(April 25 – 18:45 ET) – Clarica Life Insurance had record first quarter earnings in the period ending March 31. Net income was $90 million, or 67¢ per common share in the period, up 29% from $70 million, or 52¢ per share a year earlier.

Bob Astley, president and CEO, said “Clarica’s excellent results reflect strong contributions from the reinsurance business and all Canadian business segments. The reinsurance results continue to be positively affected by the acquisition in April 2000 of a block of life retrocession business. As a result of our first quarter performance, we now expect earnings growth in 2001 to be at the higher end of our target range of 10% to 15%.”

Clarica cited three significant items in the first quarter of 2001: $17 million (after tax) of integration expenses associated with the acquisition of the Canadian defined contribution group pension business of Royal Trust, a gain of $5 million from finalization of the life retrocession acquisition and a release of $6 million in tax provisions following the successful completion of a tax audit, which related to the 1997 disposal of a business unit.

Return on shareholder’s equity increased to 13.1% during the quarter, up from 12.9% at yearend 2000 and 11.4% in the year earlier first quarter. Clarica said the increase resulted from improved earnings and capital management activities.

Total assets under administration grew to $46 billion at March 31, compared with $42 billion at Dec. 31, 2000 with most of the gain attributable to the acquisition of the Royal Trust defined contribution group pension plan business.

Total premiums, deposits and ASO equivalents for the first quarter advanced by 4% to $1.9 billion over the same period in 2000, primarily due to growth from acquisitions.

Total wealth management premiums and deposits declined 6% from the 2000 first quarter to $998 million at March 31, 2001

Clarica declared a dividend of 19¢ per common share.