Source: The Canadian Press

Insurance provider and investment manager Great-West Lifeco Inc. (TSX:GWO) has reported net earnings of $508 million in the fourth quarter, compared with $443 million in the same quarter in 2009.

Earnings per common share were 54 cents, up from 47 cents a year ago, the company said in announcing its results Thursday.

The company’s total premiums and deposits were $15.5 billion, up from $14.4 billion.

Great-West said sales of life insurance in the United States more than doubled in the quarter, adding that it also sold 20% more policies in Canada compared with the same quarter in 2009.

Mutual fund sales were up 16%.

The company’s quarterly results include positive adjustments due to previous overstatements on American taxes, as well as the after-tax impact relating to the cost of acquiring Canada Life Financial Corp. in 2003.

They also include negative adjustments due to actuarial liabilities in the company’s European division and money lost due to the high loonie against other currencies.

However, operating earnings excluded the impact of a litigation provision which began in the third quarter, amounting to $225 million after tax.

In October, an Ontario court ruled the company should pay out $456 million to 1.8 million policyholders who launched a class action lawsuit. A judge ruled that Great-West broke the law by transferring money from two subsidiaries to finance the 1997 takeover of London Insurance Group, parent company of London Life.

On Thursday, Great-West also declared it was not changing its dividend of 31 cents per share payable March 31.

Great-West stock was down two cents at $27.43 Thursday on the Toronto Stock Exchange.