Clarica Life Insurance today reported a 17% increase in 2001 third quarter net income compared with a year ago.

The company also re-affirmed an earlier forecast that earnings growth for the year 2001 would be in the range of 20 to 23%, consistent with the 22% growth in earnings experienced in 2000.

Net income for the third quarter ended September 30, was $105 million, or 78¢ per common share compared with $90 million, or 67ç per share a year earlier.

Results for the latest third quarter included an after-tax net claims provision of $25 million in the Reinsurance business unit related to the events of September 11, a benefit of $17 million from a tax release following a favourable court decision on an industry capital tax issue and a gain of $8 million from the sale of a block of business which was part of the reinsurance business acquired in April 2000.

For the first nine months of 2001, earnings rose to $300 million, or $2.23 per share, a 25% improvement over $241 million, or $1.79 per share a year earlier.

Bob Astley, president and CEO, said “earnings growth in the third quarter of 2001 resulted from improved performance in most lines of business. The underlying earnings in the Reinsurance business were strong, but the final results were negatively impacted by the tragic events in the U.S. The Retail Wealth business showed only a modest improvement in the face of difficult equity markets.”

Total assets under administration were $45 billion at September 30, down slightly from June 30, 2001 levels and up 5% from $43 billion a year earlier.

Total wealth management premiums and deposits rose 24% to $879 million at September 30, compared with a year ago. The company says this reflected an increase in group market-based deposits as a result of the Royal Trust acquisition and strong U.S. guaranteed sales.