Industrial Alliance Insurance and Financial Services Inc. today reported a 24% increase in fourth-quarter profit, thanks to stronger performances across all business lines and a lower corporate tax rate.

The life and health insurer earned $57.9 million, or 70¢ a share in the three months ended Dec. 31. That compares with earnings of $46.7 million, or 58¢a share, a year earlier.

Premiums and deposits surpassed the $1 billion mark for a third quarter this year, reaching $1.2 billion in the fourth quarter of 2006, a 38% increase compared to the fourth quarter of 2005. This increase is primarily attributable to the strong growth of mutual fund deposits (following the acquisition of fund manager Clarington at the end of 2005), strong segregated fund entries and the signing of several contracts in the Group Pensions sector.

“We achieved all our objectives in 2006,” said Yvon Charest, president and CEO. “We integrated Clarington rapidly, we continued our development outside Quebec, we continued the conversion of National Life administration systems, we acquired another mutual fund broker, FundTrade Financial Corporation, and, most of all, we actively managed the individual insurance strain, without affecting sales momentum in the sector, which grew 5% in the fourth quarter and 9% for 2006 compared to the corresponding periods in 2005.”

The company also increased its quarterly dividend 12.5% to 18¢ a share, from 16¢.