The Canadian Press

Great-West Lifeco Inc. (TSX:GWO) says its profits dropped during the fourth quarter and for all of 2009, despite higher sales in its key Canadian market.

The Winnipeg-based insurance company’s net income for the quarter ended Dec. 31 was $443 million, or 47¢ per share, compared with $525 million, or 59¢ per share in 2008.

Great-West’s full year profits declined to $1.63 billion, or $1.72 per share, in 2009, compared to $2.02 billion, or $2.25 per share in 2008.

In Canada, growth in individual insurance and investment products helped the company grow that business segment’s net income to $246 million for the quarter, compared with $228 million in 2008.

For the 12 months ended Dec. 31, Canadian operations contributed $883 million in net income attributable to common shareholders, compared with $1 billion in 2008.

The company’s U.S. operations contributed $36 million of net income attributable to common shareholders for the fourth quarter of 2009, down from $82 million in the comparable period of 2008.

For the 12 months ended Dec 31, 2009, the U.S. operation’s net income attributable to common shareholders was $228 million compared to $309 million in 2008.

Europe contributed $165 million of net income in the fourth quarter and $529 million for all of 2009, compared with $224 million and $726 million for the comparable periods of 2008.

The company says the quarterly dividend will remain at 30¢ per share.

Great-West recognized pre-tax investment impairment charges of $182 million during the quarter and a number of credit-related items that drove profits down another $82 million or 9¢ per share.

The company, a subsidiary of Power Financial Corp. (TSX:PWF), is involved in life and health insurance, retirement savings, investment management and reinsurance. It operates in Canada, the United States, Europe and Asia.

Shares in the company were trading down eight¢ to $26.42 during Thursday afternoon trading on the Toronto Stock Exchange.