Insurer Industrial Alliance Q3 profit soars 17 per cent as stock markets improve

By The Canadian Press

QUEBEC CITY, Que. - Resurgent stock markets helped power revenues at Industrial Alliance Insurance and Financial Services Inc. (TSX: IAG.TO), the insurer reporting third-quarter net income to common shareholders up 17 per cent to $60.1 million.

Industrial Alliance reported net earnings per share of 74 cents, versus 63 cents in the prior-year period.

"Our strict management during the crisis and the general improvement in market conditions are paying off," president and CEO Yvon Charest said in a statement.

"Profit was up sharply during the quarter. The return rose to the upper end of our target range. Assets reached a new high. Sales growth has resumed in the retail sectors and even jumped considerably in the individual insurance sector."

The Quebec City-based insurer said its revenue spiked to $1.69 billion from $818 million and it posted no credit losses, and no new provisions for future policy benefits.

Assets under management grew to $56.7 billion and the end of the quarter from $53.96 billion at the end of the same period last year.

Shares in the company were up 69 cents, 2.4 per cent, to $30.03 in midday trading on the Toronto stock Exchange.