Industrial Alliance realizes objectives

Industrial Alliance Insurance and Financial Services Inc. recently held an Investor Day for the institutional investment community.
Yvon Charest, president and CEO, says the event is meant to offer investors with three primary messages including the Company’s “potential to grow EPS organically in the low double-digit range over the mid-term, including in the Individual Insurance line of business, owing primarily to a strict management of the new business strain.
Highlights at the conference include the Company’s profitability, which indicates that Industrial Alliance consistently reached its objective of a low double-digit growth rate for its net income year-over-year and maintained a return on equity between 13% and 15%. Between 2000 and 2005, recurring shareholder net income increased an average of 14% per year, and the return on equity, adjusted to take into account non-recurring items, held steady at around 14% in the last five years, according to Charest.
The Company’s objective, he adds, is to grow the net income by some 10% to 13%. For 2006, however, Charest says that the Company believes that it can grow the net income by some 10%, not including the gains that could be realized following the decrease in the corporate tax rates announced in the last federal budget.