Industrial Alliance's Net Income Drops 14%par Andrew Rickard | November 10 2014 01:05PM
Industrial Alliance has reported its financial results for the third quarter of 2014. The statements reveal that the insurer's net income has declined by 14% compared to the same period in 2013.
For the third quarter of 2014, Industrial Alliance reported net income attributed to common shareholders of $91.5 million and diluted earnings per common share of $0.91. This represents a decline from the $105.8 million and $1.07 reported respectively during the same period last year. The annualized return on shareholders’ equity was also down to 11.2% from 14.9% in the third quarter of 2013. The insurer's solvency ratio at quarter-end was 215%, which is the same as last year.
“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 US,” commented Industrial Alliance’s executive vice-president and chief actuary René Chabot. “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.”