(February 1 – 17:30 ET) – Clarica Life Insurance is reporting record fourth quarter earnings. The insurer says increase was driven by the contribution of the acquired life retrocession business and strong performance by all Canadian business segments. Results for the year 2000 also established a record.

Net income was $92 million, up $15 million, or 19% over the fourth quarter of 1999. Net income for 2000 was a record $333 million, an increase of 22% from 1999. Earnings per common share rose to 69¢ from 57¢ in the year earlier quarter, while year 2000 EPS increased to $2.48 from $2.04 in 1999.

Return on shareholder’s equity for 2000 was 12.9%, up from 11.8% in 1999 and was driven by increased earnings and active capital management.

Total premiums and deposits for the fourth quarter dipped by 3% to $1,684 million over the same period in 1999, and for the year rose 8% to $6,577 million, primarily due to gains in retail market-based fund deposits and the life retrocession acquisition.

Total assets under administration grew to $42,236 million as at Dec. 31, 2000 compared with $40,189 million a year earlier. Continued strong growth in retail market-based fund deposits and the life retrocession acquisition contributed to this increase.

Total life insurance premiums for the year rose 17% to $2,098 million due mainly to the life retrocession acquisition. Total wealth management premiums and deposits increased by 5% to $3,164 million at Dec. 31, 2000 including strong performance in retail wealth management.

“Clarica’s performance in the fourth quarter continued the excellent results obtained in the first nine months,” said Bob Astley, president and CEO.
-IE Staff