Great-West Lifeco Inc. reported a net income of $446 million for the first quarter of fiscal 2006, ended March 31, compared to net income of $419 million reported a year ago.

On a per share basis, this result represents $0.501 per common share for the three months, an increase of 6% (14% on a constant currency basis) compared to $0.471 per common share for 2005. Net income in 2005 included $4 million, or $0.004 per common share, for restructuring charges related to the acquisition of Canada Life Financial Corporation.

Lifeco experienced solid operating results in all major business segments and significant growth in net income attributable to common shareholders.

Other highlights include:
– Return on common shareholders’ equity was 20.4% for the 12 months ended March 31.
– Assets under administration at March 31 totalled $182.3 billion, up $5 billion from Dec. 31, 2005 levels.
– Quarterly dividends declared were $0.22375 per common share payable June 30. Dividends paid on common shares for the three months ended March 31 were 15% higher than a year ago.

Consolidated net earnings for Lifeco are the net operating earnings of The Great-West Life Assurance Company (Great-West Life), Canada Life Financial Corporation (CLFC), London Life Insurance Company (London Life) and Great-West Life & Annuity Insurance Company (GWL&A), together with Lifeco’s corporate results.

Canada

Consolidated net earnings of the Canadian segment of Lifeco attributable to common shareholders for the first quarter of 2006 increased 10% to $204 million from $186 million at March 31, 2005.

Total sales for the three months ended March 31 were $2.4 billion, an increase of 34% over the first quarter of 2005. Fee income for the period increased $27 million to $216 million.

Total assets under administration at March 31 were $90.3 billion, up $2.2 billion from Dec. 31, 2005 levels, essentially due to increases in segregated funds.

United States

Consolidated net earnings of the United States segment of Lifeco attributable to common shareholders for the first quarter of 2006 decreased 7% (an increase of 6% on a constant currency basis) to $134 million from $144 million at March 31, 2005.

Total sales for the three months ended March 31 were $869 million an increase of 9% (an increase of 17% on a constant currency basis) over the first quarter of 2005. Fee income for the period increased by $3 million to $297 million.

Total assets under administration of $44.9 billion at March 31 were up $0.6 billion from Dec. 31, 2005 levels, essentially due to increases in segregated funds.

Europe

Consolidated net earnings of the European segment of Lifeco attributable to common shareholders for the first quarter of 2006 increased 10% (an increase of 24% on a constant currency basis) to $111 million from $101 million at March 31, 2005.

Total sales for the three months ended March 31 were $1.9 billion, a decrease of 7% (an increase of 3% on a constant currency basis) over the first quarter of 2005. Fee income for the period increased by $8 million to $139 million.

Total assets under administration at March 31 were $47.1 billion, up $2.2 billion from December 31, 2005 levels, with increases in the general fund of $0.4 billion and in segregated funds of $1.8 billion.