Canada Life Financial is reporting improved profit for the second quarter ended June 30. The insurer said quarterly profit jumped 10% despite loan loss provisions of $520 million.

Second-quarter net income was $125 million, or 78¢ a share. That is up from $114 million, or 71¢ a share, in the year-before period.

Return on equity on a 12-month basis fell to 11.7% from 14%. Total premiums and deposits stood at $3 billion, up from $2.7 billion last year.

The company said impaired investments were $103 million at the end of the quarter, down $37 million from previous year after recoveries, redemptions and sales of impaired bonds and mortgages.

Premiums, premium equivalents and new deposits of $3,039 million for the quarter were up $342 million or 13% over the comparable period in 2001. General fund premium revenue of $1,413 million for the quarter was up $99 million or 8% over the prior year, primarily as a result of continuing strong group annuity sales in the United Kingdom and higher payout annuity sales in Canada.

Despite global stock market volatility, segregated funds deposits increased $124 million or 14% in the second quarter of 2002 compared with the same period last year, with growth across all operating divisions..

Assets under administration were $65,449 million as at June 30, an increase of $3,009 million or 5% over the same date last year.