Industrial Alliance Insurance and Financial Services announced Aug. 3 that its net income attributed to common shareholders for the second quarter of 2017 was $127.5 million, a nine per cent decline from the $139.5 million reported for the same quarter of 2016.
For the quarter, diluted earnings per common share were $1.19 compared to $1.35 for Q2 2016 (down 12 per cent).The company also reported return on equity for the last twelve months of 12.9 per cent.
Premiums and deposits up 26 per cent
"Our top line continues to grow with premiums and deposits up 26 per cent during the second quarter," said Yvon Charest, President and CEO of iA Financial Group. "Wealth management, a key area of growth for us, is showing sustained momentum, and HollisWealth will be a very good addition. We are also pleased to note the strong growth in our group operations, which is in line with our aim for them to become a more meaningful contributor to iA Financial Group."
In the retail insurance sector, including activities in both Canada and the US, sales amounted to $74.8 million in the second quarter for an increase of three per cent. Total sales in Canada amounted to $48.0 million and the U.S. sales accounted for $26.8 million.
In retail wealth management, the Company reported a fourth consecutive quarter of positive net fund sales attributed to the improvement in its mutual fund business. “Gross sales of mutual funds increased by 77 per cent to $560.1 million in the second quarter, and net sales of $76.9 million compared with net outflows of $121.3 million in the same quarter a year earlier,” stated the company.
Gross sales of segregated funds totalled $453.8 million, up 29 per cent in the second quarter, while net sales more than doubled to $130.0 million from $53.4 million in 2016. The company says it “continues to hold first position for net segregated fund sales in Canada and third position for assets.”