February 18, 2011 / 3:42 PM / 7 years ago

UPDATE 2-Industrial Alliance profit flat, shares rise

* Q4 EPS C$0.80 vs EST C$0.78

* Sees 2011 EPS C$3.05-C$3.60

* Stock up 0.9 pct at C$38.59 (Adds details, outlook, share reaction)

TORONTO, Feb 18 (Reuters) - Industrial Alliance Insurance and Financial Services (IAG.TO), Canada’s No. 4 insurer, reported a flat fourth-quarter profit on Friday as stronger wealth management earnings offset lower individual insurance returns.

The results gave a small boost to the company’s shares. At midmorning, the stock was up 0.9 percent at C$38.59 on the Toronto Stock Exchange.

The Quebec City-based company earned a net C$67.4 million ($68.8 million), or 80 Canadian cents a share, in the three months ended Dec. 31. That compared with a profit of C$67.4 million, or 83 Canadian cents a share, a year earlier.

Analysts polled by Thomson Reuters I/B/E/S had expected, on average, a profit of 78 Canadian cents a share.

Profit from individual insurance fell 79.7 percent to C$21.1 million, while the wealth management business earned C$25.8 million, compared with a small loss a year earlier.

Return on equity was 12.7 percent. The company maintains a target range of 12 to 14 percent for that key measure of profitability.

The company said it expects full-year 2011 per-share profit to be in a range of C$3.05 to C$3.60.

$1=$0.98 Canadian Reporting by Cameron French; editing by Peter Galloway

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