
Cove Insight: Industrial Alliance Insurance Announces 2025 SRDA Guaranteed Interest Rate
For Industrial Alliance Genesis IRIS policies invested in the Smoothed Return Diversified Account (SRDA), the guaranteed SRDA interest rate for 2025 is 4.1%, up from 3.8% in 2024. This rate includes a management expense (MER) reduction of 0.25% that will be extended for the upcoming year, for a net MER of 1.00%. See history of returns on the IA website.
The credited rates of the account is based on the organization’s long-term return expectations as well as the returns of the underlying assets, to which a smoothing formula is applied. This formula spreads out the main fluctuations in returns (both positive and negative) and provides a low-volatility credited rate from year to year.
The main factor accounting for the net increase in the credited rate for 2025 is the good performance of our funds and the favorable economic environment.
Industrial Alliance Smoothed Return Diversified Account (SRDA)
The SRDA investment strategy is centred around a diversified asset allocation, designed to provide attractive long-term return potential. iA Global Asset Management (iAGAM) is the team responsible for the active management of the Fund. Founded in 2004, the team is at the forefront of the asset management industry.
The objective of the fund is to optimize the asset allocation to provide attractive long-term return potential while minimizing risks through an actively managed approach to investment diversification.
To optimize the risk/return relationship, investments in alternative assets will be integrated into the account in addition to fixed-income securities and equities. Alternative assets offer many advantages such as higher returns with an equal or lower risk, low correlation with traditional asset classes, and increased portfolio diversification.
The SRDA declared rate is based on returns earned on the fund assets to which Industrial Alliance applies a smoothing formula. This formula amortizes the major fluctuations in returns (positive and negative) and provides a stable, low-volatility declared rate from year to year.
The fund assets as of December 31, 2022 are $504 million.

If you have questions, thoughts, or want to talk more about this topic with one of our advisors, you can book a meeting with us.