Quebec City-based Industrial Alliance Insurance and Financial Services Inc. (TSX: IAG) Wednesday reported net income attributed to common shareholders of $105.8 million for the third quarter ended September 30, up from $103.3 million a year ago.
Diluted earnings per share for the quarter were $1.07, down from $1.09 during the year earlier period.
Excluding the gain on the sale of the U.S. annuity business in 2012, Industrial Alliance reported net income from continuing activities increased year over year by 61% from $65.9 million a year ago, while the annualized return on shareholders’ equity reached 14.9% compared with 11.2% in the same quarter a year ago.
“This is clearly one of our best quarters ever and very satisfying on a number of levels,” said Yvon Charest, president and CEO.
“We are particularly pleased to see the excellent results from individual insurance,” continued René Chabot, senior vice president and appointed actuary.
“Strain on new business came in lower than expected and mortality experience was favourable, which allowed us to exceed our plan for the quarter. Looking forward, we feel confident based on the year to date that we are in line to meet our expectations for 2013.”
Premiums and deposits amounted to $1.6 billion in the third quarter, which is comparable to the same quarter last year.
Assets under management and administration reached $89.0 billion, mostly reflecting the increase in equity markets during the quarter.
Subsequent to quarter-end, Industrial Alliance completed the acquisition of Jovian Capital Corp., bringing assets under management and administration close to $95 billion.
In the individual sectors, insurance sales amounted to $54.1 million versus $58.5 million in the same quarter in 2012. Overall wealth management sales were comparable to the previous year, however, the mutual fund segment experienced strong growth for a fourth consecutive quarter with gross sales of $438.3 million, up 24%. Net mutual fund sales of $61.1 million more than offset the decrease in net sales of segregated funds during the quarter.
In the group sectors, business growth was lead by Dealer Services, where sales of creditor insurance increased 13% to $117.7 million and sales of P&C products increased 26% to $46.1 million. Special Market Solutions continued to report steady growth with sales of $37.1 million, up 6%. Employee Plans reported sales of $8.8 million, down by 17% for the quarter. Group Savings and Retirement reported sales of $179.7 million.