Great-West Lifeco Inc. today reported a whopping 123% increase in profit for the second quarter ended June 20, due in part to the sale of its U.S. healthcare business.

The Winnipeg-based life insurance company said net income attributable to common shareholders was $1.213 billion for the quarter, compared to $544 million reported a year ago.

On a per share basis, this represents $1.356 a share for the second quarter, an increase of 122% compared to 61¢ a share in the year ago period.

Great-West said the 2008 results include three non-recurring items that totaled $767 million after-tax, or 85.8¢ per common share.

Excluding these items, adjusted net income attributable to common shareholders was $564 million for quarter, up 4% over 2007. On a per share basis, this represents 63¢ per common share for the second quarter compared to 61¢ per common share for 2007.

Compared to the second quarter of 2007, the increase in the foreign exchange value of the Canadian dollar opposite the company’s major operating currencies negatively impacted net income in the quarter by approximately 2.8¢ per common share, or $25 million.

At Great-West’s Canadian operations, net income for the second quarter was $275 million compared to $257 million a year ago, an increase of 7%.

Total sales for the six months ended June 30, 2008 were $4,424 million compared to $5,033 million in 2007, a decrease of 12%. Great-West says the drop reflects strong segregated and mutual fund sales in 2007 that were not repeated because of a weak market environment in 2008.

Total assets under administration at June 30, 2008 were $102.1 billion, compared to $101 billion at December 31, 2007.

In the United States, net income for the second quarter increased to $757 million from $136 million a year ago.

In the six months ended June 30, 2008, three non-recurring items contributed approximately $767 million to earnings. During the second quarter, Great-West realized an after tax gain of $649 million in connection with the sale of its U.S. healthcare business.

Total assets under administration at June 30, 2008 were $216.6 billion compared to $231.4 billion at Dec. 31, 2007. Included in assets under administration were $169.8 billion of mutual fund and institutional account assets managed by Putnam.

In Europe, net income for the second quarter was $187 million compared to $153 million for the second quarter of 2007, an increase of 22%.

Great-West also increased its quarterly dividend by 1.5¢, or 5.1%, to 30.75¢ per common share.