Clarica Life Insurance Co. is reporting greatly improved earnings for the first quarter ended March 31. The insurer says earnings rose 23%, led by domestic retail and group insurance sales.

The insurer says first quarter profit was $111 million, or 82¢ a share, compared with $90 million, or 67¢ a share, in the year-before quarter.

First-quarter total premiums and deposits jumped 16.6% to $2.3 billion from $2 billion last year.

Return on equity rose to 14.4% from a year-earlier 13.%.

Bob Astley, President and Chief Executive Officer, said “I am particularly gratified by our performance in the first quarter of 2002. We continue to improve our customer services standards and maintain sales momentum across our business in the face of competing demands related to the proposed transaction with Sun Life Financial Services of Canada Inc.”

Clarica was recently purchased by Sun Life, but the deal still requires regulatory approval.

Total assets under administration grew to $47.6 billion, compared $45.8 billion at the end of the first quarter of 2001.

Total premiums, deposits and ASO equivalents for the first quarter grew by 17% to $2.3 billion over the same period in 2001.

Total agents, managers and specialists reached 3,597, an increase of 100 in the first quarter of 2002.

Wealth Management earnings for the first quarter were $27 million. Year-earlier results were $9 million, which included $17 million of Royal Trust integration costs and $3 million of goodwill amortization. Excluding these two items, earnings for the latest quarter declined by 7% over last year primarily due to reduced mortality gains on payout annuities.

Premiums and deposits increased 12%, reflecting the continued benefit from the Royal Trust acquisition and increased sales of market-based funds. ROE was 14.6% compared with 14.8% a year earlier, excluding Royal Trust integration costs.

Clarica’s board of directors declared a dividend of 22¢ per share