Industrial-Alliance Insurance and Financial Services Inc. today reported its second-quarter profit rose 10%.

The Quebec City-based insurer earned $44.5 million, or 56¢ a share, up from $40.4 million, or 51¢ a share, in the year-earlier period.

Premiums and deposits jumped 27% to $837.4 million, mostly because of strong fund sales. General fund, segregated fund and mutual fund sales rose 52% compared to the second quarter of last year.

Return on equity on an annualized quarterly basis was 14%, compared with 14.2% last year.

“New business is growing rapidly in all lines of business, including the Individual Insurance sector, where sales are up 6%, which is excellent in the current environment of consolidation and integration of distribution networks,” said Yvon Charest, president and CEO, in a release.

The stock closed Tuesday up 15¢ at $28.81.