The Maritime Life Assurance Co. reported slightly weaker net income for the first quarter ended March 31.

The firm had net income of $27.2 million. This is up 5.6% over the comparative period in 2001. However, after adjusting 2001 results to remove goodwill amortization recorded in that period, net income is 2.5% lower than the same period last year. Under new accounting standards, goodwill is no longer subject to regular amortization.

Also, the firm said that in its second quarter results, it will report a provision for loss of $12.5 million on its $15.0 million bond investment in Teleglobe Inc., following the announcement by BCE Inc. to cease its financial support of this subsidiary.

“We’re pleased with Maritime Life’s strong first quarter results,” said Bill Black, president and CEO. “Among the quarter’s highlights was the launch of our new institutional annuities product that was very successfully received. We attracted $350 million of investments and expect this business to be a strong new area of growth in the future. Our presence in the group insurance marketplace is expanding. In the first three months of this year, total sales within our Group business were $85.8 million, a testimony to our high customer satisfaction across all regions.”

Total sales from the group insurance business increased 61.9% over the first quarter 2001. Sales of term life insurance were 26.3% higher. However, overall individual life insurance sales were flat. New investment product deposits were 7.5% lower than the same quarter last year. GICs rose 5.8%.

Premium revenue for the first quarter grew by $388.4 million over the comparative period a year ago. This is attributable to three sources: the successful launch of the new institutional annuities product ($350 million), the impact of the Royal & Sun Alliance Life Insurance Company of Canada acquisition ($24 million) and increased premium on existing business and new sales ($14.4 million).