Industrial Alliance Insurance and Financial Services Inc. today reported a return to profit for the third quarter ended September 30.

The insurer said it earned $56.1 million, or 68¢ per share in the three months ending Sept. 30, compared with a loss of $1.4 million, or 2¢ a share, in the year-earlier period.

The 2005 quarter included a $52.1 million after-tax provision to ensure the liquidity of its clients’ investments in two hedge funds managed by fund manager Norshield.

Industrial Alliance said its return on common shareholders equity was 15.4% on an annualized basis.

Premiums and deposits surged 14% to $998.8 million during the quarter, compared with $875.9 million for the same quarter in 2005, helped by the acquisition of fund manager Clarington.

“We are particularly pleased with our achievements this quarter,” stated Yvon Charest, president and CEO. “The return on equity exceeds our 13% to 15% target; net income is up more than 15% in three of our four lines of business, on a comparable basis, including Individual Insurance, thanks to strict management of the new business strain; individual insurance sales are up 5% this quarter, in spite of the price revisions made to our product line earlier this year; net segregated fund sales still place us among the leaders in Canada, as we are ranked second in the country, one rank better than 2005; the Group Insurance employee plans sector is on the way to having one of its best years ever in terms of sales, across the country; the integration risk related to Clarington is now behind us, and Clarington will definitely deliver on the 2¢ per share accretion to the Company’s net income; and the acquisition of FundTrade Financial Corporation, a mutual fund broker, was successfully concluded in the third quarter.”