Industrial Alliance reports third quarter net income of $91.5 million

Industrial Alliance Insurance and Financial Services has reported a net income attributed to common shareholders of $91.5 million for the three months ended Sept. 30, down from $105.8 million in the third quarter last year.

Premiums and deposits for the quarter totaled $1.8 billion, according to the earnings release from the company on Wednesday.

Individual Insurance had an experience loss of $5.0 million for the quarter, while group Insurance reported an experience loss of $4.1 million.

The annualized return on shareholders’ equity was 11.2%, and the solvency ratio at the end of the quarter was 215%.

“Despite some weakness in equity markets this past quarter, we are pleased to report positive fund flows and a significant pickup in premiums and deposits,” Yvon Charest, president and CEO of Industrial Alliance commented in a statement on the results.

“Our seg fund business was a key driver along with Group Savings and Retirement, both of which had markedly higher inflows in the quarter.”

“Our earnings came in within guidance for the quarter despite being a little lower than expected. Items of note include policyholder claims, higher than expected strain on new retail insurance business and a one-time charge related to unclaimed death benefits in the U.S.,” René Chabot, executive vice President and chief actuary also noted.

“IA Auto and Home benefited from favourable weather conditions and delivered a good contribution. For the year to date, our earnings are strong and we remain confident that we can deliver the top of our earnings guidance for the full year.”