Canada's fourth-largest life and health insurer posted a January to March net income of $51 million dollars or 58 cents a share from $64 million or 76 cents a share earned in the same 2008 period. Net income available to common shareholders was $46 million, from $62 million.

Revenue was slashed by 12 per cent to $1.13 billion from $1.29 billion.

Industrial said the stock market downturn reduced the insurer's income by about $5.8 million while the rise in group insurance claims, particularly for the long-term disability benefit, cost the company $3.4 million. The losses were generated after taxes.

Industrial Alliance declared a dividend of 24.5 cents a common share for the quarter, a nine per cent increase compared to the same period a year ago.