(February 13 – 12:30 ET) – Industrial-Alliance Life Insurance Co. is reporting record earnings for the year 2000. Net income attributable to the shareholders reached $98.1 million, a 31% increase over the 1999 pro forma net income.

This figure takes into account an unusual gain of $6 million related to the non- recurrent effect of decreases in the tax rates announced in 2000. The return on common shareholders’ equity and the net earnings per common share before this unusual gain, were 14.03% (12.08% on a comparable basis in 1999) and $2.43 ($1.84 on a comparable basis in 1999) respectively.

“We are ending our first year as a capital stock company with record earnings and a strong increase in sales,” reported Yvon Charest, president and CEO. “I am very pleased with these results, which show that Industrial Alliance is well served by its commitment to be a “high performing organization,” he added.

The return on common shareholders’ equity for the twelve months ending December 31, before unusual items, was 14.03%, compares to a pro forma rate of 12.08% for the twelve months ending December 31, 1999, which also excludes the unusual items.

Total insurance and annuity premiums, including contributions to segregated funds, amounted to $574.7 million for the fourth quarter of 2000, a 37% increase over the same period last year, and totalled $2,239 million for the entire year, up 11% over 1999. Premiums from savings and retirement products represent 53% of the total premiums, not counting the savings components of universal life insurance policies.

One of the highlights of the year was the strong growth of sales in the individual insurance sector. For the fourth quarter of 2000, sales amounted to $42.4 million, 39% higher than the same period in 1999. Sales for the entire year totalled $134.1 million, up 17% over 1999.

Assets under management totalled $14 billion as at December 31, an increase of 7% in the last twelve months. The distribution of assets between general funds and segregated funds has changed considerably this year, mainly due to the transfer of $1.4 billion between National Life’s general funds and segregated funds on March 31, 2000.
-IE Staff