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The following information was released by the office of the Governor of Massachusetts:

Governor Maura Healey’s Division of Insurance announced today that nine health and dental insurance carriers will return $14.5 million to hundreds of thousands of Massachusetts consumers through rebates required under the state’s health and dental insurance laws.

For the first time, Massachusetts is requiring dental insurance companies to issue rebates after failing to meet the state’s Dental Loss Ratio (DLR) standard, making Massachusetts the first state in the nation to require and enforce dental insurance rebates. Six dental insurance companies Blue Cross and Blue Shield of Massachusetts, Inc., Guardian Life Insurance Company, Harvard Pilgrim Health Care Insurance Company, Inc., Reliance Standard Insurance Company, Standard Insurance Company, and Starmount Life Insurance Company will return $8.4 million to consumers enrolled in their dental plans. An additional $6.1 million will be returned by three health insurance companies Harvard Pilgrim Health Care Insurance Company, Inc., Massachusetts General Brigham Health Plan and UnitedHealthcare Insurance Company to consumers covered by individual and small employer health plans.

“People deserve to know that when they’re paying for health and dental insurance, their money is actually going toward care,” said Governor Maura Healey. “Massachusetts has some of the strongest consumer protection laws in the country, and we’re making sure they are enforced. We are putting more than $14 million back into the pockets of families and small businesses while implementing nation-leading dental insurance protections that save people money.”

“Our efforts will help families and small business owners across the Commonwealth at a critical time. These rebates are important parts of our overall strategy to root out wasteful spending and reduce costs,” said Insurance Commissioner Michael Caljouw. “Massachusetts has some of the strongest consumer protections in the country to ensure that the money people pay for health and dental insurance is spent on patient carenot administrative costs or profits. State law requires health insurance companies offering individual and small employer plans to spend at least 88 percent of premium dollars on health care services, higher than the federal standard of 85 percent. Massachusetts law also requires dental insurance companies to spend at least 83 percent of premium dollars on dental care services. When insurers fall short of those standards over a three-year period, they are required to return a portion of premiums to consumers.”

The amount each policyholder receives depends on their insurance carrier and the premiums they paid. Rebates are issued as a check or as a credit toward future premium payments, and carriers will begin issuing refunds later this month.

Today’s announcement builds on Governor Healey’s ongoing efforts to lower health care costs and hold insurance companies accountable. Her administration has imposed the strongest limits in the country on the growth of health insurance deductibles and co-pays, eliminated prior authorization requirements for routine and essential care, and moved to prevent medical debt from appearing on consumer credit reports. Governor Healey also created the Health Care Affordability Working Group, which recently released recommendations to further lower costs for patients, families and businesses.

Last month, the Division of Insurance negotiated down proposed 2027 health insurance rate increases from seven insurers and rejected another excessive increase, actions projected to save Massachusetts residents and businesses more than $72 million in future premium costs.

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When Equitable Holdings and Corebridge Financial announced their blockbuster merger in May, it left a lot of questions about how the two giants, each with their own areas of strength, would form a cohesive unit.

A few more answers came out on Wednesday as both companies, still operating independently while the merger clears regulatory hurdles, held second-quarter earnings calls with Wall Street analysts.

Shareholders of both companies approved the transaction on July 30, with more than 97% voting in favor, Equitable CEO Mark Pearson said. Federal antitrust review has been completed, and all required regulatory filings have been submitted.

Integration planning is well underway, Pearson added, with the organizational structure established through the first three management levels and work progressing on technology integration. The combined company is expected to deliver at least 10% accretion to earnings and cash flow per share by the end of 2028 and generate a return on equity exceeding 15%.

“We remain focused on achieving our 2026 financial targets and are not treating this as a gap year,” Pearson said. “The combined company will be uniquely positioned to win across the retirement, insurance, asset, and wealth management markets. … We will have scale, distribution, and flywheel benefits that few others possess.”

The merger, expected to close by the end of 2026, stunned the industry. Corebridge ($27.4 billion) and Equitable ($23.3 billion) finished third and fourth, respectively, in LIMRA’s final 2025 annuity sales rankings.

The merger will expand Equitable’s presence in institutional retirement markets by adding capabilities such as pension risk transfer and structured settlements while providing additional balance sheet capacity to support future growth, executives said.

Chief Financial Officer Robin Raju also highlighted opportunities to cross-sell products after the merger closes. Equitable Advisors currently sells about $2 billion in fixed annuities annually and will eventually be able to distribute Corebridge’s fixed annuity, term life and indexed universal life products once the transaction is completed.

“The planning behind the scenes, in terms of all the revenue synergies, … that’s a big focus of us now,” Raju said. “And we expect to hit the ground running.”

Until then, the companies will continue to operate independently because of regulatory requirements, he added.

Benefits business sold

Raju also discussed the sale of Equitable’s employee benefits business to The Hartford, saying the unit had grown to serve more than 800,000 customers and generate approximately $500 million in premiums but had not reached sufficient scale to become profitable.

Equitable’s Employee Benefits portfolio includes group life, disability, paid family and medical leave and supplemental health products, as well as dental and vision. The deal was announced on Tuesday.

Raju said the transaction is expected to have a neutral to slightly positive impact on near-term earnings, with proceeds earmarked for investment in the company’s larger businesses.

By acquiring Equitable’s Employee Benefits technology, The Hartford will upgrade digital experiences for employees, employers, and brokers via real-time API integrations, according to a news release. Both firms will jointly support existing customers, and 300 transitioning employees will join The Hartford at closing.

Financial terms of the transaction were not disclosed.

Quarterly Highlights

• The Retirement segment concluded the quarter with $189 billion in assets under management, representing a 15% increase over the year-ago quarter.
• Reported net inflows of $1.7 billion in Retirement, $2 billion in Wealth Management and $0.8 billion in Asset Management.
• In the Retirement segment, operating earnings of $402 million increased nearly 14% over the prior-year quarter, primarily due to higher fee-based revenue and a lower tax rate.
• In the Corporate & Other segment, the operating loss of $135 million in the second quarter decreased from an operating loss of $183 million in the prior year quarter.

By The Numbers

• Total Revenue: $1.7 billion ($2.4 billion in Q2 2025)
• Operating Earnings: $488 million ($352 million in Q2 2025)
• Earnings Per Share: Non-GAAP operating EPS was $1.70 ($1.10 in Q2 2025)
• Share Repurchases: $366 million in Q2 2026
• Dividend Declared: $83 million in Q2 2026
• Stock Price Movement: Shares rose nearly 6% by late Wednesday to $51.09

© Entire contents copyright 2026 by InsuranceNewsNet.com Inc. All rights reserved. No part of this article may be reprinted without the expressed written consent from InsuranceNewsNet.com.

The post ‘Uniquely positioned’: Equitable outlines future post-Corebridge merger appeared first on Insurance News | InsuranceNewsNet.

Most insurance marketing organizations sell the same three things: carrier access, good commissions and a support team that picks up the phone. For a long time, that was enough. Those three things were hard to put together, so having them meant something.

They are not hard anymore. Every serious independent marketing organization, field marketing organization and brokerage general agency has carrier contracts. Most pay close to market. And every one of them will tell you their service is the best. When everyone claims the same edge, no one has an edge.

I run a distribution firm my father started in 1982. I have led it since 2009. For most of that time, our edge was the same as everyone else’s. Relationships. Reliability. Then I started watching how agents actually spend their day.

They rarely lose a case over a few basis points. They lose it because the back office is slow. A case sits because a form is missing. An illustration takes a day to come back. A status check means an email and a wait. Price matters. But the thing that quietly costs an agent the most business is friction.

Here is the shift I think the next decade turns on. The distributors who will matter are not the ones with the biggest override. They are the ones who understand an agent’s real workflow well enough to fix it, and who own the technology to do the fixing.

More than a decade ago, that thinking led us somewhere that still surprises people in this business. We stopped buying our technology and started building it. Not a vendor product with our logo on it. Software shaped around how producers actually work, and owned by us, so we can change it the week it needs changing instead of filing a ticket and waiting six months.

That is also the foundation under everything worth saying about artificial intelligence. Our industry is drowning in AI talk that means nothing, so let me be plain. This goes far beyond a chatbot on a website. You cannot train a machine to help an agent if you do not own the data running through the back office. Own the rails, and you can build the intelligence that runs on them. That is the part you cannot buy or bolt on later. It must be earned first.

AI removes the work, not the agent

And here is what building it teaches you, instead of talking about it. AI does not replace the independent agent. It removes the work that was never the point. Contracting paperwork. Chasing illustrations. Case status. Appointment logistics. The hours that keep an agent at a desk instead of in front of a client. Hand that to the machine, and the best agents do not disappear. They get their time back. They close more.

None of this gets copied with a bigger commission check. Carrier lineups can be matched in a quarter. Commission grids can be matched in an afternoon. A platform built around real agent workflows, sharpened over years, that improves every time the firm ships a fix, cannot be matched by spending. It must be built.

So here is the real dividing line coming. The future does not pit agents against AI. It pits agents with modern tools against agents without them, and distributors who build those tools against distributors who resell someone else’s.

If you are an agent deciding where to place your business, the old question was, who pays the highest override? The better question is harder. Whose technology am I going to live inside every day? And when it breaks, or when I need something new, who can actually fix it, and how fast? A firm that owns its software can answer that this week. A firm that licenses it answers with a support ticket. The commission is a number you compare in a spreadsheet. The platform is where you spend your working life.

Insurance is still about trust

None of this means relationships stop mattering. Insurance is still a business of trust, and the person on the other end of a hard case is still the reason clients stay. But trust plus a slow back office loses to trust plus a fast one.

The next decade will not be won on price alone. It will be won on what is hard to copy. And the hardest thing to copy is a platform you built yourself, around problems you spent decades learning, that gets better every time you improve it. Commissions and carrier access are table stakes. The technology is the table.

© Entire contents copyright 2026 by InsuranceNewsNet.com Inc. All rights reserved. No part of this article may be reprinted without the expressed written consent from InsuranceNewsNet.com.

The post The insurance distributor that builds its own software will win the next decade appeared first on Insurance News | InsuranceNewsNet.

The Counselor:

Fred and Wilma Flintstone are living the high life. Fred has a one million life insurance policy from “The Rock Insurance Company.” One day, because of a clerical error involving a death certificate for a “Frederick Flagstone,” Wilma — the named beneficiary — receives a check for a cool million. Before long, Fred and Wilma buy a new Mercedes, a huge mansion and all the “bubbly” the wine cellar will hold. Barney, Fred’s best friend, warns Fred that if the insurance company discovers its mistake, it will want its money back. Is Barney right?

Louisiana law recognizes a simple principle; if someone pays you money by mistake that you were never legally entitled to receive, the person who made the payment can generally recover it. Lawyers call this the payment of a thing not due. In this situation, life insurance proceeds paid because the insurance company mistaking believed the insured had died constitute the payment of a thing not due. The insurance company can require a return of the money from the person who unduly received it. If Wilma promptly notifies the insurance company and returns the money, she is acting in good faith. But if Fred and Wilma know the payment was a mistake and spend the money anyway, Louisiana law may require them to repay not only the one million dollars but also legal interest and any profits or benefits they received from the money.

The closing argument

Fred and Wilma may have yelled out “Yabba Dabba Doo” when the check arrived, but will be saying “Uh-oh” when The Rock Insurance Company comes calling. Sometimes, the most expensive money you’ll ever spend is money that never belonged to you. When a payment arrives that you know isn’t your, the smartest investment is returning it before it costs you even more.

David Doughty is an attorney with the law firm of Cotton, Bolton, Hoychick & Doughty.

The post Don't keep checks with clerical errors appeared first on Insurance News | InsuranceNewsNet.

Wealth Management and diversified business model drive earnings growth and return on equity

This news release presents financial information in accordance with IFRS^® Accounting Standards (referred to as “IFRS” in this document) and certain non-IFRS and additional financial measures used by the Company when evaluating its results and measuring its performance. For relevant information about non-IFRS financial measures and other specified financial measures used in this document, see the “Non-IFRS and Additional Financial Measures” section in this document and in the Management’s Discussion and Analysis for the period ended June 30, 2026 (the “Q2/2026 Management’s Discussion and Analysis”), which is hereby incorporated by reference and is available for review at sedarplus.ca or on iA Financial Group’s website at ia.ca. The results presented below are for iA Financial Corporation Inc. (“iA Financial Group” or the “Company”).

SECOND QUARTER HIGHLIGHTS

• Core EPS^†† of $3.68 (+5% YoY) and trailing-12-month core ROE^†† of 17.5%, in line with the 2026 core ROE target¹ of 17%+
• EPS of $4.28 (+25% YoY) and trailing-12-month ROE² of 15.1%
• Wealth Management core earnings^† up 37% YoY and net income up 28% YoY, driven by $4.3 billion in gross sales³ and favourable markets

  

• 37% growth in total assets under management³ and assets under administration³ over the last 12 months, which exceeded $374 billion
• 25% YoY growth in net premiums,³ premium equivalents and deposits³ to more than $6.3 billion, from strong sales and business retention
• Solid organic capital generation³ of $180 million in Q2, on track to reach the 2026 target of $700+ million¹
• Robust capital position emphasized by a 137% solvency ratio⁴ and capital available for deployment³ of $1.1 billion as at June 30, 2026

QUEBEC CITY–(BUSINESS WIRE)–
For the second quarter ended June 30, 2026, iA Financial Group (TSX: IAG) recorded core earnings^† of $330 million and core diluted earnings per common share (EPS)^†† of $3.68, which is 5% higher than the same period in 2025, when insurance experience was very favourable. Core return on common shareholders’ equity (ROE)^†† for the trailing 12 months was 17.5%, in line with the 2026 target of 17%+.¹ Second quarter net income attributed to common shareholders was $384 million, diluted EPS was $4.28 and ROE for the trailing 12 months was 15.1%. The solvency ratio was 137% as at June 30, 2026, highlighting a robust capital position.

“Our diversified business model continued to demonstrate its strength in the second quarter, as broad-based performance across our businesses, led by Wealth Management, generated solid earnings and robust capital generation,” commented Denis Ricard, President and CEO of iA Financial Group. “The 25% increase in premiums and deposits and the 37% growth in assets⁵ over the past year reflect the strength of our distribution capabilities, our ability to attract and support high-quality advisors, and the continued execution of our growth strategy.”

‘’Wealth Management generated significant earnings growth in the second quarter, reflecting strong organic momentum, favourable markets and the contribution from RF Capital. This strong momentum continues to drive robust growth across our business units, supported by our leading distribution platform and sustained demand for segregated fund solutions,” added Éric Jobin, Executive Vice-President, CFO and Chief Actuary. “Strong earnings, combined with a solid capital position and $1.1 billion in capital available for deployment, gives us continued flexibility to allocate capital in a disciplined manner and create long-term value for shareholders.”

Earnings Highlights

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

FINANCIAL TARGETS

The table below presents the progress towards achieving the Company’s annual and medium-term financial targets.

ANALYSIS OF EARNINGS BY BUSINESS SEGMENT

The following tables set out the core earnings^† and net income attributed to common shareholders by business segment. An analysis of performance by business segment for the second quarter and a reconciliation between the net income attributed to common shareholders and core earnings^† for each business segment are provided in the following pages.

Core Earnings (Losses)^†

Net Income (Loss) Attributed to Common Shareholders

Insurance, Canada

• The net income attributed to common shareholders for the Insurance, Canada segment was $118 million, compared to $130 million for the same period in 2025. Net income attributed to common shareholders is composed of core earnings^† as well as core earnings adjustments.
• Core earnings adjustments to net income totalled $10 million. As explained in the “Reconciliation of Net Income Attributed to Common Shareholders and Core Earnings^†” section of this document, these adjustments include a charge resulting from a management action related to the pension plan ($2 million). They also include the amortization of acquisition-related finite life intangible assets ($5 million), the non-core pension expense ($2 million), and integration and restructuring costs ($1 million).
• Core earnings^† for this business segment were $128 million for the second quarter compared to $133 million for the same period in 2025. The $5 million decrease in core earnings^† mainly reflects the net impact of the following:
  • Core insurance service result,⁹ totalling $171 million compared to $177 million a year earlier, mainly explained by:
    • Core insurance experience gains⁹ of $19 million, driven by favourable mortality and morbidity experience, compared to elevated core insurance experience gains of $31 million for the same period in 2025. Note that at iA Auto and Home, the impact of higher claims associated with the heavy rainfall event that occurred in June 2026 was mostly offset by lower claims overall during the period.
    • The favourable impact of the higher combined risk adjustment (RA) release⁹ and CSM recognized for services provided⁹ from Individual Insurance and Employee Plans.
    • The impact of new insurance business,⁹ which is dependent on confirmed sales in Employee Plans, totalling $15 million this quarter compared to $14 million for the same period in 2025.
  • Core non-insurance activities,⁹ totalling $17 million for the quarter compared to $19 million a year earlier, mainly due to slightly lower earnings from P&C products in Dealer Services.
  • Core income taxes⁹ of $45 million for the quarter compared to $48 million a year earlier.

Wealth Management

• The net income attributed to common shareholders for the Wealth Management segment was $134 million, compared to $105 million for the same period in 2025. Net income attributed to common shareholders is composed of core earnings^† as well as core earnings adjustments.
• Core earnings adjustments to net income totalled $21 million. As explained in the “Reconciliation of Net Income Attributed to Common Shareholders and Core Earnings^†” section of this document, these adjustments include a charge resulting from a management action related to the pension plan ($1 million). They also include acquisition-related items ($19 million) and the non-core pension expense ($1 million).
• Core earnings^† for this business segment were $155 million for the second quarter compared with $113 million a year ago. The 37% increase in core earnings^† over the same period in 2025 is mainly the result of the higher combined RA release and CSM recognized for services provided due to the impact of favourable financial markets over the 12-month period and strong net segregated fund sales. Additionally, core non-insurance activities were higher, reflecting increased net revenue on assets and a strong contribution from RF Capital Group of $13 million. Growth of core non-insurance activities was tempered by higher expenses to support business growth.

US Operations

• The net income attributed to common shareholders for the US Operations segment was $12 million, compared to $55 million for the same period in 2025. Net income attributed to common shareholders is composed of core earnings^† as well as core earnings adjustments. For more information on the factors contributing to the variations between the periods, refer to the “US Operations” sub-section of the “Analysis According to the Financial Statements” section of the Q2/2026 MD&A.
• Core earnings adjustments to net income totalled $12 million from acquisition-related items ($10 million) and small specified items ($2 million), including a reinsurance adjustment related to 2025 and a reallocation for reporting consistency, which sum to zero on a consolidated basis.
• Core earnings^† for this business segment were $24 million, which compares to $36 million for the same period in 2025. Expected insurance earnings⁹ were higher due to the increase in the combined RA release and CSM recognized for services provided, mainly driven by good business growth in Individual Insurance in the last 12 months, and higher expected earnings on PAA insurance business⁹ from Dealer Services. A core insurance experience loss of $8 million was recorded, mainly due to unfavourable mortality experience at Fidelity Life (the insurance entity of Vericity) on account of a small number of large claims. Core non-insurance activities were lower than a year ago, reflecting a sales mix in US Dealer Services weighted toward insurance products. Dealer Services core earnings^† growth was tempered by less favourable U.S. auto market conditions and dealer group attrition within administration-fee-generating dealer channels.
• The results from Fidelity Life and eFinancial combined (both entities of Vericity) were neutral to core earnings^† in the second quarter of 2026, without considering the experience losses that are expected to be non-recurring, and are still expected to be accretive to core earnings^† in the second half of 2026.

Investment

• The net income attributed to common shareholders was $183 million compared to $103 million for the same period in 2025. Net income attributed to common shareholders is composed of core earnings^† as well as core earnings adjustments.
• Core earnings adjustments of $104 million reflected a positive impact on net income from market-related impacts that differ from management’s expectations. These adjustments are explained by the favourable impact from non-fixed income assets ($112 million), mainly driven by the good performance of public equity, and the favourable impact of the CIF¹⁰ ($6 million). These positive items were partially offset by the unfavourable impact of interest rate and credit spread variations ($14 million).
• Core earnings^† for this business segment were $79 million compared to $102 million for the same period in 2025. The decrease is explained by higher financing charges on debentures, higher distributions on other equity instruments and dividends on preferred shares, and higher core income taxes. Before accounting for these items, core earnings^† were driven by a core net investment result¹¹ of $129 million. This result is higher than the $127 million recorded a year earlier and the $126 million recorded the previous quarter. The core net investment result is composed of expected investment earnings¹¹ and credit experience.¹¹
  • Expected investment earnings quarter-over-quarter analysis – $119 million in the second quarter, which is similar to the result from the first quarter of 2026. The positive contributions from iA Auto Finance and from the capital issuance in May were offset by the impact of a reduction in assets, mainly from capital deployment activities (share repurchases under the NCIB).
  • Expected investment earnings year-over-year analysis – $119 million in the second quarter compared to $123 million a year earlier. This result mainly reflects the impact of a reduction in assets following the acquisition of RF Capital Group in the fourth quarter of 2025 and the impact of share repurchases (NCIB), partially offset by the favourable contribution from iA Auto Finance.
  • Credit experience – $10 million gain in the second quarter due to more upgrades than downgrades in the fixed income portfolio ($6 million) and favourable experience in the car loans portfolio of iA Auto Finance ($4 million).

Corporate

• Net loss attributed to common shareholders for the Corporate segment was $63 million compared to $72 million for the same period in 2025. This item is composed of core losses^† as well as core losses adjustments.
• Core losses adjustments to net loss for this business segment totalled $7 million. As explained in the “Reconciliation of Net Income Attributed to Common Shareholders and Core Earnings^†” section of this document, these adjustments include a charge resulting from a management action related to the pension plan ($1 million). They also include charges related to acquisition, integration and restructuring of a business, mainly from the RF Capital Group, Fidelity Life and eFinancial (both entities of Vericity) and Global Warranty acquisitions (collectively, $5 million) and the non-core pension expense ($1 million).
• This segment recorded core losses^† from after-tax expenses of $56 million compared to $57 million in the second quarter of 2025. This result reflects disciplined expense management amid inflationary pressures, supported by a strong, ongoing focus on operational efficiency and investments to enhance IT infrastructure performance. In the second quarter of 2026, before taxes, corporate core other expenses were $74 million compared to $79 million in the second quarter of 2025. Corporate core other expenses for the second quarter of 2026 are composed of core other expenses of $65 million—which were favourably impacted by the timing of certain corporate initiatives and which were at the lower end of the Company’s target range of $70 million, plus or minus $5 million¹²—as well as a higher-than-expected provision for variable compensation of $9 million before taxes.

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

Core earnings^† of $330 million in the second quarter are derived from net income attributed to common shareholders of $384 million, reduced by total adjustments of $54 million (post tax) for:

• Market-related impacts that differ from management’s expectations, which resulted in a $104 million increase in net income. This adjustment is explained by the favourable impact from non-fixed income assets of $112 million, mainly driven by the good performance of public equity, and the favourable impact of the CIF ($6 million). These positive items were partially offset by the unfavourable impact of interest rate and credit spread variations ($14 million).
• The impact of assumption changes and management actions leading to a $4 million reduction in net income, resulting from a management action related to the pension plan, as disclosed in the second quarter results of 2025.¹³
• A net charge of $15 million related to acquisition, integration and restructuring of a business, mainly from RF Capital Group, Fidelity Life and eFinancial (both entities of Vericity), and Global Warranty.
• Expenses associated with the amortization of acquisition-related finite life intangible assets of $25 million.
• The impact of the non-core pension expense of $4 million.
• Specified items resulting in a $2 million decrease in net income (from the US Operations segment as detailed above).

Net Income Attributed to Common Shareholders and Core Earnings^† Reconciliation – Consolidated

Contractual Service Margin (CSM)¹⁵

During the second quarter, the CSM increased organically by $120 million. This increase is due to the positive impact of new insurance business of $217 million, organic financial growth of $111 million and net insurance experience gains of $26 million, partly offset by the CSM recognized for services provided in earnings of $234 million, up 17% from a year earlier. Non-organic items led to an increase in the CSM of $403 million during the second quarter, mostly due to the impact of market variations. As a result, the total CSM increased by $523 million (+7%) during the quarter to stand at $8,232 million as at June 30, 2026, an increase of 15% over the last 12 months.

Business Growth

During the second quarter, sales and business retention contributed to the strong growth in net premiums, premium equivalents and deposits, which reached more than $6.3 billion, a 25% increase compared to the same period last year. Total assets under management and assets under administration exceeded $374 billion as at June 30, 2026, an increase of 37% over the last 12 months. In the Individual Wealth Management segment, total segregated and mutual fund gross sales reached nearly $3.2 billion, while combined net inflows were close to $1 billion. The Company continued to rank first for both gross and net individual segregated fund sales.¹⁶ In Canada, Individual Insurance sales remained good at $102 million and the Company maintained its leading position for the number of policies sold.¹⁷ Employee Plans and iA Auto and Home both recorded good sales growth compared to the second quarter of 2025. In the United States, Individual Insurance sales recorded a notable 10% year-over-year increase and Dealer Services sales were broadly in line with the same quarter a year earlier.

INSURANCE, CANADA

• In Individual Insurance, second quarter sales totalled $102 million, a result comparable to last year’s strong performance. The Company maintained its leading position in the Canadian market for number of policies issued.¹⁷ This result reflects the strength of our growing distribution networks, the excellent performance of our digital tools, as well as our comprehensive and distinctive range of products.
• In Group Insurance, second quarter implemented sales of $30 million in Employee Plans were significantly higher than the $8 million recorded in the second quarter of 2025. Net premiums, premium equivalents and deposits for Employee Plans were comparable to those of the same quarter last year. Note that sales in this business unit vary considerably from one quarter to another based on the size of the contracts sold. Special Markets sales reached $83 million compared to $99 million in the same quarter a year earlier, reflecting lower sales of international student medical insurance, due to federal government measures to cap the number of international students entering Canada.
• For Dealer Services, total sales ended the second quarter at $218 million, close to the result for the same period last year. P&C Insurance sales remained good in the second quarter, with total sales reaching $173 million, in line with the results reported a year ago. Creditor Insurance sales declined 10% year over year, primarily reflecting the impact of Quebec’s Law 15 (also known as Bill 30), which introduced new requirements for the sale of creditor insurance through dealerships. Overall, total sales for the first six months of 2026 were slightly higher than in the same period of 2025.
• At iA Auto and Home, direct written premiums reached $216 million in the second quarter, an increase of 5% from a year earlier. This result reflects the increased number of policies and the favourable impact of price adjustments in the last 12 months.

WEALTH MANAGEMENT

• In Individual Wealth Management, sales of segregated and mutual funds remained strong during the second quarter, with segregated fund gross sales totalling nearly $2.1 billion, a 52% year-over-year increase, and mutual fund gross sales of $644 million, a year-over-year increase of 46%. Combined net inflows of segregated and mutual funds totalled $934 million in the second quarter, compared to $505 million in the same quarter last year. Segregated fund net sales were above $1.0 billion, maintaining their strong momentum, while mutual funds recorded net outflows of $73 million. The Company continued to rank first in Canada in gross and net segregated fund sales.¹⁸ This robust performance was notably driven by the strength of our growing distribution networks and our competitive and comprehensive product lineup. Demand for other savings products was strong, resulting in sales of $449 million in the second quarter, 5% higher than in the same period of 2025. As a result of net inflows, market growth in the last 12 months, and the addition of assets under administration from the RF Capital Group acquisition, Individual Wealth Management total assets under administration and assets under management reached $286 billion at the end of the quarter, a 47% increase over the past 12 months.
• Group Savings and Retirement sales for the second quarter totalled $1,108 million compared to $821 million a year earlier. This performance was driven by strong accumulation product sales. Total assets under management at the end of the quarter were 15% higher than a year earlier.

US OPERATIONS

• In Individual Insurance, quarterly sales reached a record US$86 million, 10% higher than the same period a year earlier. This increase was driven by growth in the final expense and middle market segments, supported by disciplined sales practices and strong engagement across our distribution network.
• In Dealer Services, second quarter sales totalled US$292 million, in line with the performance recorded a year earlier. This result reflects the effectiveness and diversity of our distribution channels, supported by the quality of our products and services. Note that auto industry conditions may create quarterly variability in sales results.

ASSETS UNDER MANAGEMENT AND ASSETS UNDER ADMINISTRATION

Total assets under management and assets under administration amounted to more than $374 billion as at June 30, 2026, recording an increase of 37% over the last 12 months. This solid growth was mainly driven by strong net fund inflows, particularly for segregated funds, and by the performance of financial markets and the addition of assets under administration from the RF Capital Group acquisition completed on October 31, 2025. The Company maintained its position as the Canadian leader in segregated fund assets under management.¹⁸

NET PREMIUMS, PREMIUM EQUIVALENTS AND DEPOSITS

Net premiums, premium equivalents and deposits amounted to more than $6.3 billion in the second quarter, which is 25% higher than the same period last year. This performance was mainly driven by the results of all business units in the Wealth Management segment.

FINANCIAL POSITION

The Company’s solvency ratio¹⁹ was 137% as at June 30, 2026, compared to 134% at the end of the previous quarter and 138% a year earlier. This result is well above the regulatory minimum ratio of 90%. The three-percentage-point increase during the quarter was driven by the favourable impact of the subordinated debenture issuance outlined below, and by solid organic capital generation and the positive impact of macroeconomic variations. These favourable items were partially offset by the impacts of share buybacks (NCIB), investments in organic growth, dividend payments, and, to a lesser extent, other non-organic variations. The Company’s financial leverage ratio^†† was 18.6% as at June 30, 2026 compared to 16.4% at the end of the previous quarter. This is mainly explained by the net impact of capital management initiatives during the quarter, namely the issuance of subordinated debentures.

Organic Capital Generation

The Company organically generated $180 million in capital during the second quarter compared to $200 million for the same period in 2025. After six months, $335 million has been generated. This solid result is in line with projections to meet the annual target of at least $700 million in 2026.²⁰

Capital Available for Deployment

As at June 30, 2026, the capital available for deployment was assessed at $1.1 billion compared to $1.2 billion at the end of the previous quarter.

Book Value

The book value per common share²¹ was $80.55 as at June 30, 2026, compared to $78.90 as at March 31, 2026 and $76.02 as at June 30, 2025. During the last 12 months, it increased by 6%, reflecting higher retained earnings, partly offset by the impact of the share buybacks (NCIB) and dividend payments to common shareholders.

Capital Issuance

On May 26, 2026, the Company completed an offering of $500 million aggregate principal amount of 4.158% fixed/floating unsecured subordinated debentures due on May 26, 2036.

Normal Course Issuer Bid (NCIB)

During the second quarter, the Company repurchased and cancelled a total of 1,847,300 outstanding common shares for a total value of $316 million. It also repurchased 163,100 additional shares that were cancelled on July 3, 2026 for a total value of $31 million. Therefore, the Company can repurchase up to 3,307,754 outstanding common shares between June 30, 2026 and the end of the amended program on November 13, 2026. In May 2026, the Company obtained the necessary approvals to increase by 3% the maximum number of shares that can be repurchased and cancelled under its share buyback program, thereby raising this maximum from 5% to 8% of the Company’s public float. Refer to the “Financial Position” section of the Q2/2026 MD&A for more information.

Dividend

The Company paid a quarterly dividend of $1.1000 per share to common shareholders in the second quarter of 2026. The Board of Directors approved a quarterly dividend of $1.1000 per share payable during the third quarter of 2026, the same as that announced the previous quarter. This dividend is payable on September 15, 2026 to the common shareholders of record as at August 14, 2026. The core dividend payout ratio^†† was 29.9% in the second quarter, in the middle of the target range of 25% to 35%.²²

Dividend Reinvestment and Share Purchase Plan

Registered common shareholders wishing to enrol in iA Financial Group’s Dividend Reinvestment and Share Purchase Plan (DRIP) so as to be eligible to reinvest the next dividend payable on September 15, 2026 must ensure that the duly completed form is delivered to Computershare no later than 4:00 p.m. on August 7, 2026. Enrolment information is provided on iA Financial Group’s website at ia.ca, under About iA, in the Investor Relations/Dividends section. Common shares issued under iA Financial Group’s DRIP will be purchased on the secondary market and no discount will be applicable.

Annual Shareholder Meetings

The Annual Shareholder Meeting of iA Financial Corporation Inc. and the Annual Meeting of the Sole Common Shareholder and of the Participating Policyholders of Industrial Alliance Insurance and Financial Services Inc. were held on May 8, 2026. All nominated directors were elected at these meetings. Mr. Kenneth F. Kroner was also elected as a new director of iA Financial Corporation.

Executive Committee

iA Financial Group announced changes to its executive committee, effective June 1, 2026, to support its growth and long-term strategy. Benoit Hudon was appointed Executive Vice-President, Corporate Strategy and Development, and a member of the executive committee; Denis Berthiaume was appointed Executive Vice-President and Chief Growth Officer, Canadian Operations; and Pierre Miron began a planned transition toward retirement. Please refer to the May 5, 2026 news release for more information.

Appointment of Chief Economist

Sébastien Mc Mahon was appointed Chief Economist of iA Financial Group, reflecting the expanded scope and visibility of his role within the organization. In this position, he will focus on providing forward-looking economic research and insights to support the Company’s investment teams, business lines and clients. Please refer to the May 19, 2026 news release for more information.

Unsolicited Mini-Tender Offer

On April 8, 2026 and on May 13, 2026, iA Financial Group issued warnings regarding unsolicited mini-tender offers from Ocehan LLC to purchase up to 50,000 common shares at prices significantly below the market price. The Company is not affiliated with Ocehan and does not endorse these offers. Such mini-tender offers often circumvent standard regulatory disclosures and may mislead investors.

Life Insurance Digital Transformation

On April 8, 2026, iA Financial Group announced a key milestone in the modernization of its individual life insurance business with the integration of term and permanent life insurance into its enhanced digital experience. Approximately 50% of new life insurance sales are now completed through a fully digital, end-to-end process, improving operational efficiency and supporting a more streamlined experience for advisors and clients. Please refer to the April 8, 2026 news release for more information.

Strategic Partnership with PINQ²

iA Financial Group announced a strategic partnership with PINQ² to explore quantum computing through its Advanced Hybrid Platform. This initiative builds on the Company’s investments in artificial intelligence and aims to enhance operations, risk analysis and client solutions. Please refer to the April 29, 2026 news release for more information.

Residential Project Launch

iA Financial Group and Immostar announced the construction of the Alo Ste-Foy project in Quebec City, an 18-storey, 309-unit multi-residential complex representing an investment of $118 million. The project is seeking LEED certification, reflecting a focus on sustainable urban densification. Construction began in April 2026, with the first units expected to be available in June 2028. Please refer to the May 7, 2026 news release for more information.

NON-IFRS AND ADDITIONAL FINANCIAL MEASURES

iA Financial Corporation reports its financial results and statements in accordance with IFRS^® Accounting Standards. 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 ratios include core earnings per common share (core EPS); core return on common shareholders’ equity (core ROE); core effective tax rate; core dividend payout ratio; 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, 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; organic capital generation (net of dividends); sales; net premiums; and premium equivalents and deposits.

For relevant information about non-IFRS measures, see the “Non-IFRS and Additional Financial Measures” section in the Management’s Discussion and Analysis (MD&A) for the period ending June 30, 2026, 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. For a reconciliation on a consolidated basis, see the “Reconciliation of Net Income Attributed to Common Shareholders and Core Earnings” section above.

Reconciliation of Select Non-IFRS Financial Measures

Net Income and Core Earnings^† Reconciliation – Insurance, Canada

Net Income and Core Earnings^† Reconciliation – Wealth Management

Net Income and Core Earnings^† Reconciliation – US Operations

Net Income and Core Earnings^† Reconciliation – Investment

Net Income and Core Earnings^† Reconciliation – Corporate

Reconciliation of Core Earnings^† to Net Income Attributed to Common Shareholders According to the DOE – Consolidated

Forward-Looking Statements

This document may contain statements that are predictive or otherwise forward-looking 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 “financial targets”, “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 future operating results, strategies, and financial and operational outlooks. 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; iA Financial Group liquidity risk, including the availability of funding to meet financial liabilities at expected maturity dates; mismanagement or dependence 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, including artificial intelligence; 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 (or variations or withdrawals in respect of anticipated changes); risks associated with the regional or global political and social environment; geopolitical and trade uncertainty; 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 meet stakeholder expectations on environmental, social and governance matters; the occurrence of natural or man-made disasters, international conflicts, pandemic diseases (such as the COVID-19 pandemic) and acts of terrorism; and downgrades in the financial strength or credit ratings of iA Financial Group 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 2025 that could influence the Company’s performance or results.

Ongoing geopolitical tensions, including war in Ukraine and the Middle East, and escalating trade tensions between the U.S. and Canada, including tariffs, continue to disrupt supply chains and raise costs, contributing to economic uncertainty. Global equity markets could face increased volatility due to ongoing tariff risks, evolving interest rate expectations and general uncertainty. These factors may reduce consumer and investor confidence, increase financial instability and constrain growth prospects.

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 2025, the “Management of Financial Risks Associated with Financial Instruments and Insurance Contracts” note to the audited consolidated financial statements for the year ended December 31, 2025, 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 and outlooks 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. Forward-looking statements are presented in this document for the purpose of assisting investors and others in understanding certain key elements of the Company’s expected financial results, as well as the Company’s objectives, strategic priorities and business outlook, and in obtaining a better understanding of the Company’s anticipated operating environment. Readers are cautioned that such information may not be appropriate for other purposes.

GENERAL INFORMATION

Documents Related to the Financial Results

For a detailed discussion of iA Financial Group’s second quarter results, investors are invited to consult the Management’s Discussion and Analysis for the quarter ended June 30, 2026, the related financial statements and accompanying notes and the Supplemental 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. The Management’s Discussion and Analysis and the Company’s financial statements are also available on SEDAR+ at sedarplus.ca.

CONFERENCE CALL

Management will hold a conference call to present iA Financial Group’s second quarter results on Wednesday, August 5, 2026 at 11:00 a.m. (ET). To listen to the conference call, choose one of the options below:

• Live Webcast: Click here (https://www.gowebcasting.com/14735) or visit the iA Financial Group website at ia.ca and go to About iA/Investor Relations/Events and Presentations.
• By phone: Click here (https://dpregister.com/sreg/10204617/1006105dd12) to register and receive a dial-in number to connect instantly to the conference call. You can also dial 1-833-752-4884 (toll-free in North America) or 1-647-849-3374 (International) fifteen minutes before the conference call is scheduled to take place and an operator will connect you.

The conference call will be recorded and the replay will be available on the iA Financial Group website at ia.ca, under About iA/ Investor Relations/Financial Reports.

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).

ia.ca

iA Financial Group is a business name and trademark of iA Financial Corporation Inc.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260804745478/en/

Investor Relations
Caroline Drouin

Office: 418-684-5000, ext. 103281

Email: caroline.drouin@ia.ca

Public Affairs
Chantal Corbeil

Office: 514-247-0465

Email: chantal.corbeil@ia.ca

Source: iA Financial Group

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Small businesses play a vital role in local economies, and they’re dependent on the owners and employees who power them. That’s one of the reasons they need strong broker partners who can help identify the right coverage options and provide support during benefits selection.

Beyond receiving a paycheck for their work, having access to benefits such as life insurance provides additional financial protection and stability for the workforce. However, many workers remain uninsured or underinsured. And business owners may have too little time or resources to help their employees meet their benefits needs. Worse, they can be overwhelmed and confused about what options are even available.

For brokers, this creates a clear opportunity to demonstrate value in life insurance benefits by helping small-business clients navigate competing priorities and make more informed benefits decisions to best support their businesses and employees.

The coverage gap is a business risk

Recent research continues to show that a significant number of Americans either lack life insurance or feel they need more coverage. For small businesses, where each employee plays a critical role, that gap has real implications. It’s imperative to reframe life insurance as more than a convenience during a major “what if” scenario. Even modest offerings can:

• Provide financial protection for employees and their families
• Support overall well-being and peace of mind
• Strengthen retention in a competitive labor environment
• Reinforce a culture of care within smaller teams

Most employers want to invest in their people, but intention alone doesn’t solve for execution. That’s where the conversation shifts from why benefits matter to how to make them work.

Why simplicity is often the deciding factor

For many small businesses, implementing benefits in a way that fits with already limited time and resources can be the biggest hurdle.

The most effective benefits strategies for small organizations are the ones that are realistic to implement and sustain over time.

That comes down to a few key considerations:

• Is there ease of enrollment so that employees can participate without confusion or added friction?
• Is there administrative efficiency, particularly around billing and ongoing management?
• Can they be provided with a streamlined plan design, ensuring benefits are easy to understand and communicate?

For small businesses, having simple benefits and straightforward enrollment makes adoption achievable. When benefits align with how an organization operates, they’re far more likely to be implemented and valued over time.

When simplicity becomes the deciding factor, it changes how brokers need to guide those decisions.

Reframing the broker’s role

Constraints around time and administrative capacity can shape benefits decisions and redefine the broker’s role in the process. Any broker can present options, but the best brokers guide decisions with clear enrollment activities, understandable next steps for owners, and offerings from a carrier that will provide consistent support beyond the initial enrollment.

Brokers who can translate benefits into practical, easy-to-implement strategies are better positioned to build long-term relationships and deliver ongoing value. That includes helping small-business clients:

• Identify coverage options that balance meaningful protection with operational simplicity
• Provide access to products that can be customized, with the ability to add riders, and offering flexible enrollment and billing options
• Reduce administrative strain by prioritizing streamlined processes
• Support employee engagement through education and reenrollment opportunities
• Adapt strategies over time as business needs evolve

This advisory approach better supports clients and creates more durable relationships, positioning brokers as long-term partners in their clients’ growth. It also can change how benefits strategies are built in practice.

Building a practical benefits strategy

Some of the most effective benefits strategies are incremental. Introducing accessible insurance coverage options can provide meaningful support without requiring a complete overhaul of existing offerings.

Options like life, accident, and critical illness insurance can be part of a comprehensive financial protection strategy, helping employees understand the role these coverages play in unexpected events while ensuring stability for their families. This can be done by starting simple. Help clients prioritize the types of financial protection that address their employees’ potential most immediate risks, while building toward a more comprehensive approach over time.

Turning a challenge into an opportunity

Supporting a small business starts with supporting its people. Small-business owners are seeking ways to care for employees while continuing to focus on growth and day-to-day operations. Brokers must help clients access solutions that are meaningful and manageable without adding unnecessary complexity.

Leading with more effective conversations builds stronger client relationships. It also positions life insurance benefits as a practical tool for strengthening small businesses from within. Now is the time to revisit conversations and identify where simpler, more accessible benefits strategies can make a meaningful impact.

© Entire contents copyright 2026 by InsuranceNewsNet.com Inc. All rights reserved. No part of this article may be reprinted without the expressed written consent from InsuranceNewsNet.com.

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A California federal judge again threw out a lawsuit accusing Penn Mutual Life Insurance Co. and its codefendants of running a whole life insurance tax-avoidance scam.

In her ruling last week, however, Judge Sherilyn Peace Garnett gave the 29 plaintiffs one final opportunity to revive several fraud-related claims through an amended complaint. Plaintiffs have 21 days to file a third amended complaint.

In an order issued in the U.S. District Court for the Central District of California, the judge granted motions to dismiss filed by Penn Mutual and Wintrust Life Finance, finding that the plaintiffs failed to adequately plead several causes of action, including Racketeer Influenced and Corrupt Organizations Act (RICO) claims against Wintrust and claims alleging breach of the implied covenant of good faith and fair dealing against both companies.

The court concluded that further amendment of those claims would be futile. The judge previously tossed out a second amended complaint in December.

The ruling, however, allows plaintiffs to file a third amended complaint seeking to bolster RICO claims against Penn Mutual and Crosslin PLLC, an accounting firm, as well as fraud and negligent misrepresentation claims against Penn Mutual, Wintrust and Crosslin.

Agent pleaded guilty

The defendants include former Penn Mutual agent Randall Scott Boll, who was indicted in 2021 on four counts related to violations of federal money laundering laws and banking regulations.

Boll pleaded guilty to one count of conspiracy to cause a financial institution to fail to file currency transaction reports and to structure financial transactions. He was sentenced to one day behind bars in California, court records say, and two years of supervised release.

The lawsuit alleges that Penn Mutual and Boll – along with several other law, lending, accounting and financial planning firms also named as defendants – constituted a “High-Premium Insurance Enterprise.”

“The HPI Enterprise was an organization consisting of individuals and business entities associated for the common or shared purpose of selling, promoting and/or marketing high-premium life insurance policies and related products to plaintiffs through deceptive and misleading sales tactics and materials, and deriving profits from those activities,” the lawsuit reads.

Penn Mutual whole life policies were aggressively marketed as offering “significant tax advantages,” plaintiffs say. “Boll and other members and associates of the enterprise would reap high commissions (as much as 75-125% of the initial annual premium paid by the policyholder) for each HPI policy sold.”

Plaintiffs accuse Penn Mutual of ignoring its own underwriting guidelines “by repeatedly accepting insurance applications for plaintiffs that … falsely inflated the net worth of plaintiffs.” The policies equated to big profits for the insurer because all of plaintiffs’ policies “were designed to (and in fact did) terminate long before the insureds’ life expectancies,” the lawsuit states.

One type of “sham tax avoidance strategy” incorporated premium financing life insurance loans to finance the policies, the lawsuit alleges.

Tax strategies endorsed

The court stated that the second amended complaint alleges that a Penn Mutual representative endorsed tax strategies promoted by defendant Boll during conversations with several plaintiffs, including statements regarding the tax deductibility of life insurance premiums and policy loan interest.

Because plaintiffs allege those representations were false, the judge found amendment of those claims would not necessarily be futile.

The judge also found that plaintiffs could potentially cure deficiencies in their RICO allegations by more specifically alleging that Penn Mutual shared a common fraudulent purpose with Boll and by identifying allegedly fraudulent statements with greater particularity.

If plaintiffs fail to refile an amended complaint, Penn Mutual and Wintrust will be dismissed from the litigation. At the same time, defendants Boll and Crosslin will be required to answer the existing complaint within 14 days thereafter.

© Entire contents copyright 2026 by InsuranceNewsNet.com Inc. All rights reserved. No part of this article may be reprinted without the expressed written consent from InsuranceNewsNet.com.

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Your client is 44 years old, runs half marathons and hasn’t seen the inside of a hospital since her second child was born. She applies for a $750,000 term policy through one of those no-exam accelerated programs, the kind that promises an answer in days instead of weeks. The answer arrives fast, all right: Table 2. No explanation.

Nobody drew blood. Nobody checked her blood pressure. So what happened?

An algorithm happened. If you sell life insurance in 2026, you need to know what that algorithm read, what the new rules say it can and cannot do, and what you can do for your client when it gets something wrong.

What the machine reads

Accelerated underwriting decides whether to approve, refer or decline without labs by pulling third-party data the moment your client signs the authorization. Three sources do most of the heavy lifting.

Prescription histories come first. Data vendors compile years of pharmacy fill records, and the model reads them the way an old-school underwriter once read lab slips. A statin says one thing. A statin plus two blood pressure medications plus something for sleep apnea says another. What the records don’t include is why a drug was prescribed, and that’s where trouble starts. An antidepressant used off-label for migraines can read as a mood disorder. A one-time painkiller script after knee surgery can look like something it isn’t.

Then there’s MIB, the industry’s shared record of prior application activity. If your client applied elsewhere three years ago and disclosed a condition, that coding follows them to your case.

Third, many programs pull credit-based insurance scores, motor vehicle records and other public data. The theory is that financial stability and safe driving correlate with mortality. The argument regulators keep having is about what else that data correlates with.

The model weighs everything and does one of three things: approves at a rate class, refers the file to a human underwriter, or declines or reprices. The referrals are invisible to your client. The declines and the surprise table ratings are not.

The rulebook caught up

For years, the technology ran ahead of regulation. That era is closing. Three developments now shape what carriers can do with these models, and each development hands advisors something useful.

Start with the National Association of Insurance Commissioners. Its model bulletin on insurers’ use of artificial intelligence systems, adopted in December 2023, reminds carriers that existing law on unfair trade practices and unfair discrimination applies fully to algorithmic decisions, and it expects a written governance program covering testing, bias checks and oversight of the vendors supplying the data. More than half the states have adopted the bulletin or something close to it. In January 2026, the NAIC began piloting an AI examination tool that state regulators will use in market conduct exams. In plain terms, carriers now must be able to document and defend what their models do, because examiners have started asking.

Colorado went further. Under Senate Bill 21-169, insurers there cannot use external consumer data, or algorithms and predictive models built on it, in ways that unfairly discriminate based on race, color, national or ethnic origin, religion, sex, sexual orientation, disability, gender identity or gender expression. The Division of Insurance’s governance regulation has bound life insurers since late 2023 and requires an annual compliance attestation. In October 2025, the state extended the same framework to auto insurers and health plans. A companion rule that would force statistical testing of underwriting outcomes by race and ethnicity is still in draft form, but nobody in the industry doubts where Colorado is headed.

New York State got specific about disclosure, which is where advisors gain the most leverage. The Department of Financial Services’ Insurance Circular Letter No. 7, issued in July 2024, tells every insurer licensed in the state that when an adverse underwriting or pricing decision comes out of an AI system or external data, the reasons given to the applicant should include all the information the decision rested on, down to the specific source. A carrier cannot point to the proprietary nature of a vendor’s model to dodge that. Applicants are also owed a way to review the underlying data for accuracy, and they can request the specific data that produced the decision.

When the algorithm says no

When you combine those rules, you create a functional playbook.

It starts before the application. Ask about every prescription from the past five to seven years, including drugs filled once and abandoned, drugs prescribed off-label and drugs tied to a condition that resolved long ago. The database will surface all of it anyway, so the application should explain it first. A short cover letter from you to the underwriter, supplying the context a pharmacy record can’t, remains one of the most valuable pieces of paper in this business.

When a case comes back flagged, repriced or declined, put a question to the carrier in writing: what were the specific reasons, and what were the specific data sources? In New York, that answer is expected of them. Everywhere else, most carriers can produce it, and the federal Fair Credit Reporting Act independently gives your client rights when a third-party consumer report drove the adverse action, including a free copy of the report and a process for disputing errors.

Then check the data itself. Have the client request their MIB file, which is free, along with their prescription history report from the carrier’s data vendor. Miscoded drugs, stale records and other people’s information blended into a file all happen more often than anyone likes to admit. A successful dispute followed by a request for reconsideration can reverse a decline without ever changing carriers.

If the data is accurate but the model’s conclusion feels harsh, change the process instead. Most carriers can shift an accelerated case into full traditional underwriting, where labs, an exam and an attending physician statement give a human underwriter a fuller picture than a pharmacy printout. And because every carrier’s model weighs the same data differently, shopping the case around is not desperation. It’s the job.

The part of underwriting that stays human

None of this slows the technology down, and it isn’t meant to. Instant-decision underwriting is genuinely good for most clients most of the time. What the new rules end is the era of the unexplainable no. Carriers now must know why their models decide what they decide, and increasingly they have to say so.

Someone still must ask, though. Regulations create rights; they don’t exercise them. That part is yours. The advisors who understand what the machine read, and what the law now requires a carrier to reveal, will place cases this year that would have died quietly five years ago.

© Entire contents copyright 2026 by InsuranceNewsNet.com Inc. All rights reserved. No part of this article may be reprinted without the expressed written consent from InsuranceNewsNet.com.

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OLDWICK, N.J.–(BUSINESS WIRE)–
AM Best has revised the outlooks to negative from positive and affirmed the Financial Strength Rating (FSR) of A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a-” (Excellent) of the following subsidiaries of Group 1001 Insurance Holdings, LLC: Delaware Life Insurance Company and Clear Spring Life and Annuity Company (both domiciled in Wilmington, DE). These companies are referred to as the Group 1001 Life & Annuity Group. In addition, AM Best has revised the outlooks to negative from positive and affirmed the FSR of A- (Excellent) and the Long-Term ICR of “a-” (Excellent) of Gainbridge Life Insurance Company (Gainbridge Life) (Wilmington, DE).

Concurrently, AM Best has revised the outlooks to negative from stable and affirmed the FSR of A- (Excellent) and the Long-Term ICRs of “a-” (Excellent) of Clear Spring Casualty Insurance Company, Clear Spring National Insurance Company, Clear Spring Property and Casualty Company and Clear Spring American Insurance Company, which are referred to as the Group 1001 Property and Casualty Group (Zionsville, IN).

The ratings of the Group 1001 Life & Annuity Group reflect its balance sheet strength, which AM Best assesses as adequate, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management (ERM). The revision of the outlook to negative from positive is a result of the recent reclassification of a material portion of the group’s private credit investments from unaffiliated to affiliated assets. As a result of the reclassification, Delaware Life Insurance Company’s affiliated investments changed to 42% from 3% at year-end 2025. The reclassification resulted in a material decrease in the year-end 2025 risk-adjusted capitalization level for the group, as measured by Best’s Capital Adequacy Ratio (BCAR). While the group has noted a remediation plan for restructuring the subject assets, there is execution risk in doing so. AM Best also has concerns over the group’s ERM due to internal control weaknesses in financial reporting related to the affiliated investment reclassification. Also noted is the recent investigation by the U.S. Attorney Office for the Southern District of New York and the U.S. Securities and Exchange Commission focusing on a review of affiliated and related party disclosures.

The ratings of Gainbridge Life reflect the company’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, limited business profile, and appropriate ERM. The company offers various annuity products on a digital direct-to-consumer platform that includes multiyear guaranteed and fixed indexed annuities. Gainbridge Life has maintained favorable risk-adjusted capitalization over recent years with capital contributions from its parent, allowing for premium growth over its limited operating history.

The ratings of the Group 1001 Property and Casualty Group reflect its balance sheet strength, which AM Best assesses as strong, as well as its marginal operating performance, limited business profile and appropriate ERM. The revision of the outlook to negative from stable is a result of unfavorable reserve development in the group’s workers’ compensation business within California, which has led to a deterioration in the group’s risk-adjusted capitalization. This decline is partially offset by capital contributions and a capital maintenance agreement from the parent organization.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2026 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260731535248/en/

Kevin Varvaro

Senior Financial Analyst

+1 908 882 2410

kevin.varvaro@ambest.com

Edward Kohlberg

Director

+1 908 882 1979

edward.kohlberg@ambest.com

Christopher Sharkey

Associate Director, Public Relations

+1 908 882 2310

christopher.sharkey@ambest.com

Al Slavin

Senior Public Relations Specialist

+1 908 882 2318

al.slavin@ambest.com

Source: AM Best

The post AM Best Revises Outlooks to Negative for Subsidiaries of Group 1001 Insurance Holdings, LLC appeared first on Insurance News | InsuranceNewsNet.

A federal appeals court sided with Ameritas Life Insurance Corp. on Thursday in affirming a lower-court ruling that a $4 million life insurance policy purchased on a New Jersey retiree was an illegal stranger-originated life insurance arrangement.

The Court of Appeals for the 8th Circuit affirmed summary judgment in favor of Ameritas, rejecting claims brought by Wells Fargo Bank as securities intermediary for Vida Longevity Fund, which had acquired the policy years after it was issued.

“[Z]ero evidence indicates that the representations Wells Fargo relies on are true,” wrote Judge Bobby E. Shepherd, writing for the three-judge panel.

The decision continues a summer winning streak for life insurers in stranger-originated life insurance, or STOLI, cases. In June, the 3rd Circuit affirmed summary judgment in favor of Lincoln National Life Insurance Co., rejecting investor claims involving two life policies worth a combined $8 million.

Both the Ameritas and Lincoln cases originated in New Jersey. Applying New Jersey law, the courts concluded the policies were classic STOLI arrangements because investors with no insurable interest were the intended beneficiaries from the outset.

New Jersey law and the state’s Supreme Court have consistently held that STOLI arrangements violate public policy and are void from inception.

Wells Fargo could not be reached for comment. Ameritas did not provide a comment by the time this article was published.

2008 life policy

The Ameritas-Wells Fargo dispute concerns a $4 million policy issued in 2008 on the life of Jerry Freid, a retired New Jersey resident who died in 2020. Vida sought to collect the death benefit after purchasing the policy as part of a portfolio of life insurance contracts.

Ameritas, which succeeded the original issuer, refused payment, arguing that the policy was void from its inception because it was created as part of a STOLI scheme.

The appeals court agreed that the evidence overwhelmingly showed the coverage was procured not for legitimate estate planning, but to benefit investors lacking an insurable interest in Freid’s life.

“The summary judgment record does not permit a reasonable trier of fact to conclude that the Policy was anything other than STOLI,” Shepherd wrote.

The policy originated with insurance producer Michael Binday, who operated a brokerage business that federal prosecutors later alleged orchestrated a widespread STOLI scheme. Binday and insurance agent James Kevin Kergil were convicted in 2013 of mail fraud, wire fraud and conspiracy after a jury found they had deceived insurers by arranging policies for seniors that were intended to be sold to investors after contestability periods expired.

According to the opinion, Binday recruited seniors who had little need for large life insurance policies, obtained life expectancy reports for potential investors, and created trusts to own the policies before arranging premium financing through an entity known as HM Ruby.

The financing structure eliminated virtually all financial risk for insureds by allowing the policies to satisfy the loans if they were not repaid. The court said HM Ruby expected the policies to be transferred to investors rather than retained for estate planning purposes.

‘Laughed out loud’

Freid was 72 when the policy was issued and had a net worth of no more than about $500,000, court documents say. He rented his home and could not afford the policy’s $177,000 annual premium. Yet the insurance application represented that his net worth exceeded $4.4 million.

When  Freid’s daughter, who later administered his estate, heard the $4.4 million figure, she “laughed out loud,” court documents say.

Vida ultimately acquired the policy despite internal due diligence describing the portfolio as perhaps “the worst overall block [it] had ever looked at,” and characterizing the HM Ruby-financed policies as “premium finance loan-to-own” business, court documents say.

On appeal, Wells Fargo argued that Florida law should apply because the trust’s trustee may have signed the application there. The court rejected that argument, ruling that the policy’s “conformity with laws” provision was not a choice-of-law clause and that New Jersey had the most significant relationship to the transaction because Freid lived there, the application and policy were prepared on New Jersey forms, and all parties expected New Jersey law to govern.

The decision leaves intact the district court’s dismissal of Wells Fargo’s breach of contract and bad-faith claims.

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