Quebec City-based Industrial Alliance Insurance and Financial Services Inc. (TSX:IAG) Wednesday reported lower profit for the third quarter ended Sept. 20.
Net income for the quarter was $98.5 million, or 91 cents per share. That compares with $114.4 million, or $1.07 per share, in the year earlier period.
Assets under management and administration (AUMA) rose during the quarter to $106.8 billion. That’s up from $105.2 billion at the end of June.
The company also announced it is raising its quarterly dividend 8% to $0.28 per share, the second increase this year.
“Despite some weakness in equity markets this past quarter, we are pleased to report positive fund flows and a significant pick-up in premiums and deposits. Our seg fund business was a key driver along with Group Savings and Retirement, both of which had markedly higher inflows in the quarter,” said Yvon Charest, president and CEO.
Premiums and deposits gained momentum in the third quarter, increasing 11% over the previous year, attributed to strong segregated fund inflows and higher sales in group savings and retirement. Total fee‑earning assets under management and administration rose 2% in the quarter and 20% in the year, ending the period at $106.9 billion.
In the retail sectors, insurance sales fell 6% to $51.1 million, reflecting a year-over-year decline in excess premiums, offset by favourable results in the US (up 40%) and Excellence (up17%), Industrial Alliance’s adjustable disability business.
Net investment fund inflows were $57.4 million, representing net sales of segregated funds ($68.5 million) offset by slightly negative mutual fund sales (-$11.1 million).
In group insurance, employee plans achieved higher sales of $45.6 million and special market solutions delivered $40.6 million in sales (+9%)
In dealer services, sales totalled $112.5 million (-4%) in creditor insurance and $43.2 million (+3%) in P&C products.
In group savings and retirement, sales were $258.2 million, up 44% over the previous year.