Profit at Great-West Lifeco Inc. rose 18% in the second quarter due to a large increase in earnings from Europe, the company reported today.

The insurer, which is buying Boston-based fund manager Putnam Investments, said net income was $544 million), or 61¢ a share, for the three months ended June 30.

That was up from $461 million, or 52¢ a share, in the same period last year.

Great-West Lifeco reported earnings growth in all reporting segments, with significant growth in the company’s European segment.

Net income from Canadian operations for the second quarter was $257 million compared to $245 million in 2006, an increase of 5%.

Net income from U.S. operations for the second quarter of 2007 increased 7% to $136 million from $127 million for the second quarter of 2006.

Net income from European operations for the second quarter of 2007 increased 59% to $153 million from $96 million for the second quarter of 2006.

Great-West Lifeco hiked its quarterly dividend by 2¢, or 8%, to 27.5¢ a share.