(October 26 – 12:40 ET) – Clarica Life Insurance Co. is reporting record third quarter earnings. The company says the 29% increase over the third quarter of 1999 is being driven by strong results across major business lines and a full quarter of contribution from the life retrocession business it acquired in April. Net income reached $90 million for the quarter, or 67¢ a share.

The improved performance of the group insurance business, coupled with pricing and experience gains in the Canadian retail insurance business and increased income from growth in surplus assets, pushed results for the third quarter to a new high. Clarica expects to exceed target earnings growth and close out the year within the 18% to 22%.

Return on common shareholders’ equity was 12.6% for the first nine months of 2000, an increase from 11.4%for the first nine months of 1999. Clarica says it is on track to meet its 2001 target ROE of 13%.

Total premiums and deposits increased 12% to $1,540 million for the third quarter, compared to $1,381 a year ago. Clarica attributes the growth to increases in retail market-based fund deposits and the life retrocession acquisition.

Total Canadian wealth management premiums and deposits increased 13% to $2,299 million for the nine months ending September 30, while total assets under administration increased to $43 billion.

Net income for the third quarter in the wealth management segment rose to $22 million. Retail market-based fund deposits increased to $244 million. Deposits to group segregated funds increased to $307.

Net income from the Canadian retail insurance segment increased to $20 million. Clarica says this segment continues to benefit from pricing gains on the non-participating Custom Term product and experience gains included in the par transfer.

At the end of the third quarter, Clarica’s sales force had increased by 61 bringing the sales force total to 3,018. The company expects growth to continue in the fourth quarter, although at a slower pace than the third quarter.

“We are very pleased with third quarter performance which continues our strong earnings momentum since becoming a public company fifteen months ago,” said Bob Astley, company president and CEO.

Clarica’s board of directors declared a quarterly dividend of 15¢ on the company’s common shares.