
Cove Insight: Industrial Alliance Insurance Announces 2025 SRIA Guaranteed Interest Rate
For Industrial Alliance Genesis IRIS policies invested in the Smoothed Return Index Account (SRIA), the guaranteed SRDA interest rate for 2025 is 3.15%, up from 2.9% in 2024. See history of returns on the IA website.
The credited rates of the accounts 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 Stabilized Return Index Account (SRIA)
The SRIA fund is managed with a longer-term investment focus, designed to achieve superior returns while minimizing the potential for capital loss within the fund. The portfolio of assets in the funds is comprised of high-quality fixed-income investments such as bonds and commercial loans, with the balance invested in selected equities. The annual SRIA credited rate is determined using a specialized smoothing formula developed by Industrial Alliance. The objective of the smoothing formula is to significantly reduce yield volatility.
As of October 31, 2023, the total asset value of the SRIA was $666 million. As of that date, approximately 72% of the assets were invested in private loans, 23% in high-quality bonds, 3% in common shares, and 2% in alternative assets (essentially mortgages). The average duration of the bonds is approximately ten years.

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