Industrial-Alliance Insurance and Financial Services is reporting improved profit for the fourth quarter ended Dec. 31, 2003.

The insurer said fourth-quarter profit rose 19% on gains made in rising equity markets. Net income for the quarter was $35.6 million, or 90¢ a share, up from a profit of $29.8 million or 79¢ a share, a year earlier.

The company said insurance and annuity premiums rose 23% to $645.6 million, while return on equity stayed flat at 14.1%.

Sales in the Individual Insurance sector rose for the second consecutive quarter, reaching the second highest level in the company’s history. Assets under management and under administration almost reached the $20 billion mark, totalling $19.6 billion, an increase of 17% for the last 12 months.

“2003 was a profitable year in more than one respect,” commented Yvon Charest, president and CEO. “We accelerated our business growth in the wealth management sector, by acquiring three companies in the mutual funds sector, pursued our Canada-wide expansion plan in the group sectors and successfully completed a $150 million issue of innovative tier 1 capital, which provides us with even greater financial solidity and flexibility.”