Industrial Alliance has released its financial results for the third quarter of 2016. The company is reporting net income attributed to shareholders of $148.5 million, an increase of 26 per cent compared to the same period last year. iA's profit on in-force business was also up, increasing by 7% over the same quarter in 2015 to $146.5 million. Most of this gain was due to iA's retail and group insurance sectors performing reasonably well.
“In addition, strain on new retail insurance business is even lower than expected because of the strong sales in both Canada and the US,” says René Chabot, executive vice-president, CFO and chief actuary, iA Financial Group.
The company’s group insurance reported a net experience loss of $0.4 million, while employee plans reported favourable claims experience representing a gain of $0.03 per share. iA experienced gains across the third quarter in individual insurance, individual wealth management and groups savings and retirement.
During the quarter, assets under management progressed by four per cent to $126.2 billion, which iA attributed primarily to strong inflows for segregated funds as well as market growth. Premium and deposits of $2.1 billion were up 18% over the previous year, reflecting good inflows during the quarter in the individual and group wealth sectors.
Sales for the group wealth sector increased 85 per cent to $455.1 million as a result of new mandates awarded during the quarter. Total sales for retail insurance increased 17 per cent in Canada and 19 per cent in the US to $75 million. Disability insurance grew by 35 per cent in Canada.
Gross sales for segregated funds meanwhile increased by three per cent to $370.2 million in the third quarter while net sales were $71.6 million. The company reported that it continues to hold first position for net segregated fund sales in Canada and third position for assets.
2016 an outstanding year
Yvon Charest, president and chief executive officer for iA Financial Group says 2016 is proving to be a truly outstanding year for his company and iA remains focused on identifying opportunities for growth in Canada and the US.
“Top-line growth has been robust in virtually all lines of business, profit from Employee Plans has been solid and fund flows from our mutual fund business continue to improve,” he says.