Industrial Alliance releases Q2 results: profit, return and business growth up sharply
Industrial Alliance Insurance and Financial Services Inc. ended the second quarter of 2010 with net income to common shareholders of $57.7 million, compared to $32.1 million for the second quarter of 2009. Net income to common shareholders amounted to $58.4 million on regular operations, compared with $51.4 million in the second quarter of 2009. This result translates into diluted earnings per common share of $0.69 ($0.64 in the second quarter of 2009) and a return on common shareholders’ equity of 11.7% on an annualized basis and 12.8% for the last twelve months (12.1% and 1.3% respectively in the second quarter of 2009 and for the twelve months ended June 30, 2009).
The higher profit for the quarter was driven primarily by the overall improvement in economic conditions in Canada and the stock market upswing over the last year, despite the downturn in the last few months.
Top-line growth in the second quarter of 2010 was very strong, continuing the momentum of the previous quarters. Premiums and deposits amounted to $1.6 billion, a record for a second quarter and a year-over-year increase of 33%, and value of new business was up 28% to reach $35.9 million in the second quarter. This growth comes primarily from the Individual Wealth Management sector, which benefited from extremely strong segregated fund and mutual fund sales (respective year-over-year increases of 98% and 113%).
“These excellent results once again demonstrate the Company’s vitality and the strength of our business model,” said Yvon Charest, President and Chief Executive Officer, in a press release. “Despite the weakness of the economic recovery and stock market volatility, our return for the last twelve months is within our 12% to 14% target range, and we didn’t post any credit losses. Top-line growth continues to be very strong. Financial strength is also very good. And we took a big step in our US market development strategy by concluding the acquisition of American-Amicable.”
