Industrial-Alliance Life Insurance Co. is reporting improved earnings for the second quarter ended June 30.

The life insurer says net income attributable to the shareholders was $26 million, or 69¢ per common share, a 13% increase compared to the second quarter of 2000. The company says the increase is due in part to the sustained growth of individual insurance sales, as well as by the success of the rate adjustment policy on group insurance contract renewals to reflect rising health care costs. The company also realized a $1.2 million gain from the sale of an information technology subsidiary.

Return on common shareholders’ equity reached 14.19% as at June 30, a similar rate to the one obtained at the end of the first quarter and substantially higher than the 13.37% rate obtained as at June 30, 2000.

“The second quarter was characterized by sustained profitability for the regular operations — in spite of the slow recovery by the financial markets — and by continued improvement of the earnings in the Group Insurance sector, a rise in the profits of the Individual Annuities sector compared to the first quarter and even stronger sales growth than in the first quarter,” stated Yvon Charest, president and CEO.

Insurance and annuity premium income reached $507.7 million for the second quarter, 2% more than the same period last year, and have totalled $1.2 billion since the beginning of the year, 4% higher than last year. Premiums have increased by over 10% in three out of four sectors since the beginning of the year: Individual Insurance (+11%), Group Insurance (+15%) and Group Pensions (+18%). Individual Annuities is the only sector to record a premium decrease (of 17%) since the beginning of the year.

One of the highlights of the quarter was once again the growth of sales in the Individual Insurance sector. After increasing by 22% in the first quarter, sales grew 33% in the second, for a combined total increase of 28% for the first half — on total sales of $76 million.

Employee plan sales reached $19.8 million in the second quarter, 64% higher than the same period last year, and have totalled $35.5 million since the beginning of the year, 55% more than last year. This increase comes primarily from the conclusion of a sale to a large group in Quebec.

Individual Annuities premiums reached $115.6 million for the second quarter, 9% lower than last year. Premiums reached $324.3 million for the first six months of the year, 17% less than last year’s result. The drop is largely due to volatile markets.

Group Pensions sales maintained the first quarter’s momentum and reached $137.1 million in the second quarter, an increase of 9% compared to the same period last year. Sales have totalled $355.7 million since the beginning of the year, 42% higher than the same period in 2000. Insured Annuities stole the spotlight for the second straight quarter, having almost quadrupled compared to last year.

assets under management grew by $149 million in the second quarter to reach $14.2 billion as at June 30.