Maritime Life is reporting improved results for the first quarter ended March 31. Net income for the quarter was $25.8 million, an increase of 381% over the first quarter last year.

According to the insurer, the increase in net income is due to improvements in group claims experience and changes in the assumptions used to determine the provision for future policyholder benefits in both the group and retail lines. Further changes in assumptions used for the provision for future policy benefits will likely be made throughout the year to reflect emerging trends, but with less impact on the bottom line.

“A portion of the changes in the provision for future policy benefits reflects the continuing expense improvements from the purchase and integration of Aetna Canada,” said Bill Black, Maritime Life president and CEO.

“The quarter-to-quarter comparison is even more pronounced because net income in the first quarter of 2000 was low compared to the other quarters of 2000,” added Black.

Inforce premiums for individual insurance were $619.5 million, an increase of 5% compared to the same period last year, and group premiums were $1,469.2 million, an increase of 4%.

During the first three months of the year, the group insurance division achieved total sales of $52.9 million, up 28% from the $41.3 million reported in the first quarter of 2000.

Sales of individual insurance products were $16.6 million for the quarter, compared to $17.5 million for the same period last year, a decrease of 5%.

Investment product assets have remained fairly flat compared to the same quarter last year, primarily because of lower market values and customers choosing to move into shorter-term investments to avoid market turmoil. Gross sales of investment products are at $314.3 million, down from $445.2 million for the first quarter of 2000, a decrease of 29%.

“With Maritime Life’s prominent position in the segregated funds market and our product portfolio, we’re well positioned to attract significant sales when customers again focus on investing for the long term,” Black explained. “It’s a product line that offers the benefits of mutual funds with the added bonus of the best guarantees in the industry – something that should be especially appealing given recent market activity.”