return on common shareholders’ equity (ROE); components of the CSM movement analysis (organic CSM movement, impact of new insurance business, organic financial growth, insurance experience gains (losses), impact of changes in assumptions and management actions, impact of markets, and currency impact); components of the drivers of earnings (in respect of both net income attributed to common shareholders and core earnings); assets under management; assets under administration; capital available for deployment; dividend payout ratio; total payout ratio (trailing 12 months); organic capital generation; sales; net premiums; and premium equivalents and deposits.

For relevant information about the non-IFRS measures, including a reconciliation of non-IFRS financial measures to the most directly comparable IFRS measure used in this document, see the “Non-IFRS and Additional Financial Measures” section in the Management’s Discussion and Analysis for the period ending September 30, 2024, which is hereby incorporated by reference and is available for review on SEDAR+ at sedarplus.ca or on iA Financial Group’s website at ia.ca.

A reconciliation of net income attributed to common shareholders to core earnings by business segment is included below. See “Reconciliation of Net Income Attributed to Common Shareholders and Core Earnings” above for the reconciliation on a consolidated basis.

Reconciliation of Select Non-IFRS Financial Measures

Forward-Looking Statements

This document may contain statements relating to strategies used by iA Financial Group or statements that are predictive in nature, that depend upon or refer to future events or conditions, or that include words such as “may”, “will”, “could”, “should”, “would”, “suspect”, “expect”, “anticipate”, “intend”, “plan”, “believe”, “estimate”, and “continue” (or the negative thereof), as well as words such as “objective”, “goal”, “guidance”, “outlook” and “forecast”, or other similar words or expressions. Such statements constitute forward-looking statements within the meaning of securities laws. In this document, forward-looking statements include, but are not limited to, information concerning possible or assumed future operating results. These statements are not historical facts; they represent only expectations, estimates and projections regarding future events and are subject to change.

Although iA Financial Group believes that the expectations reflected in such forward-looking statements are reasonable, such statements involve risks and uncertainties, and undue reliance should not be placed on such statements. In addition, certain material factors or assumptions are applied in making forward-looking statements, and actual results may differ materially from those expressed or implied in such statements.

• Material factors and risks that could cause actual results to differ materially from expectations include, but are not limited to: general business and economic conditions; level of competition and consolidation and ability to adapt products and services to market or customer changes; information technology, data protection, governance and management, including privacy breach, and information security risks, including cyber risks; level of inflation; performance and volatility of equity markets; interest rate fluctuations; hedging strategy risks; accuracy of information received from counterparties and the ability of counterparties to meet their obligations; unexpected changes in pricing or reserving assumptions; the occurrence of natural or man-made disasters, international conflicts, pandemic diseases (such as the COVID-19 pandemic) and acts of terrorism; iA Financial Group liquidity risk, including the availability of funding to meet financial liabilities as they come due; mismanagement or dependance on third-party relationships in a supply chain context; ability to attract, develop and retain key employees; risk of inappropriate design, implementation or use of complex models; fraud risk; changes in laws and regulations, including tax laws; contractual and legal disputes; actions by regulatory authorities that may affect the business or operations of iA Financial Group or its business partners; changes made to capital and liquidity guidelines; risks associated with the regional or global political and social environment; climate-related risks including extreme weather events or longer-term climate changes and the transition to a low-carbon economy; iA Financial Group’s ability to satisfy stakeholder expectations on environmental, social and governance issues; and downgrades in the financial strength or credit ratings of iA Financial Corporation or its subsidiaries.
  
  
• Material factors and assumptions used in the preparation of financial outlooks include, but are not limited to: accuracy of estimates, assumptions and judgments under applicable accounting policies, and no material change in accounting standards and policies applicable to the Company; no material variation in interest rates; no significant changes to the Company’s effective tax rate; no material changes in the level of the Company’s regulatory capital requirements; availability of options for deployment of excess capital; credit experience, mortality, morbidity, longevity and policyholder behaviour being in line with actuarial experience studies; investment returns being in line with the Company’s expectations and consistent with historical trends; different business growth rates per business unit; no unexpected changes in the economic, competitive, insurance, legal or regulatory environment or actions by regulatory authorities that could have a material impact on the business or operations of iA Financial Group or its business partners; no unexpected change in the number of shares outstanding; and the non‑materialization of risks or other factors mentioned or discussed elsewhere in this document or found in the “Risk Management” section of the Company’s Management’s Discussion and Analysis for 2023 that could influence the Company’s performance or results.

Economic and financial uncertainty in a context of geopolitical tensions – Unfavourable economic conditions and financial instability are causing some concern, with persistent inflation, further deterioration in the credit market due to a high-rate environment, rising defaults and declining realizable value, and higher unemployment. The war in Ukraine, the Israel-Hamas conflict spreading to other regions, and the strategic competition between the United States and China are also causing instability in global markets. In addition, 2024 is a record year for elections in 50 countries, including the United States. These events, among others, could lead to reduced consumer and investor confidence, significant financial volatility and more limited growth opportunities, potentially affecting the Company’s financial outlook, results and operations.

Additional information about the material factors that could cause actual results to differ materially from expectations and about material factors or assumptions applied in making forward-looking statements may be found in the “Risk Management” section of the Management’s Discussion and Analysis for 2023, the “Management of Risks Associated with Financial Instruments” note to the audited consolidated financial statements for the year ended December 31, 2023 and elsewhere in iA Financial Group’s filings with the Canadian Securities Administrators, which are available for review at sedarplus.ca.

The forward-looking statements in this document reflect iA Financial Group’s expectations as of the date of this document. iA Financial Group does not undertake to update or release any revisions to these forward‑looking statements to reflect events or circumstances after the date of this document or to reflect the occurrence of unanticipated events, except as required by law.

GENERAL INFORMATION

Documents Related to the Financial Results

For a detailed discussion of iA Financial Corporation’s third quarter results, investors are invited to consult the Management’s Discussion and Analysis for the quarter ended September 30, 2024, the related financial statements and accompanying notes and the Financial Information Package, all of which are available on the iA Financial Group website at ia.ca under About iA, in the Investor Relations/Financial Reports section and on SEDAR+ at sedarplus.ca.

Conference Call

Management will hold a conference call to present iA Financial Group’s third quarter results on Wednesday, November 6, 2024 at 9:30 a.m. (ET). To listen to the conference call, choose one of the options below:

About iA Financial Group

iA Financial Group is one of the largest insurance and wealth management groups in Canada, with operations in the United States. Founded in 1892, it is an important Canadian public company and is listed on the Toronto Stock Exchange under the ticker symbol IAG (common shares).

SOURCE iA Financial Group

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VANCOUVER, British Columbia, Nov. 05, 2024 (GLOBE NEWSWIRE) — Calibre Mining Corp. CXBCXBMF (“Calibre” or the “Company”) announces financial and operating results for the three months (“Q3”) and nine months (“YTD”) ended September 30, 2024. Consolidated Q3 and YTD 2024 filings can be found at www.sedarplus.ca and on the Company’s website at www.calibremining.com. All figures are expressed in U.S. dollars unless otherwise stated.

Darren Hall, President and Chief Executive Officer of Calibre, stated: “As previously reported, the Company delivered 46,076 ounces in the quarter and 166,200 ounces year to date. Consolidated Q4 production is expected to be the strongest of the year, delivering 70,000 – 80,000 ounces, driven by Nicaragua’s Q4 mine plans which are tracking and plan for significantly higher ore tonnes mined. After increasing ore haulage to Libertad by 30% to 3,000 tonnes per day, we forecast a stockpile build of approximately 30,000 ounces which will be processed in 2025.

The Valentine team continues to make significant progress with construction completion at 81% at the end of September and we remain on track to deliver first gold during Q2 2025. I am pleased with the increased focus, and we are confidently heading toward mechanical and electrical completion in early Q1, 2025.

The Valentine Gold Mine and surrounding property offers an impressive 5-million-ounce resource base and numerous discovery opportunities. Previously disclosed results at Valentine indicate robust growth potential below and adjacent to existing Mineral Resources. Our extensive, multi-rig drill program is focused on high priority targets beyond the originally explored 6 km section of defined reserves/resources of the 32 km long Valentine Lake Shear Zone to unlock the significant resource expansion and discovery potential across the property.”

YTD & Q3 2024 Highlights

• Construction of the multi-million-ounce Valentine Gold Mine surpasses 81% construction with a remaining cost to complete on an incurred basis of C$197 million as at September 30, 2024 and remains on track for gold production in Q2 2025;
  • Tailings Management Facility is complete and ready to receive water;
  • CIL leaching area tanks construction is nearing completion;
  • Reclaim tunnel and coarse ore stockpile construction is progressing;
  • Primary crusher installation is well advanced and overland conveyor construction has commenced; and
  • Pre-commissioning is underway;
• With approximately C$300 million in cash (US$115.8-million and restricted cash US$100-million) at September 30, 2024, Valentine’s initial project capital remains fully financed;
• Bolstered cash position as part of our capital management program with $55 million to be received from an additional gold prepayment arrangement whereby Calibre will physically deliver an additional 20,000 ounces of gold (2,500 ounces of gold per month at $2,816 per ounce) from May 2025 to December 2025;
• Calibre Strengthens its Executive Leadership Team with the Appointment of Chief Operating Officer and Vice President of Technical Services, Nicaragua;
• Expanded the Valentine Gold Mine (“Valentine”) resource expansion and discovery drill program with a 100,000 metre drill program, in addition to the 60,000 metre program already in place at the Leprechaun and Marathon deposits;
• Received the Federal Environmental Assessment approval for the third open pit, the Berry Pit at Valentine scheduled to commence construction activities in Q4 2024;
• Ore control drilling results at the Marathon Pit at Valentine yielded 44% additional gold on 47% higher grades than modelled in the 2022 Mineral Reserve statement, increasing confidence of the deposit as the Company advances toward first gold in Q2 2025;
• New Discovery along the VTEM Gold Corridor and continued step out drilling intercepts high-grade gold mineralization at the Talavera deposit, both located within the Limon mine complex in Nicaragua, reinforcing Limon’s ability to continually deliver compelling results, leading to new discoveries and resource expansion:
  • 13.26 g/t gold over 4.9 metres ETW including 33.50 g/t gold over 1.2 metres ETW; and
  • 6.38 g/t gold over 10.5 metres ETW;
• Continued to intercept high grade gold mineralization from the resource conversion and expansion program within the Guapinol open pit area at the Eastern Borosi mine in Nicaragua, reinforcing the potential for mine life extension:
  • 13.24 g/t gold over 5.8 metres ETW including 18.52 g/t gold over 4.0 metres ETW; and
  • 9.24 g/t gold over 6.2 metres ETW including 17.45 g/t gold over 3.1 metres ETW;
• Discovered additional near surface, above reserve grade gold mineralization at the Pan Mine (“Pan”) in Nevada, demonstrating the potential to increase resources, grade and mine life around Pan:
  • 0.45 g/t gold over 117.4 meres ETW; and
  • 0.56 g/t gold over 59.4 metres including 1.31 g/t gold over 9.1 metres ETW;
• Consolidated gold sales of 46,076 ounces; Nicaragua 36,427 ounces and Nevada 9,649 ounces;
• Consolidated TCC¹ of $1,580/oz; Nicaragua $1,615/oz and Nevada $1,451/oz;
• Consolidated AISC¹ of $1,946/oz; Nicaragua $1,880/oz and Nevada $1,813/oz; and
• Cash and restricted cash of $115.8 million and $100.0 million, respectively, as at September 30, 2024.

YTD 2024 Gold Sales and Cost Metrics

• Consolidated gold sales of 166,200 ounces grossing $374.9 million in revenue, at an average realized gold price¹ of $2,256/oz; Nicaragua 140,646 ounces and Nevada 25,554 ounces;
• Consolidated TCC¹ of $1,379/oz; Nicaragua $1,364/oz and Nevada $1,463/oz;
• Consolidated AISC¹ of $1,656/oz; Nicaragua $1,554/oz and Nevada $1,734/oz; and
• Cash provided by operating activities of $88.8 million.

Click here to learn more about the Valentine Gold Mine – Building Atlantic Canada’s Largest Open Pit Gold Mine

Installation of the Primary Crusher – September 2024

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/a6073327-6b82-4aaf-bf52-e1cb2221d7b4

CONSOLIDATED RESULTS: Q3 and Nine Months Ended 2024

Consolidated Results²

Operating Results

2024 REVISED GUIDANCE

*Initial project capital at the Valentine Gold Mine not included

Given Calibre’s proven track record, the Company will continue to reinvest into exploration and growth with over 160,000 metres of drilling and development of new satellite deposits across its asset portfolio.

Consolidated Q4 production is expected to be 70,000 – 80,000 ounces, while TCC and AISC are forecast to be lower. The stronger Q4 outlook is driven by Nicaragua’s mine plans which are tracking and plan for significantly higher ore tonnes mined. After increasing ore haulage to Libertad by 30% to 3,000 tonnes per day we forecast a stockpile build of approximately 30,000 ounces which will be processed in 2025.

Exploration activities include multi-rig diamond, RC and RAB drilling in Newfoundland, Nevada and Nicaragua along with several geo-science initiatives through the exploration pipeline. Growth capital includes new underground development and open pit mine development, leach pad expansion, waste stripping and land acquisition.

Since acquiring the Nicaraguan assets in October 2019, the Nevada assets in 2022, and the Newfoundland & Labrador assets in 2024, Calibre has consistently reinvested in mine development and exploration programs. These investments have led to the discovery of new deposits and growth in both production and Mineral Reserves. This progress positions Calibre well to diversify its portfolio and enhance profitability as it expands its operations into Canada with the Valentine Gold Mine anticipated to deliver first gold during Q2 2025.

The Company’s mineral endowment includes 4.1 million ounces of Reserves, 8.6 million ounces of Measured and Indicated Resources (inclusive of Mineral Reserves), and 3.6 million ounces of Inferred Resources, as detailed in the press release dated March 12, 2024.

Calibre held a Q3 and YTD 2024 Production and Valentine Gold Mine Construction update conference call on October 18, 2024, please visit the Calibre Mining website here, to access the replay of the conference call.

Qualified Person

The scientific and technical information contained in this news release was approved by David Schonfeldt P.GEO, Calibre Mining’s Corporate Chief Geologist and a “Qualified Person” under National Instrument 43-101.

About Calibre

Calibre is a Canadian-listed, Americas focused, growing mid-tier gold producer with a strong pipeline of development and exploration opportunities across Newfoundland & Labrador in Canada, Nevada and Washington in the USA, and Nicaragua. Calibre is focused on delivering sustainable value for shareholders, local communities and all stakeholders through responsible operations and a disciplined approach to growth. With a strong balance sheet, a proven management team, strong operating cash flow, accretive development projects and district-scale exploration opportunities Calibre will unlock significant value.

ON BEHALF OF THE BOARD

“Darren Hall”

Darren Hall, President & Chief Executive Officer

For further information, please contact:
Ryan King
Senior Vice President, Corporate Development & IR
T: 604.628.1010
E: calibre@calibremining.com
W: www.calibremining.com

Calibre’s head office is located at Suite 1560, 200 Burrard St., Vancouver, British Columbia, V6C 3L6.

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The Toronto Stock Exchange has neither reviewed nor accepts responsibility for the adequacy or accuracy of this news release.

Notes

(1)    NON-IFRS FINANCIAL MEASURES

Calibre has included certain non-IFRS measures as discussed below. The Company believes that these measures, in addition to conventional measures prepared in accordance with IFRS, provide investors with an improved ability to evaluate the underlying performance of the Company. These non-IFRS measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. These measures do not have any standardized meaning prescribed under IFRS, and therefore may not be comparable to other issuers.

TCC per Ounce of Gold: TCC include production costs, royalties, production taxes, refinery charges, and transportation charges. Production costs consist of mine site operating costs such as mining, processing, local administrative costs (including stock-based compensation related to mine operations) and current inventory write-downs, if any. Production costs are exclusive of depreciation and depletion, reclamation, capital and exploration costs. TCC are net of by-product silver sales and are divided by gold ounces sold to arrive at a per ounce figure.

AISC per Ounce of Gold:   AISC is a performance measure that reflects the total expenditures that are required to produce an ounce of gold from current operations. While there is no standardized meaning of the measure across the industry, the Company’s definition is derived from the definition as set out by the World Gold Council in its guidance dated June 27, 2013 and November 16, 2018, respectively. The World Gold Council is a non-regulatory, non-profit organization established in 1987 whose members include global senior mining companies. The Company believes that this measure is useful to external users in assessing operating performance and the ability to generate free cash flow from operations.

Calibre defines AISC as the sum of TCC, corporate general and administrative expenses (excluding one-time charges), reclamation accretion related to current operations and amortization of asset retirement obligations (“ARO”), sustaining capital (capital required to maintain current operations at existing production levels), lease repayments, and exploration expenditures designed to increase resource confidence at producing mines. AISC excludes capital expenditures for significant improvements at existing operations deemed to be expansionary in nature, exploration and evaluation related to resource growth, rehabilitation accretion not related to current operations, financing costs, debt repayments, and taxes. Total AISC is divided by gold ounces sold to arrive at a per ounce figure

Average Realized Price per Ounce Sold: Average Realized Gold Price Per Ounce Sold is intended to enable management to understand the average realized price of gold sold in each reporting period after removing the impact of non-gold revenues and by-produce credits, which in the Company’s case are not significant, and to enable investors to understand the Company’s financial performance based on the average realized proceeds of selling gold production in the reporting period. Average Realized Gold Price Per Ounce Sold is a common performance measure that does not have any standardized meaning. The most directly comparable measure prepared in accordance with IFRS is revenue from gold sales.

Adjusted Net Earnings: Adjusted Net Earnings and Adjusted Net Earnings Per Share – Basic exclude a number of temporary or one-time items considered exceptional in nature and not related to the Company’s core operation of mining assets or reflective of recurring operating performance. Management believes Adjusted Net Earnings may assist investors and analysts to better understand the current and future operating performance of the Company’s core mining business. Adjusted Net Earnings and Adjusted Net Earnings Per Share do not have a standard meaning under IFRS. They should not be considered in isolation, or as a substitute for measures of performance prepared in accordance with IFRS and are not necessarily indicative of earnings from mine operations, earnings, or cash flow from operations as determined under IFRS.

Cash From Operating Activities Before Changes in Working Capital: Cash from Operating Activities before Changes in Working Capital is a non-IFRS measure with no standard meaning under IFRS, which is calculated by the Company as net cash from operating activities less working capital items. The Company believes that Net Cash from Operating Activities before Changes in Working Capital, which excludes these non-cash items, provides investors with the ability to better evaluate the operating cash flow performance of the Company.

Net Debt and Adjusted Net Debt: The Company believes that in addition to conventional measures prepared in accordance with IFRS, the Company and certain investors and analysts use net debt to evaluate the Company’s performance. Net debt does not have any standardized meaning prescribed under IFRS, and therefore it may not be comparable to similar measures employed by other companies. This measure is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performances prepared in accordance with IFRS. Net debt is calculated as the sum of the current and non-current portions of loans and borrowings, net of the cash and cash equivalent balance as at the balance sheet date. Adjusted Net Debt is calculated as Net Debt less fair value and other non-cash adjustments that will not result in a cash outflow to the Company. The Company believes that Adjusted Net Debt provides a better understanding of the Company’s liquidity.

EBITDA and Adjusted EBITDA: The Company believes that certain investors use the EBITDA and the adjusted EBITDA (“Adjusted EBITDA”) measures to evaluate the Company’s performance and ability to generate operating cash flows to service debt and fund capital expenditures. EBITDA and Adjusted EBITDA do not have a standardised meaning as prescribed under IFRS and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. The Company calculates EBITDA as earnings or loss before taxes for the period excluding depreciation and depletion and finance costs. EBITDA excludes the impact of cash costs of financing activities and taxes and the effects of changes in working capital balances and therefore is not necessarily indicative of operating profit or cash flow from operations as determined under IFRS. Adjusted EBITDA is calculated by excluding one-off costs or credits relating to non-routine transactions from EBITDA that are not indicative of recurring operating performance. Management believes this additional information is useful to investors in understanding the Company’s ability to generate operating cash flow by excluding from the calculation these non-cash and cash amounts that are not indicative of the recurring performance of the underlying operations for the reporting periods.

Adjusted Net Debt to Adjusted EBITDA: The Adjusted Net Debt to Adjusted EBITDA measures provide investors and analysts with additional transparency about the Company’s liquidity position, specifically, the Company’s ability to generate sufficient operating cash flows to meet its mandatory interest obligations and pay down its outstanding debt balance in full at maturity. This measure is a Non-IFRS measure and it is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. The calculation of Adjusted Net Debt is shown above.

TCC and AISC per Ounce of Gold Sold Reconciliations

The tables below reconcile TCC and AISC for the three months ended September 30, 2024 and 2023.

A table accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/12f215d3-2509-46eb-8dbe-d3166260c70f

1. Sustaining capital expenditures are shown in the Growth and Sustaining Capital Table in the Q3 2024 MD&A dated September 30, 2024.

A table accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/d032d456-8d54-4969-91bb-1cedb6c0a415

1. Sustaining capital expenditures are shown in the Growth and Sustaining Capital Table in the Q3 2024 MD&A dated September 30, 2024.

A table accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/6eadfabd-7ebe-4772-a9c0-bb103c6d62a3

The tables below reconcile TCC and AISC for the nine months ended September 30, 2024 and 2023.

A table accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/1e42dd70-f465-4c40-8f33-021e71eb9de9

1. Sustaining capital expenditures are shown in the Growth and Sustaining Capital Table in the Q3 2024 MD&A dated September 30, 2024.

A table accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/e3a5e547-636e-41f1-b295-99c31a0076b6

1. Production costs include a $0.7 million net realizable value reversal for the Pan mine.
2. Sustaining capital expenditures are shown in the Growth and Sustaining Capital Table in the Q3 2024 MD&A dated September 30, 2024.

(2)  CONSOLIDATED FINANCIAL AND OPERATIONAL RESULTS FOR 2024 INCLUDE THE RESULTS FROM MARATHON SINCE ITS ACQUISITION ON JANUARY 25, 2024

(3)  EBITDA and ADJUSTED EBITDA

The following table provides a reconciliation of EBITDA and Adjusted EBITDA to the consolidated statement of operations and comprehensive income for the reporting periods:

A table accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/f0b9e7a2-f6ab-48e7-abde-7a8a896fb66d

(4)  ADJUSTED NET EARNINGS

The following table provides a reconciliation of Adjusted Net Earnings and Adjusted Net Earnings Per Share to the consolidated statement of operations and comprehensive income for the reporting periods:

A table accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/80deddcb-61d2-4a9b-b3b3-1f783bfed7f9

(5)  CASH FROM OPERATING ACTIVITIES BEFORE CHANGES IN WORKING CAPITAL

The following table provides a reconciliation of Cash from Operating Activities before Changes in Working Capital to the consolidated statement of cash flows for the reporting periods:

A table accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/28fecac3-ade3-4e70-beed-31a76462e586

(6)  NET DEBT and ADJUSTED NET DEBT

The following table provides a reconciliation of Net Debt and Adjusted Net Debt to the consolidated statement of financial position for the reporting periods:

A table accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/e1f17bfe-6ac1-4b5f-9f13-2c415f78e8b6

(7)  ADJUSTED NET DEBT TO ADJUSTED EBITDA

The following table provides the reconciliation of Adjusted Net Debt to Adjusted EBITDA using the last twelve months of Adjusted EBITDA for the reporting periods:

A table accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/d8b7ab19-8c17-4d0c-ada3-3aff5ef03df3

Cautionary Note Regarding Forward Looking Information

This news release includes certain “forward-looking information” and “forward-looking statements” (collectively “forward-looking statements”) within the meaning of applicable Canadian securities legislation. All statements in this news release that address events or developments that we expect to occur in the future are forward-looking statements. Forward-looking statements are statements that are not historical facts and are identified by words such as “expect”, “plan”, “anticipate”, “project”, “target”, “potential”, “schedule”, “forecast”, “budget”, “estimate”, “assume”, “intend”, “strategy”, “goal”, “objective”, “possible” or “believe” and similar expressions or their negative connotations, or that events or conditions “will”, “would”, “may”, “could”, “should” or “might” occur. Forward-looking statements in this news release include but are not limited to the Company’s expectations of gold production and production growth; the upside potential of the Valentine Gold Mine; the Valentine Gold Mine achieving first gold production during the second quarter of 2025; the Company’s reinvestment into its existing portfolio of properties for further exploration and growth; statements relating to the Company’s 2024 priority resource expansion opportunities; the Company’s metal price and cut-off grade assumptions. Forward-looking statements necessarily involve assumptions, risks and uncertainties, certain of which are beyond Calibre’s control. For a listing of risk factors applicable to the Company, please refer to Calibre’s annual information form (“AIF”) for the year ended December 31, 2023, its management discussion and analysis for the year ended December 31, 2023 and other disclosure documents of the Company filed on the Company’s SEDAR+ profile at www.sedarplus.ca.

Calibre’s forward-looking statements are based on the applicable assumptions and factors management considers reasonable as of the date hereof, based on the information available to management at such time. Calibre does not assume any obligation to update forward-looking statements if circumstances or management’s beliefs, expectations or opinions should change other than as required by applicable securities laws. There can be no assurance that forward-looking statements will prove to be accurate, and actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements. Accordingly, undue reliance should not be placed on forward-looking statements.