(August 15 – 15:15) – Industrial-Alliance Life Insurance Co.is reporting improved results for the second quarter ended June 30. The insurer says net income for the quarter reached $23.1 million, or 60¢ a share, compared to regular pro forma income of $19.5 million, or 52¢ a share last year.
The company credited the 21% gain to a combination of sales growth, growth of funds under management, favourable individual and group claims and cost controls.
Yvon Charest, president and CEO stated “The profit is up for all lines of business, including Group insurance, which has returned to profitability after a few negative quarters. The rate adjustments made to contract renewals, which are continuing, appear to be successful. The rate of return of the common shareholders remains in the upper end of the 12% to 14% range targeted by the Company, stability we are proud of.” Return on common shareholders’ equity is 13.37%.
Insurance and annuities premiums, including contributions to segregated funds, reached $500 million, compared to $543.5 million a year ago. For the first six months of the year, premiums total $1,122 million, a $53 million increase compared to the same period in 1999. Premiums from wealth management products account for almost 60% of the total. Assets under management reached $13.5 billion , an 8% increase in the last 12 months
At the company’s annual meeting today, subsidiary Northwest Life announced that it will change its name to Industrial Alliance Pacific. The name will used starting September 1.
Also at the meeting the board of directors authorized a share buyback of up to 1.875 million shares, and adopted a dividend policy. The board decided that the dividend rate will be comparable to that of other recently demutualized Canadian companies, about 20% to 30% of the net income The first dividend will be decided during a meeting of the board in November.
-IE Staff