Industrial Alliance Releases Second Quarter Results

By Andrew Rickard | August 04 2014 02:18PM

Industrial Alliance has released its financial results for the second quarter of 2014

On July 31, the insurer reported net income of $113.6 million for the quarter, as well as diluted earnings per share of $1.13 (up from $0.74 a year earlier), as well as an annualized shareholders' return on equity of 14.2% (up from 10.5% last year).

While the net experience gain on individual insurance and net segregated fund sales were positive, coming in at $4 million and $35.7 million respectively, the company saw negative net mutual fund sales of $98.0 million. There was also a dip in results from the group savings and retirement division, where sales were $206.5 million compared to the $340.2 million recorded a year earlier. Industrial Alliance says the discrepancy in this last instance is due to the transfer of a large mandate.

"The two main drivers were our retail insurance and wealth management businesses," explained executive vice-president and appointed actuary René Chabot. "In individual insurance, strain on new business and mortality both made a favourable contribution. In addition, the rise in equity markets benefited our retail insurance as well as our wealth management results. Equity markets are an important driver of our fee-earnings assets, up 3% for the quarter and 21% over the last year."