Industrial-Alliance Life is reporting lower first quarter profit, because of a provision for two bonds it holds from debt-plagued telecommunications provider Teleglobe.

The insurer said net income rose to $8.6 million, or 22¢ a share, including a $27.9 million provision for the two Teleglobe bonds. That is down from $24.2 million, or 64¢ a share, last year.

Revenues grew to $930.1 million from $782.2 million during the same quarter last year.

“In terms of business growth, we have had one of the best quarters in our history,” said Yvon Charest, president and CEO. “Unfortunately, this performance was obscured by the provision we had to take to cover our risk in Teleglobe. By taking a provision to cover our entire investment in Teleglobe, we have simply decided to be more prudent.

Charest added that despite the provision, the firm maintained a 12.1% return on equity when calculated for the last 12 months.