Industrial-Alliance Insurance and Financial Services Inc. today reported a smaller fourth-quarter profit after accounting for the cost of integrating its National Life subsidiary.

The insurer said net income fell to $34.3 million or 86¢ a share from a restated $36.1 million or 91¢ a share a year earlier.

During the fourth quarter, Industrial-Alliance took a $6.1 million charge to integrate National Life, a step it announced in December.

Excluding the charge, it earned $40.4 million or $1.01 a share in the quarter.

Revenue rose to $983.7 million from $889.7 million, largely on a rise in premiums.

Return on common shareholders equity was 13.4% versus 13.7%.

Industrial-Alliance said it was maintaining its target for return on equity of 13% to 15% and an increase in per share profit of 10% to 12% for 2005.

At midday, Industrial-Alliance shares were up $1.10, or 1.97%, at $57.00.