(February 12 – 11:00 ET) – Maritime Life is reporting improved earnings for 2000. The life insurance company said consolidated net income to shareholders reached $85.9 million for 2000, a jump of 137% from the $36.2 million reported in 1999.

“Most of this increase was a result of significant expense and tax synergies achieved in 2000 following the purchase of Aetna Canada,” explained Bill Black, Maritime Life president and CEO. “While the direct cash impact will be spread over many years, the long-term value of these synergies is reflected immediately through a reduction in policy liabilities, in accordance with Canadian accounting principles,” Black added.

According to the company, the pretax year-to-date result of $163.8 million includes $14.9 million of integration expenses that are a direct result of the acquisition of Aetna Canada. The comparative pretax income result included $44.3 million of pretax costs associated with the sale of Aetna Canada. Operating income before these non-recurring costs is 42.8% better than 1999.

Group insurance new sales were $166 million compared to $212.6 million in 1999. Sales of individual life products ended the year at $64.8 million, down 2.4% from $66.4 million in 1999. Living Benefits sales were $7.6 million compared to $8.5 million in 1999.

The company reported that sales of Maritime Life investment products outperformed the industry in 2000. Gross sales of investment products (excluding group pensions) are up 15.4% over 1999 results: $998.3 million in new deposits, compared to $864.8 million during the same period in 1999.

“We made tremendous progress in integrating the operations of Maritime Life with Aetna Canada,” said Black. “It is thanks to the hard work and dedication of all employees that we were able to accomplish such an ambitious agenda.
-IE Staff