Great-West Lifeco Inc. today reported an 11% rise in second-quarter profit as the insurer paid out less to policyholders.

Net income was $446 million, or 50¢ a share, up from $401 million, or 44¢ a share, in the year-before period.

Stripping out restructuring costs related to previous acquisitions, Great-West earned 51¢ a share.

The insurer also said it would increase its quarterly dividend by 8% to 21¢ a share.

Total premiums and deposits for the quarter were $8.5 billion, down 4% from $8.8 billion, but this was largely offset by lower payouts to policy holders and declining operating expenses.

Assets under administration at end of the quarter were $170.1 billion, up 3.2% from the end of December 2004.

Return on equity for the 12 months ended June 30 was 20.6%, excluding restructuring costs. This was up from 19.4% in the previous year.

Great-West controls Canada Life Financial, Great-West Life Assurance Co., London Life Insurance and U.S.-based Great-West Life & Annuity Insurance Co.