* Q2 net EPS C$0.68 vs average estimate C$0.67
* Net profit rises 80 pct
* Stronger economy, stock gains boost profit
* Shares down 1 Canadian cent at C$34.63
TORONTO, July 27 (Reuters) - Industrial Alliance Insurance and Financial Services IAG.TO said on Tuesday its second-quarter profit rose 80 percent, due to an improving economy and rising stock markets.
The Quebec City-based company, Canada’s fourth-largest insurer, earned C$57.7 million ($55.5 million), or 68 Canadian cents per share, in the three months ended June 30.
That compared with a profit of C$32.1 million, or 40 Canadian cents, in the year-before period.
Analysts had expected at profit of 67 Canadian cents a share, according to Thomson Reuters I/B/E/S.
Return on equity was 11.5 percent. The company has a 12 to 14 percent target range for that key measure of profitability.
Stock markets lost ground during the quarter, but were up year-over-year from the same quarter in 2009, when shares were recovering from the 2008 crash.
The company’s shares were down 1 Canadian cent at C$34.63 on the Toronto Stock Exchange.
$1=$1.04 Canadian Reporting by Cameron French