Q1 net income up for Industrial Alliance Insurance and Financial Services

Industrial Alliance Insurance and Financial Services Inc. has posted net income attributed to common shareholders of $82.9 million in 2014 Q1, up 4% from $79.7 million in the first quarter of 2013.

The net income attributed to shareholders was also up when comparing the first quarters of 2014 and 2013 (at $90.0 million and $88.4 million, respectively) as was the book value per share (increasing 3% to $31.49 from $30.67), notes a statement issued Thursday by Industrial Alliance Insurance.

Operating throughout Canada, as well as in the United States, the company offers life and health insurance products, mutual and segregated funds, savings and retirement plans, securities, auto and home insurance, mortgage and car loans, and other financial products and services for both individuals and groups.

Premiums and deposits reached a record of more than $2.1 billion in the first quarter of 2014.

The total is slightly above the company’s best results on record, the company statement notes, adding that assets under management and administration amounted to $102.7 billion, reflecting the increase in equity markets during the quarter and fund inflows.

The report points out sales were strong for segregated funds, Dealer Services, Group Savings and Retirement, and IAHH (Auto and Home Insurance), while year-over-year sales were down in Individual Insurance, Mutual Funds and Employee Plans.

For General insurance, net premiums, premium equivalents and deposits increased from $59.9 million in 2013 Q1 to $68.9 million in 2014 Q1.

Under General Insurance, sales for the Auto and Home Insurance subsidiary totalled $45.3 million in 2014 Q1, up 9% from the first quarter of 2013.

Overall, premiums and deposits were up in three sectors in 2014 Q1 compared to 2013 Q1, the report states. Individual Insurance net premiums were up 6%, Group Savings and Retirement gained 17% and General Insurance was up 15%. But premiums and deposits were slightly lower in the first quarter of 2014 compared to the same quarter in 2013 for the remaining two sectors, Individual Wealth Management and Group Insurance.

For the company as a whole, Industrial Alliance reports the solvency ratio stood at 212% as of March 31, down five percentage points compared to the previous quarter. The decrease is attributable to the impact of macroeconomic factors, namely the decrease in long-term interest rates, the report adds.

“With the increase in equity markets together with our fund inflows during the quarter, our assets under management and administration exceeded the $100-billion mark, representing growth of 17% for the last 12 months,” Yvon Charest, president and CEO of Industrial Alliance, says in the company statement.

“For the fourth quarter in a row, we benefited from a favourable product mix in our Individual Insurance operations that lowered our strain-to-new business ratio, and we had a strong contribution from equity markets,” adds René Chabot, senior vice president and appointed actuary for Industrial Alliance.