Quebec-based insurer fails to match strong 2016 performance in insurance sales
Industrial Alliance Insurance and Financial Services has reported earnings for the fourth quarter of 2017. The Quebec-based firm reported net income attributed to common shareholders of $132.8 million, diluted earnings per common share (EPS) of $1.24 and return on shareholders' equity (ROE) for year at 11.4%. These results include the net impact of the year-end assumption review that reduced earnings by $0.10 per share.
Discussing the results, René Chabot, EVP, CFO and chief actuary identified the key factors in the firm’s performance last year. "All lines of business reported favourable results in the fourth quarter, particularly employee plans that delivered a solid performance throughout the year. Market growth provided gains in our retail wealth and insurance operations, which were mostly offset by adverse lapse in our individual insurance business and HollisWealth integration costs.”
Premiums and deposits for iA increased to $2.4 billion (+7%) reflecting strong inflows in the individual wealth and group insurance sectors. Assets under management and administration reached a new high of $169.5 billion (+34% year-over-year), benefitting primarily from the transfer of assets from the HollisWealth acquisition completed in August 2017.
The retail insurance sector in Canada and the US reported total sales of $74.9 million (-20%). Sales in Canada amounted to $52.8 million (including $5.5 million for adjustable disability) and the United States accounted for $22.1 million. In Canada, results reflect the impact of the new tax legislation that came into effect on January 1, 2017 that stimulated sales in the fourth quarter of 2016. In the US sales were slowed by changes to a temporary life product, pricing updates as well as the impact of hurricanes. For the full year, total retail insurance sales in Canada and the US amounted to $288.1 million (-6%).
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