Accessibility Statement Skip Navigation
  • Resources
  • Investor Relations
  • Journalists
  • Webcasts
  • Français
  • my CNW 
    • Login
    • Register
  • Client Login
  • Sign Up
  • Send a Release
Return to PR Newswire homepage
  • News
  • Products
  • Contact
Search
When typing in this field, a list of search results will appear and be automatically updated as you type.

Searching for your content...

No results found. Please change your search terms and try again.

News Releases

view all
    Advanced Search
    • News in Focus
        • Browse News Releases

        • All News Releases
        • All Public Company
        • News Releases Overview

        • Multimedia Gallery

        • All Multimedia
        • All Photos
        • All Videos
        • Multimedia Gallery Overview

        • Trending Topics

        • All Trending Topics
    • Business
        • Auto & Transportation

        • Aerospace, Defense
        • Air Freight
        • Airlines & Aviation
        • Automotive
        • Maritime & Shipbuilding
        • Railroads and Intermodal Transportation
        • Supply Chain/Logistics
        • Transportation, Trucking & Railroad
        • Travel
        • Trucking and Road Transportation
        • Auto & Transportation Overview

        • View All Auto & Transportation

        • Business Technology

        • Blockchain
        • Broadcast Tech
        • Computer & Electronics
        • Computer Hardware
        • Computer Software
        • Data Analytics
        • Electronic Commerce
        • Electronic Components
        • Electronic Design Automation
        • Financial Technology
        • High Tech Security
        • Internet Technology
        • Nanotechnology
        • Networks
        • Peripherals
        • Semiconductors
        • Business Technology Overview

        • View All Business Technology

        • Entertain­ment & Media

        • Advertising
        • Art
        • Books
        • Entertainment
        • Film and Motion Picture
        • Magazines
        • Music
        • Publishing & Information Services
        • Radio & Podcast
        • Television
        • Entertainment & Media Overview

        • View All Entertain­ment & Media

        • Financial Services & Investing

        • Accounting News & Issues
        • Acquisitions, Mergers and Takeovers
        • Banking & Financial Services
        • Bankruptcy
        • Bond & Stock Ratings
        • Conference Call Announcements
        • Contracts
        • Cryptocurrency
        • Dividends
        • Earnings
        • Earnings Forecasts & Projections
        • Financing Agreements
        • Insurance
        • Investments Opinions
        • Joint Ventures
        • Mutual Funds
        • Private Placement
        • Real Estate
        • Restructuring & Recapitalization
        • Sales Reports
        • Shareholder Activism
        • Shareholder Meetings
        • Stock Offering
        • Stock Split
        • Venture Capital
        • Financial Services & Investing Overview

        • View All Financial Services & Investing

        • General Business

        • Awards
        • Commercial Real Estate
        • Corporate Expansion
        • Earnings
        • Environmental, Social and Governance (ESG)
        • Human Resource & Workforce Management
        • Licensing
        • New Products & Services
        • Obituaries
        • Outsourcing Businesses
        • Personnel Announcements
        • Real Estate Transactions
        • Residential Real Estate
        • Small Business Services
        • Socially Responsible Investing
        • Surveys, Polls and Research
        • Trade Show News
        • General Business Overview

        • View All General Business

    • Science & Tech
        • Consumer Technology

        • Artificial Intelligence
        • Blockchain
        • Cloud Computing/Internet of Things
        • Computer Electronics
        • Computer Hardware
        • Computer Software
        • Consumer Electronics
        • Cryptocurrency
        • Data Analytics
        • Electronic Commerce
        • Electronic Gaming
        • Financial Technology
        • Mobile Entertainment
        • Multimedia & Internet
        • Peripherals
        • Social Media
        • STEM (Science, Tech, Engineering, Math)
        • Supply Chain/Logistics
        • Wireless Communications
        • Consumer Technology Overview

        • View All Consumer Technology

        • Energy & Natural Resources

        • Alternative Energies
        • Chemical
        • Electrical Utilities
        • Gas
        • General Manufacturing
        • Mining
        • Mining & Metals
        • Oil & Energy
        • Oil and Gas Discoveries
        • Utilities
        • Water Utilities
        • Energy & Natural Resources Overview

        • View All Energy & Natural Resources

        • Environ­ment

        • Conservation & Recycling
        • Environmental Issues
        • Environmental Policy
        • Environmental Products & Services
        • Green Technology
        • Natural Disasters
        • Environment Overview

        • View All Environ­ment

        • Heavy Industry & Manufacturing

        • Aerospace & Defense
        • Agriculture
        • Chemical
        • Construction & Building
        • General Manufacturing
        • HVAC (Heating, Ventilation and Air-Conditioning)
        • Machinery
        • Machine Tools, Metalworking and Metallurgy
        • Mining
        • Mining & Metals
        • Paper, Forest Products & Containers
        • Precious Metals
        • Textiles
        • Tobacco
        • Heavy Industry & Manufacturing Overview

        • View All Heavy Industry & Manufacturing

        • Telecomm­unications

        • Carriers and Services
        • Mobile Entertainment
        • Networks
        • Peripherals
        • Telecommunications Equipment
        • Telecommunications Industry
        • VoIP (Voice over Internet Protocol)
        • Wireless Communications
        • Telecommunications Overview

        • View All Telecomm­unications

    • Lifestyle & Health
        • Consumer Products & Retail

        • Animals & Pets
        • Beers, Wines and Spirits
        • Beverages
        • Bridal Services
        • Cannabis
        • Cosmetics and Personal Care
        • Fashion
        • Food & Beverages
        • Furniture and Furnishings
        • Home Improvement
        • Household, Consumer & Cosmetics
        • Household Products
        • Jewelry
        • Non-Alcoholic Beverages
        • Office Products
        • Organic Food
        • Product Recalls
        • Restaurants
        • Retail
        • Supermarkets
        • Toys
        • Consumer Products & Retail Overview

        • View All Consumer Products & Retail

        • Entertain­ment & Media

        • Advertising
        • Art
        • Books
        • Entertainment
        • Film and Motion Picture
        • Magazines
        • Music
        • Publishing & Information Services
        • Radio & Podcast
        • Television
        • Entertainment & Media Overview

        • View All Entertain­ment & Media

        • Health

        • Biometrics
        • Biotechnology
        • Clinical Trials & Medical Discoveries
        • Dentistry
        • FDA Approval
        • Fitness/Wellness
        • Health Care & Hospitals
        • Health Insurance
        • Infection Control
        • International Medical Approval
        • Medical Equipment
        • Medical Pharmaceuticals
        • Mental Health
        • Pharmaceuticals
        • Supplementary Medicine
        • Health Overview

        • View All Health

        • Sports

        • General Sports
        • Outdoors, Camping & Hiking
        • Sporting Events
        • Sports Equipment & Accessories
        • Sports Overview

        • View All Sports

        • Travel

        • Amusement Parks and Tourist Attractions
        • Gambling & Casinos
        • Hotels and Resorts
        • Leisure & Tourism
        • Outdoors, Camping & Hiking
        • Passenger Aviation
        • Travel Industry
        • Travel Overview

        • View All Travel

    • Policy & Public Interest
        • Policy & Public Interest

        • Advocacy Group Opinion
        • Animal Welfare
        • Canadian Federal Government
        • Canadian Municipal Government
        • Canadian Provincial Government
        • Corporate Social Responsibility
        • Domestic Policy
        • Economic News, Trends, Analysis
        • Education
        • Environmental
        • European Government
        • FDA Approval
        • Federal and State Legislation
        • Federal Executive Branch & Agency
        • Foreign Policy & International Affairs
        • Homeland Security
        • Labor & Union
        • Legal Issues
        • Natural Disasters
        • Not For Profit
        • Patent Law
        • Public Safety
        • Trade Policy
        • Policy & Public Interest Overview

        • View All Policy & Public Interest

    • People & Culture
        • People & Culture

        • Aboriginal, First Nations & Native American
        • African American
        • Asian American
        • Children
        • Diversity, Equity & Inclusion
        • Hispanic
        • Lesbian, Gay & Bisexual
        • Men's Interest
        • People with Disabilities
        • Religion
        • Senior Citizens
        • Veterans
        • Women
        • People & Culture Overview

        • View All People & Culture

    • Advanced Search
    • Explore Our Platform
    • Plan Campaigns
    • Create with AI
    • Distribute Press Releases
    • Report Results
    • Amplify Content
    • IR
    • All Products
    • Become a Client
    • Request a Demo
    • Editorial Bureaus
    • Partnerships
    • General Enquiries
    • Media
    • Worldwide Offices
    • Hamburger menu
    • Cision Canada
    • Send a Release
    • FR
      • Phone

      • 877-269-7890 from 8 AM - 10 PM ET

      • ALL CONTACT INFO
      • Contact Cision

        877-269-7890
        from 8 AM - 10 PM ET

    • Searching for your content...

      No results found. Please change your search terms and try again.

      News Releases

      view all
      Close menu
    • News
    • Products
    • Contact
      • Send a Release
      • Sign Up
      • Resources
      • Investor Relations
      • Journalists
      • Webcasts
      • my CNW
      • GDPR
      • 3 News in Focus
      • 5 Business
      • 5 Science & Tech
      • 5 Lifestyle & Health
      • 1 Policy & Public Interest
      • 1 People & Culture
      • Send a Release
      • Sign Up
      • Resources
      • Investor Relations
      • Journalists
      • Webcasts
      • my CNW
      • GDPR
      • Explore Our Platform
      • Plan Campaigns
      • Create with AI
      • Distribute Press Releases
      • Report Results
      • Amplify Content
      • IR
      • All Products
      • Send a Release
      • Sign Up
      • Resources
      • Investor Relations
      • Journalists
      • Webcasts
      • my CNW
      • GDPR
      • Become a Client
      • Request a Demo
      • Editorial Bureaus
      • Partnerships
      • General Enquiries
      • Media
      • Worldwide Offices
      • General Enquiries
      • Send a Release
      • Sign Up
      • Resources
      • Investor Relations
      • Journalists
      • Webcasts
      • my CNW
      • GDPR
      Close submenu (News in Focus) News in Focus
      • Browse News Releases
      • Multimedia Gallery
      • Trending Topics
      Close submenu (Business) Business
      • Auto & Transportation
      • Business Technology
      • Entertain­ment & Media
      • Financial Services & Investing
      • General Business
      Close submenu (Science & Tech) Science & Tech
      • Consumer Technology
      • Energy & Natural Resources
      • Environ­ment
      • Heavy Industry & Manufacturing
      • Telecomm­unications
      Close submenu (Lifestyle & Health) Lifestyle & Health
      • Consumer Products & Retail
      • Entertain­ment & Media
      • Health
      • Sports
      • Travel
      Close submenu (Policy & Public Interest) Policy & Public Interest
      • Policy & Public Interest
      Close submenu (People & Culture) People & Culture
      • People & Culture

      Industrial Alliance Reports Fourth Quarter and Year-end Results


      News provided by

      Industrial Alliance Insurance and Financial Services Inc.

      Feb 13, 2014, 09:02 ET

      Share this article

      Share this article


      A full discussion of our fourth-quarter and full-year results is available at www.inalco.com under Investor Relations/Financial Reports.

      A strong finish to the year with a dividend increase of 6%

      • Q4 earnings up 26% to $91.1 M ($0.91 EPS)
      • 2013 earnings up 15% to $349.9 M ($3.57 EPS)
      • Return on shareholders' equity of 12.6% (12.2% for Q4)
      • Book value up 12% YoY to $30.67
      • Solvency ratio of 217%
      • Quarterly dividend increases 6% to 26¢ per common share

      QUEBEC CITY, Feb. 13, 2014 /CNW Telbec/ - For the fourth quarter ended December 31, 2013, Industrial Alliance Insurance and Financial Services Inc. (TSX: IAG) reports net income attributed to common shareholders of $91.1 million, up 26% over last year. Diluted earnings per common share increased to $0.91 from $0.76 a year ago, and the annualized return on shareholders' equity was 12.2%.

      For the year ended December 31, 2013, net income attributed to common shareholders increased 15% to $349.9 million. Diluted earnings per common share increased to $3.57 from $3.22 a year ago, and the return on shareholders' equity was 12.6%.

      At December 31, 2013, the Company's book value was $30.67, up 12% over the previous year-end. The solvency ratio was 217% versus 227% at September 30, 2013, reflecting the acquisition of Jovian Capital on October 1st and the redemption of preferred shares on December 31st.

      These results, which include the impact of year-end assumption changes and the previously announced restructuring provision for Jovian Capital Corporation, exceed the annual guidance provided by management for earnings per common share ($3.00 to $3.40), return on shareholders' equity (10.5% to 12.0%) and the solvency ratio (175% to 200%).

      "Our fourth quarter results capped one of the best performances in our history," commented Yvon Charest, President and Chief Executive Officer. "The improvement in profit from our Individual Insurance operations and the continued strong contribution from our less capital-intensive businesses, together with a more favourable macroeconomic environment, enabled us to deliver significant year over year growth in earnings. Given these excellent results, we are pleased to announce that the Board of Directors has approved an increase in the quarterly dividend on common shares."

      René Chabot, Senior Vice-President and Appointed Actuary added, "Even with our year-end assumption review and the provision for Jovian, we exceeded our earnings guidance for both the quarter and the year. We kept the strain-to-new business ratio below 25% and maintained a strong capital position throughout the year. As for our balance sheet, our financial flexibility is well within the levels expected of a company with our strong credit ratings, and both our reserves and solvency ratio can absorb a sizeable drop in equity markets."

       
      Highlights
        Fourth quarter Year ended December 31
      (In millions of dollars, unless otherwise indicated) 2013 20121 Variation 2013 20121 Variation
      Net income attributed to shareholders 99.8 80.7 24% 384.5 333.7 15%
      Less: preferred share dividends 8.7 8.6 1% 34.6 30.1 15%
      Net income attributed to common shareholders 91.1 72.1 26% 349.9 303.6 15%
      Less: gain on sale of US annuity business -- -- -- -- 37.4 --
      Net income attributed to common shareholders on continuing activities 91.1 72.1 26% 349.9 266.2 31%
      Earnings per common share (diluted) $0.91 $0.76 $0.15 $3.57 $3.222 $0.35
      Return on common shareholders' equity 3 12.2% 11.7% 50 bps 12.6% 12.8% (20 bps)
        December 31, 2013 September 30, 2013 December 31, 2012
      Solvency ratio 217% 227% 217%
      Book value per share $30.67 $29.34 $27.451
      Assets under management and administration 98,693 89,028 83,4651
      Net impaired investments as a % of total investments 0.06% 0.06% 0.04%
      1 Restated for comparability following the adoption of IFRS 10 and the amendment to IAS 19 (Employee Benefits) effective January 1, 2013.
      2 Diluted earnings per common share of $3.34 excluding the dilutive impact of the innovative Tier 1 debt instruments (IATS) redeemed on June 30, 2013.
      3 Annualized for the quarter. Trailing twelve months for the year.


      FOURTH QUARTER HIGHLIGHTS

      Profitability - For the fourth quarter ended December 31, 2013, Industrial Alliance reports net income attributed to common shareholders of $91.1 million, a year over year increase of 26%. Diluted earnings per share amounted to $0.91 compared with $0.76 in the same quarter last year. The annualized shareholders' return on equity was 12.2% versus 11.7% last year.

      The key elements that explain profitability follow. All figures are after taxes unless otherwise indicated.

      Year-end assumption changes - Actuarial reserves were strengthened by a net amount of $6.1 million or $0.06 per share. Among the key changes, the continued improvement in mortality rates and the increase in long-term interest rates during 2013 contributed positively to assumption changes, while reserves were strengthened for lapse and ultimate reinvestment rate (-10 bps) assumptions.

      Jovian restructuring - A provision of $4.6 million or $0.05 per share was taken for restructuring costs associated with the acquisition of Jovian Capital Corporation. Fourth quarter results also included acquisition costs of $0.01 per share.

      Individual Insurance reported an experience gain of $0.10 per share ($10.1 million). The increase in equity markets contributed $0.06 per share, while morbidity ($0.02 EPS) and investment gains ($0.02 EPS) accounted for the remainder.

      Individual Wealth Management had an experience gain of $0.01 per share ($1.0 million). The dynamic hedging program for the segregated funds guarantee provided a benefit of $0.06 per share and the growth in equity markets contributed $0.05 per share. This was offset principally by acquisition and restructuring costs of $0.06 per share for Jovian as well as one-time expenses representing $0.04 per share.

      Group Insurance reported an experience loss of $0.02 per share ($1.4 million) attributed to higher claims for health and dental benefits in Employee Plans. Both Dealer Services and Special Market Solutions were in line or above expectations.

      Group Savings and Retirement contributed $0.04 per share ($3.8 million) related to fees on a large service contract.

      Strain - In the Individual Insurance sector, the strain-to-new business ratio of 11% compared with guidance of 15% for the fourth quarter. Management estimates that strain improvement represented $0.03 per share, attributed to a favourable sales mix and lower sales. For the full year, strain was 21% compared with guidance of 25%.

      Income on capital - Total income on capital of $17.5 million pre-tax compares with $24.8 million in the third quarter. The fourth quarter principally reflects a lower contribution from IA Auto and Home (-$2.3 million) and lower investment income (-$3.9 million).

      Income taxes - The effective tax rate was 18.5% for the quarter and 21% for the full year, compared with our guidance of 21% to 24%. The fourth quarter reflects the realization of corporate tax efficiencies and an increase in the fair value of real estate.

      Business Growth - Premiums and deposits amounted to $1.8 billion in the fourth quarter, which represents an increase of 5% over the same quarter last year. Assets under management and administration reached $98.7 billion at year-end ($83.5 billion a year ago), reflecting the increase in equity markets, strong mutual fund inflows as well as the assets acquired with Jovian Capital ($6.4 billion).

      In the Individual sectors, wealth management excelled with the mutual fund segment delivering strong growth for a fifth consecutive quarter with gross sales of $540.5 million. Net mutual fund sales of $111.2 million more than offset the decrease in net sales of segregated funds during the quarter. Insurance sales in the fourth quarter were down by 17% (4% for the full year), with sales amounting to $57.2 million versus $69.2 million a year ago.

      In the Group sectors, Special Market Solutions lead the growth with sales of $48.7 million (+10%). In Dealer Services, sales of creditor insurance increased to $90.1 million (+6%) and sales of P&C products increased to $32.8 million (+6%). Employee Plans reported sales of $8.1 million, comparable to the previous year. Group Savings and Retirement reported sales of $253.5 million (+6%).

      Capital - At December 31, 2013, the solvency ratio was 217% compared with 227% at September, 2013. The key elements explaining the decrease are the acquisition of Jovian Capital on October 1, 2013 (-5%) and the redemption of all the issued and outstanding Class A Preferred Shares Series C on December 31, 2013 (-6%).

      Quality of Investments - At December 31, 2013, net impaired investments stood at 0.06% of total investments, the proportion of bonds rated BB and lower was 0.18% and the real estate occupancy rate was 94%. All these measures were unchanged from the previous quarter end.

      Dividend - The Board of Directors increased the quarterly dividend by 6% to 26 cents on its outstanding common shares. This dividend is payable on March 17, 2014 to shareholders of record as at February 28, 2014.

      Dividend Reinvestment - Registered shareholders wishing to enroll in the Company's Dividend Reinvestment and Share Purchase Plan so as to be eligible to reinvest the next dividend payable on March 17th must ensure that the duly completed form is delivered to Computershare no later than 4:00 p.m. on February 21, 2014. Enrollment information is provided on the Company's website at www.inalco.com under Investor Relations/Dividends.

      Macroeconomic Sensitivity - Following the update of its sensitivity analysis at December 31, 2013:

      • The Company can absorb a sudden decrease of about 23% in the S&P/TSX index before having to strengthen reserves for policyholder liabilities (16% at September 30, 2013).

      • The Company can absorb a sudden decrease of 36% in the S&P/TSX index before the solvency ratio drops below 175% (37% at September 30, 2013) and a decrease of 48% before the solvency ratio drops below 150% (49% at September 30, 2013).

      • The full-year impact on net income attributed to common shareholders of a sudden 10% decrease in the stock markets is $25 million ($24 million at September 30, 2013). This does not take into consideration any potential reserve strengthening.

      • The impact on net income attributed to common shareholders of a 10 basis point decrease in the initial and ultimate reinvestment rates totals $79 million ($73 million at September 30, 2013).

      Market Guidance for 2014

      • Earnings per common share: target range increased to $3.40 to $3.80
      • Return on common shareholders' equity (ROE): target range increased to 11.0% to 12.5%
      • Solvency ratio: target range remains unchanged at 175% to 200%
      • Dividend payout ratio: payout range remains unchanged at 25% to 35% with the target being the mid-point
      • Effective tax rate: target range reduced to 18% to 22%
      • Strain on new business: unchanged at 25% of sales

      Guidance for ROE and earnings per common share excludes any potential reserve strengthening in 2014.

      GENERAL INFORMATION

      Non-IFRS Financial Information
      The Company reports its financial results in accordance with International Financial Reporting Standards(IFRS). It also publishes certain non-IFRS financial measures that do not have an IFRS equivalent, including sales, value of new business, embedded value and solvency ratio, or which have an IFRS equivalent such as data on operating profit and income taxes on earnings presented in the sources of earnings table. The Company also uses non-IFRS adjusted data in relation to net income, earnings per share and return on equity. These non-IFRS financial measures are always accompanied by and reconciled with IFRS financial measures. The Company believes that these non-IFRS financial measures provide investors and analysts with additional information to better understand the Company's financial results as well as assess its growth and earnings potential. Since non-IFRS financial measures do not have a standardized definition, they may differ from the non-IFRS financial measures used by other institutions. The Company strongly encourages investors to review its financial statements and other publicly-filed reports in their entirety and not to rely on any single financial measure.

      Conference Call
      Management will hold a conference call to present the Company's results on Thursday, February 13, 2014 at 12 p.m. (noon) (ET). To listen in on the conference call, dial 1 800 619-2686 (toll-free). A replay of the conference call will also be available for a one-week period, starting at 2:30 p.m. on Thursday, February 13, 2014. To listen to the conference call replay, dial 1 800 558-5253 (toll-free) and enter access code 21698300. A webcast of the conference call (in listen only mode) will also be available on the Industrial Alliance website at www.inalco.com.

      Documents Related to the Financial Results
      For a detailed discussion of the Company's fourth quarter and year-end results, investors are invited to consult the MD&A for the year ended December 31, 2013, related consolidated financial statements and accompanying notes as well as our supplemental information package, all of which are available on the Industrial Alliance website at www.inalco.com under Investor Relations / Financial Reports and on SEDAR at www.sedar.com.

      Forward-looking Statements
      This press release may contain statements relating to strategies used by Industrial Alliance or statements that are predictive in nature, that depend upon or refer to future events or conditions, or that include words such as "may", "will", "could", "should", "would", "suspect", "expect", "anticipate", "intend", "plan", "believe", "estimate", and "continue" (or the negative thereof), as well as words such as "objective" or "goal" or other similar words or expressions. Such statements constitute forward-looking statements within the meaning of securities laws. Forward-looking statements include, but are not limited to, information concerning the Company's possible or assumed future operating results. These statements are not historical facts; they represent only the Company's expectations, estimates and projections regarding future events.

      Although Industrial Alliance believes that the expectations reflected in such forward-looking statements are reasonable, such statements involve risks and uncertainties, and undue reliance should not be placed on such statements. Certain material factors or assumptions are applied in making forward-looking statements, and actual results may differ materially from those expressed or implied in such statements. Factors that could cause actual results to differ materially from expectations include, but are not limited to: general business and economic conditions; level of competition and consolidation; changes in laws and regulations including tax laws; liquidity of Industrial Alliance including the availability of financing to meet existing financial commitments on their expected maturity dates when required; accuracy of information received from counterparties and the ability of counterparties to meet their obligations; accuracy of accounting policies and actuarial methods used by Industrial Alliance; insurance risks including mortality, morbidity, longevity and policyholder behaviour including the occurrence of natural or man-made disasters, pandemic diseases and acts of terrorism.

      Additional information about the material factors that could cause actual results to differ materially from expectations and about material factors or assumptions applied in making forward-looking statements may be found in the "Risk Management" section of the 2013 Management's Discussion and Analysis and in the "Management of Risks Associated with Financial Instruments" note to Industrial Alliance's consolidated financial statements, and elsewhere in Industrial Alliance's filings with Canadian securities regulators, which are available for review at www.sedar.com.

      The forward-looking statements in this news release reflect the Company's expectations as of the date of this press release. Industrial Alliance does not undertake to update or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this document or to reflect the occurrence of unanticipated events, except as required by law.

      About Industrial Alliance
      Founded in 1892, Industrial Alliance Insurance and Financial Services Inc. operates throughout Canada as well as in the United States. The Company offers life and health insurance products, mutual and segregated funds, savings and retirement plans, securities, auto and home insurance, mortgage and car loans and other financial products and services for both individuals and groups. Ranked among the top four life and health insurance companies in Canada, Industrial Alliance is one of Canada's largest public companies and trades on the Toronto Stock Exchange under the ticker symbol IAG.



      CONSOLIDATED INCOME STATEMENTS    
           
        Quarters ended
      December 31
      Twelve months ended
      December 31
      (in millions of dollars, unless otherwise indicated) 2013 20121 2013 20121
        $ $ $ $
      Revenues        
      Premiums        
      Gross premiums 1,364 1,331 5,431 5,372
      Premiums ceded (108) (122) (424) (376)
      Net premiums 1,256 1,209 5,007 4,996
      Investment Income        
      Interest and other investment income 272 317 964 990
      Change in fair value of financial assets classified at fair value through profit or loss 70 18 (879) 559
        342 335 85 1,549
      Other revenues 252 217 931 934
        1,850 1,761 6,023 7,479
      Policy benefits and expenses        
      Gross benefits on contracts 955 896 3,795 3,560
      Ceded benefits on contracts (75) (105) (318) (270)
      Net transfer to segregated funds 73 92 208 505
      Increase (decrease) in insurance contract liabilities 30 397 (628) 1,394
      Increase (decrease) in investment contract liabilities 4 4 9 20
      Decrease (increase) in reinsurance assets 216 (104) 466 (90)
        1,203 1,180 3,532 5,119
      Commissions 260 260 1,038 1,014
      General expenses 233 202 816 764
      Premium and other taxes 19 16 86 84
      Financing charges 11 13 60 52
        1,726 1,671 5,532 7,033
      Income before income taxes 124 90 491 446
      Income taxes 23 9 103 109
      Net income 101 81 388 337
      Net income attributed to participating policyholders 1 --- 3 3
      Net income attributed to shareholders 100 81 385 334
      Dividends attributed to preferred shares 9 9 35 30
      Net income attributed to common shareholders 91 72 350 304
      Earnings per common share (in dollars)        
        Basic 0.92 0.79 3.60 3.35
        Diluted 0.91 0.76 3.57 3.22
      Weighted average number of shares outstanding (in millions of units)        
        Basic 99.1 90.7 97.2 90.6
        Diluted 100.1 96.3 97.9 96.2
               
      Dividends per common share (in dollars) 0.245 0.245 0.98 0.98
      1The 2012 figures were adjusted to consider the adoption of the IAS-19 amendment.


      CONSOLIDATED STATEMENTS OF FINANCIAL POSITION  
           
      (in millions of dollars) As at December 31
        2013 20121
        $ $
      Assets    
      Cash and short-term investments 523 1,096
      Bonds 15,107 14,643
      Stocks 3,120 2,795
      Mortgages 2,597 2,603
      Derivative financial instruments 72 145
      Policy loans 612 558
      Other invested assets 80 190
      Investment properties 1,079 953
      Total investments 23,190 22,983
      Other assets 1,432 951
      Reinsurance assets 1,591 1,968
      Fixed assets 145 126
      Deferred income tax assets 40 55
      Intangible assets 530 461
      Goodwill 181 153
      General fund assets 27,109 26,697
      Segregated funds net assets 16,921 15,021
      Total assets 44,030 41,718
           
      Liabilities    
      Insurance contract liabilities 19,288 19,828
      Investment contract liabilities 647 615
      Derivative financial instruments 288 53
      Other liabilities 2,520 2,008
      Deferred income tax liabilities 199 221
      Debentures 499 758
      General fund liabilities 23,441 23,483
      Segregated funds liabilities 16,921 15,021
      Total liabilities 40,362 38,504
      Equity    
      Share capital and contributed surplus 1,779 1,577
      Retained earnings and accumulated other comprehensive income 1,842 1,593
      Participating policyholders' account 47 44
        3,668 3,214
      Total liabilities and equity 44,030 41,718
      1The 2012 figures were adjusted to consider the adoption of the IAS-19 amendment and IFRS-10 standard.


      SEGMENTED INCOME STATEMENTS
       
      The following tables present a summary of income by sector of activities:
         
      (in millions of dollars) Quarter ended December 31, 2013
        Individual Group    
        Insurance Wealth
      Management
      Insurance Savings and
      Retirement
      Other Total
        $ $ $ $ $ $
      Revenues            
      Net premiums 362 273 315 238 68 1,256
      Investment income 427 (30) 30 39 (124) 342
      Other revenues 32 222 11 22 (35) 252
        821 465 356 299 (91) 1,850
      Operating expenses            
      Gross benefits on contracts 205 323 201 188 38 955
      Ceded benefits on contracts (49) (8) (15) (6) 3 (75)
      Net transfer to segregated funds --- (22) --- 95 --- 73
      Increase (decrease) in insurance contract liabilities 69 (64) 22 (6) 9 30
      Increase (decrease) in investment contract liabilities 1 --- 3 --- --- 4
      Decrease (increase) in reinsurance assets 221 4 8 (8) (9) 216
      Commissions, general and other expenses 185 193 122 19 (7) 512
      Financing charges 73 3 --- 1 (66) 11
        705 429 341 283 (32) 1,726
      Income before income taxes 116 36 15 16 (59) 124
      Income taxes 5 11 2 3 2 23
      Net income before allocation of other activities 111 25 13 13 (61) 101
      Allocation of other activities (50) (3) (5) (3) 61 ---
      Net income 61 22 8 10 --- 101
      Net income attributed to participating policyholders 1 --- --- --- --- 1
      Net income attributed to shareholders 60 22 8 10 --- 100
         
      (in millions of dollars) Quarter ended December 31, 20121
        Individual Group    
        Insurance Wealth
      Management
      Insurance Savings and
      Retirement
      Other Total
        $ $ $ $ $ $
      Revenues            
      Net premiums 353 297 301 201 57 1,209
      Investment income 331 (11) 24 41 (50) 335
      Other revenues 13 191 14 15 (16) 217
        697 477 339 257 (9) 1,761
      Operating expenses            
      Gross benefits on contracts 162 318 201 183 32 896
      Ceded benefits on contracts (52) (21) (29) (6) 3 (105)
      Net transfer to segregated funds --- 18 --- 74 --- 92
      Increase (decrease) in insurance contract liabilities 428 (26) 25 (21) (9) 397
      Increase (decrease) in investment contract liabilities --- --- 4 --- --- 4
      Decrease (increase) in reinsurance assets (110) (8) 8 --- 6 (104)
      Commissions, general and other expenses 179 162 117 19 1 478
      Financing charges 10 2 2 --- (1) 13
        617 445 328 249 32 1,671
      Income before income taxes 80 32 11 8 (41) 90
      Income taxes (19) 10 3 2 13 9
      Net income before allocation of other activities 99 22 8 6 (54) 81
      Allocation of other activities (48) 1 (5) (2) 54 ---
      Net income 51 23 3 4 --- 81
      Net income attributed to participating policyholders --- --- --- --- --- ---
      Net income attributed to shareholders 51 23 3 4 --- 81
       
      (in millions of dollars) Twelve months ended December 31, 2013
        Individual Group    
        Insurance Wealth
      Management
      Insurance Savings and
      Retirement
      Other Total
        $ $ $ $ $ $
      Revenues            
      Net premiums 1,425 1,107 1,273 944 258 5,007
      Investment income 297 (145) 64 58 (189) 85
      Other revenues 78 826 54 67 (94) 931
        1,800 1,788 1,391 1,069 (25) 6,023
      Operating expenses            
      Gross benefits on contracts 709 1,291 811 836 148 3,795
      Ceded benefits on contracts (209) (36) (59) (25) 11 (318)
      Net transfer to segregated funds --- (61) --- 269 --- 208
      Increase (decrease) in insurance contract liabilities (77) (511) 68 (116) 8 (628)
      Increase (decrease) in investment contract liabilities 1 --- 8 --- --- 9
      Decrease (increase) in reinsurance assets 210 260 9 (4) (9) 466
      Commissions, general and other expenses 698 682 497 70 (7) 1,940
      Financing charges 111 12 5 3 (71) 60
        1,443 1,637 1,339 1,033 80 5,532
      Income before income taxes 357 151 52 36 (105) 491
      Income taxes 39 41 9 7 7 103
      Net income before allocation of other activities 318 110 43 29 (112) 388
      Allocation of other activities (99) (3) (4) (6) 112 ---
      Net income 219 107 39 23 --- 388
      Net income attributed to participating policyholders 3 --- --- --- --- 3
      Net income attributed to shareholders 216 107 39 23 --- 385
         
      (in millions of dollars) Twelve months ended December 31, 20121
        Individual Group    
        Insurance Wealth
      Management
      Insurance Savings and
      Retirement
      Other Total
        $ $ $ $ $ $
      Revenues            
      Net premiums 1,339 1,451 1,219 767 220 4,996
      Investment income 1,266 83 89 221 (110) 1,549
      Other revenues 155 784 48 57 (110) 934
        2,760 2,318 1,356 1,045 --- 7,479
      Operating expenses            
      Gross benefits on contracts 634 1,274 771 755 126 3,560
      Ceded benefits on contracts (169) (21) (60) (21) 1 (270)
      Net transfer to segregated funds --- 261 --- 244 --- 505
      Increase (decrease) in insurance contract liabilities 1,301 13 109 (21) (8) 1,394
      Increase (decrease) in investment contract liabilities --- --- 20 --- --- 20
      Decrease (increase) in reinsurance assets (95) (8) 10 (2) 5 (90)
      Commissions, general and other expenses 687 634 466 63 12 1,862
      Financing charges 43 7 5 2 (5) 52
        2,401 2,160 1,321 1,020 131 7,033
      Income before income taxes 359 158 35 25 (131) 446
      Income taxes 49 42 7 5 6 109
      Net income before allocation of other activities 310 116 28 20 (137) 337
      Allocation of other activities (130) 2 (5) (4) 137 ---
      Net income 180 118 23 16 --- 337
      Net income attributed to participating policyholders 3 --- --- --- --- 3
      Net income attributed to shareholders 177 118 23 16 --- 334
      1The 2012 figures were adjusted to consider the adoption of the IAS-19 amendment.


      SEGMENTED STATEMENTS OF FINANCIAL POSITION
       
      The following tables present a summray of the financial position by sector of activites:
         
      (in millions of dollars) As at December 31, 2013
        Individual Group  
        Insurance Wealth
      Management
      Insurance Savings and
      Retirement
      Other Total
        $ $ $ $ $ $
      Assets            
      Invested assets and segregated fund assets 17,511 12,645 2,045 9,349 (1,439) 40,111
      Reinsurance assets 764 356 335 131 5 1,591
      Intangible assets 99 383 19 5 24 530
      Goodwill 50 68 54 --- 9 181
      Other --- --- --- --- 1,617 1,617
      Total assets 18,424 13,452 2,453 9,485 216 44,030
      Liabilities            
      Insurance contract liabilities, investment contract liabilities and segregated fund liabilities 13,185 12,336 2,027 9,322 (14) 36,856
      Debentures 2,490 161 37 18 (2,207) 499
      Other 13 --- --- --- 2,994 3,007
      Equity 2,424 698 336 163 47 3,668
      Total liabilities and equity 18,112 13,195 2,400 9,503 820 44,030
         
      (in millions of dollars) As at December 31, 20121
        Individual Group  
        Insurance Wealth
      Management
      Insurance Savings and
      Retirement
      Other Total
        $ $ $ $ $ $
      Assets            
      Invested assets and segregated fund assets 15,123 11,774 1,952 8,588 567 38,004
      Reinsurance assets 947 584 324 126 (13) 1,968
      Intangible assets 93 332 19 3 14 461
      Goodwill 50 40 54 --- 9 153
      Other --- --- -- --- 1,132 1,132
      Total assets 16,213 12,730 2,349 8,717 1,709 41,718
      Liabilities            
      Insurance contract liabilities, investment contract liabilities and segregated fund liabilities 13,183 11,867 1,954 8,488 (28) 35,464
      Debentures 586 118 54 34 (34) 758
      Other 12 --- --- --- 2,270 2,282
      Equity 2,200 531 304 138 41 3,214
      Total liabilities and equity 15,981 12,516 2,312 8,660 2,249 41,718
      1The 2012 figures were adjusted to consider the adoption of the IAS-19 amendment and IFRS-10 standard.

      SOURCE: Industrial Alliance Insurance and Financial Services Inc.

      Investor Relations 
      Grace Pollock
      Tel: 418 780-5945
      Email: [email protected]
      Website: www.inalco.com

      Modal title

      Organization Profile

      Industrial Alliance Insurance and Financial Services Inc.

      Contact PR Newswire

      • 866-245-2317
        from 7:30 AM - 6:30 PM ET
      • Become a Client
      • Request a Demo
      • Editorial Bureaus
      • Partnerships
      • General Enquiries
      • Media

      Products

      • Explore Our Platform
      • Plan Campaigns
      • Create with AI
      • Distribute Press Releases
      • Report Results
      • Amplify Content
      • Investor Relations

      About

      • About PR Newswire
      • About Cision
      • Careers
      • APAC
      • APAC - Simplified Chinese
      • APAC - Traditional Chinese
      • Brazil
      • Canada
      • Czech
      • Denmark
      • Finland
      • France
      • Germany
      • India
      • Indonesia
      • Israel
      • Japan
      • Korea
      • Mexico
      • Middle East
      • Middle East - Arabic
      • Netherlands
      • Norway
      • Poland
      • Portugal
      • Russia
      • Slovakia
      • Spain
      • Sweden
      • United States
      • Vietnam

      My Services

      • All News Releases
      • Platform Login
      • Privacy Policy

      Do not sell or share my personal information:

      • Submit via [email protected] 
      • Call Privacy toll-free: 877-297-8921

      Contact Cision

      Products

      About

      My Services
      • All News Releases
      • Platform
      • Next Gen Communications Cloud
      • Cision Communications Cloud
      • my CNW
      877-269-7890
      from 8 AM - 10 PM ET
      • Terms of Use
      • Information Security Policy
      • Site Map
      • Cookie Settings
      • Accessibility Statement
      Copyright © 2026 CNW Group Ltd. All Rights Reserved. A Cision company.