Great-West Lifeco Inc. today reported improved profit for the fourth quarter, helped by solid operating results in its Canada and Europe segments.

The insurer said net income for quarter the ended Dec. 31, 2006 was $491 million compared to net income of $456 million reported a year ago.

On a per share basis, this represents 55¢ per common share, an increase of 7% compared to 51.2¢ per common share for 2005.

For the 12 months ended Dec. 31, 2006, net income attributable to common shareholders was $1,875 million compared to $1,742 million reported a year ago.

On a per share basis, this result represents $2.104 per common share for the 12 months ended Dec. 31, 2006, an increase of 8% (15% on a constant currency basis) compared to $1.955 per common share for 2005. The 2005 results included restructuring charges and provisions for expected losses arising from hurricane damage.

Return on common shareholders’ equity was 20.1% for the 12 months ended Dec. 31, 2006 compared to 20.7% a year ago.

Assets under administration at Dec. 31, 2006 totalled $210.6 billion, up $33.3 billion from Dec. 31, 2005 levels.

Consolidated net earnings of the Canadian segment of Lifeco attributable to common shareholders for the fourth quarter of 2006 increased 30% to $223 million from $171 million a year ago. For the 12 months ended Dec. 31, 2006, earnings were up 16% to $893 million from $773 million in 2005.

Total sales for the 12 months ended Dec. 31, 2006 were $8.3 billion, an increase of 27% over 2005 levels.

Total assets under administration at Dec. 31, 2006 were $94.6 billion, up $6.5 billion from Dec. 31, 2005.

Consolidated net earnings of the United States segment of Lifeco attributable to common shareholders for the fourth quarter of 2006 in U.S. dollars decreased 8% to US$113 million from US$123 million a year ago. For the 12 months ended Dec. 31, 2006, earnings decreased 2% to US$452 million from US$459 million at Dec. 31, 2005. In Canadian dollars, earnings for the 12 months ended Dec. 31, 2006 were $511 million compared to $606 million in 2005.

Total sales for the 12 months ended Dec. 31, 2006 were US$2.3 billion, an increase of 15% over 2005 levels.

Total assets under administration of US$41.2 billion at Dec. 31, 2006 were up $3.3 billion from Dec. 31, 2005.

Net earnings of the European segment of Lifeco for the fourth quarter of 2006, on a constant currency basis increased 31% compared to 2005. For the 12 months ended Dec. 31, 2006, on a constant currency basis, earnings increased 34%. In Canadian dollars, 2006 earnings were $150 million and $486 million for the fourth quarter and 12 months respectively, compared to $122 million and $399 million for 2005.

Total sales for the 12 months ended Dec. 31, 2006 were Canadian $10.1 billion, an increase of 24% on a constant currency basis over 2005 levels.

Total assets under administration at Dec. 31, 2006 were Canadian $67.8 billion, up $22.9 billion from Dec. 31, 2005.

Corporate net earnings for Lifeco attributable to common shareholders were a net charge of $10 million for the fourth quarter of 2006, and a net charge of $15 million for the 12 months ended Dec. 31, 2006 compared to net income of $2 million for the fourth quarter of 2005 and a net charge of $36 million for the 12 months ended Dec. 31, 2005.

Corporate net earnings for Lifeco attributable to common shareholders in 2005 included restructuring costs related to the acquisition of Canada Life Financial Corporation of $17 million after-tax.

At its meeting today, the board of directors approved a quarterly dividend of 25.5¢ per common share, and increase of 1.5¢ a share.