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

Net income attributable to the shareholders was $25.1 million, or 66¢ per common share, a 5% increase compared to the third quarter of 2000.

For the first three quarters of the year, net income totalled $75.3 million, or $1.99 per common share, an increase of 12% over the same period last year.

Return on common shareholders’ equity reached 13.90% for the 12 months ended September 30, an increase over the 13.69% return obtained a year ago.

“The strength of our performance is attributable to the healthy diversification of our operations by sector of activity, by geographic region in Canada and by distribution network,” declared Yvon Charest, president and CEO.

Charest pointed out that the quality of investments was such that no new provisions for claims were required in the last three months. Individual insurance and group insurance sales actually grew by 10% or more in the third quarter.

The improvement in net income in the third quarter is mainly attributable to the Individual Insurance sector, which had a solid quarter, and to the continued good profitability of the Group Insurance sector and strict control of general expenses.

The gains resulting from these different items offset the impact of the stock market downturn on the company’s income. It is estimated that this downturn caused a $6.3 million decrease in net income for the third quarter and a $10.6 million decrease for the year to date.By line of business, Individual Annuities was hardest hit, due mainly to the reduction in segregated fund management fees and the increase in reserves covering the guarantee granted to segregated fund holders.

Industrial Alliance says it does not expect to suffer any direct losses from the tragedy of September 11.