Canada Life Financial Corp. is reporting improved profit for the fourth quarter ended Dec. 31, 2002.

Net income for the quarter was $131 million, or 81¢ a share, up from $38 million, or 23¢, a year ago.

The firm’s “embedded value”, a key indicator of an insurance company’s worth, stood at $6.3 billion, or $39.28 a share, as at Dec. 31, 2002.

That compares to embedded value of $5.45 billion, or $33.98 a share, for the period ended Dec. 31, 2001.

For the year ended Dec. 31 2002, net income was $490 million or $3.05 per share, up $148 million or 43% over 2001. The insurer the increase was a result of growth in business, favourable mortality and morbidity experience, general expense efficiencies and a lower effective tax rate.

The change in accounting policy adopted in 2002 whereby goodwill is no longer amortized as it was in 2001 contributed $25 million to the year over year increase in net income.

Return on equity for the year was 14%, ahead of 11.1% reported in 2001.

The firm raised its quarterly dividend by 33% and reaffirmed its 2003 outlook.