Canada’s fourth-largest insurer, Industrial Alliance Insurance and Financial Services Inc. (TSX: IAG) says its first-quarter earnings fell 3% to $64.4 million as premiums and deposits fell from a year ago.
The Quebec City-based insurer said Thursday its net profit attributable to common shareholders amounted to 67 cents per share.
That compares to $66.1 million, or 76 cents per share in the same quarter a year ago.
Return on equity fell to 11.1% from 12.6% in the year earlier.
Premiums and deposits slipped 6% to $1.86 billion from $1.98 billion.
Still, sales were generally up.
In individual insurance, sales increased by 17% to $53.4 million, with both the Canadian and the U.S. operations contributing to the growth. Group insurance sales grew 51% to $58.5 million.
Individual wealth management sales fell to $363.7 million, reflecting softer demand in the first two months of the year.
“Our results also benefited from stronger equity markets in the first quarter as well as a tax recovery,” said Yvon Charest, president and chief executive officer.
“Policyholder experience for mortality was favourable in both the individual and group sectors, however, the level of claims for long-term disability benefits was higher than expected. We have therefore taken steps to reverse this situation by implementing an action plan that includes revised pricing together with proactive claims management.”
Shares fell nearly 5% or $1.45 to $27.93 Thursday on the Toronto Stock Exchange.