(July 27 – 14:30 ET) – Clarica Life Insurance Co. is reporting improved net income for the quarter ending June 30. It says it earned $81 million or 60¢ a common share. This represents a 25% increase over pro forma net income of $65 million for the second quarter of 1999.
The insurance company says the second quarter results reflect continued strong equity performance and positive credit experience. It says that pricing and experience gains in the Canadian retail insurance business, continued improvements in the group insurance segment and earnings on the newly acquired life retrocession business contributed to the strong results.
“We are proud of our performance in our first year as a public company,” said Bob Astley, Clarica’s president and CEO. “As well as producing positive earnings for the quarter, we closed the life retrocession acquisition negotiated earlier this year and we are very pleased with the integration of the new business. Our growth initiatives are clearly showing results and we continuously review and refresh our strategies to sustain the momentum.”
Total premiums and deposits increased 11% to $1,516 million for the second quarter, compared to $1,367 million for the second quarter in 1999. Clarica says this growth is primarily due to increases in retail market-based fund deposits and the life retrocession acquisition.
Total assets under administration increased to $43 billion as at June 30, from $39 billion a year ago.
-IE Staff