Industrial-Alliance Life is reporting improved profits for the fourth quarter ended Dec. 31. 2001.

The insurer attibutes the increase to a strong performance by its group insurance business.

Fourth-quarter net income rose to $28.6 million, or 76¢ a share, excluding unusual items. That is up from $25 million, or 66¢ a share, last year.

For the year ended Dec. 31, 2001, the company said profits rose nearly 12.8% to $103.9 million from $92.1 million, excluding items.

The return on common shareholders equity was 14% for the year, the same rate as in 2000, excluding the unusual gain.

“We are very happy to end the year with record earnings and a strong increase in sales,” said Yvon Charest, president and CEO. “Our primary objectives are to obtain continued growth of earnings per share, as well as a high and consistent rate of return and regular growth of our market shares. We achieved these objectives once again last year.”

Charest singled out the 66% increase in group insurance sales, a much higher rate than that of the industry. Investment funds also performed well, allowing the company to benefit from net segregated fund entries in the Individual Annuities sector, ranking it fourth in Canada in this respect, with 9.0% of the market.

Insured annuity sales in the Group Pensions sector doubled during the year, confirming Industrial Alliance’s position as an industry leader in Canada in this market segment. Finally, in the strategic Individual Insurance sector, the Company moved from second to first in terms of sales in Canada during the year, making Industrial Alliance the leader in the universal life policy market.