Industrial Alliance Insurance and Financial Services Inc. today reported a reduced profit for the third quarter after it took a charge related to funds managed by Norshield Asset Management (Canada) Ltd.

During the quarter ended Sept. 30, 2005, the insurer said earned $42.3 million, or 52¢ a share, down from $43.7 million, or 54¢ a share, in the year-earlier period.

Non-recurring items shaved net income by $5.2 million, or 7¢ per share.

Those items included an $8.7 million after-tax provision related to the funds managed by Norshield, a hedge fund company that shocked markets in May by suspending redemptions on its core products.

Industrial Alliance also booked $1.1 million in restructuring charges related to the integration of National Life with the parent company.

These items were offset by a $4.2 million after-tax gain.

Excluding items, the insurer would have earned 59¢ per share, and return on equity of 14.3% for the quarter annualized.

Premiums and deposits rose 33% to $659.1 million.

The insurer increased its dividend by 12% to 14¢ per share from 12.5¢, the second dividend increase this year.