By James Langton

(November 7 – 17:15 ET) – Industrial-Alliance Life Insurance Co. is reporting a 23% increase in net income in the third quarter ending September 30.

The firm reported net income of $23.8 million or 63¢ a common share, pushing year to date net income to $67.1 million. The return on common shareholders’ equity is 13.69% for the past 12 months, up slightly from 12.76% last year. Assets under management reached $13.8 billion at September 30, a 9% increase in the last 12 months.

The company says increase in the net income for the year is the result of the several factors, including the growth of sales, an increase in the rate bases in group insurance, favourable claims experience in all lines of business, and the control of the level of operating costs. The net income for the year also takes into account the effect of the income tax reductions announced in the February federal budget and the Ontario budget.

The four life and health insurance lines of business are profitable, and that profitability is growing since the beginning of the year. Insurance and annuities premiums in the third quarter, including contributions to segregated funds, reached $542.5 million, an increase of 4% compared to last year.

Premiums for all lines of business are up, except for Group Pensions. Individual Insurance sales are up 17% in the quarter, creditor insurance is up 10%, employee plans gained 25%, individual annuities are up 31%. The company attributes the increase in premiums since the beginning of the year to increased sales in several sectors and the good in-force business persistency rate. Wealth management products, represent 56% of total premiums, not including the amounts saved by insureds in universal life insurance policies.

“We had a strong performance once again,” commented Yvon Charest, president and CEO. “The good results for the year are not due to luck, but are the fruit of a strategy built on Industrial Alliance’s strengths, such as our multiple distribution networks, which make us a leader in Canada in individual life insurance, our regional brand names, which have solid foundations in all regions of the country, and the excellent quality of our investments.”

In the wake of the firm’s results the board of directors declared today the payment of a quarterly dividend of 15¢ a share. This is the first dividend payable to the shareholders since Industrial Alliance shares were officially listed on the Toronto Stock Exchange on February 10.