Great-West Lifeco Inc. has reported net income of $461 million for the three months ended June 30, compared to net income of $446 million reported a year ago. And for the six months ended June 30, net income was $907 million compared to $865 million reported a year ago.

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

Consolidated net earnings for Lifeco are the net earnings of the Great-West Life Assurance Co., Canada Life Financial Corp., London Life Insurance Co. and Great-West Life & Annuity Insurance Co., together with Lifeco’s corporate results.

Consolidated net earnings of the Canadian segment of Lifeco for the second quarter increased 16% to $245 million from $212 million at June 30, 2005. For the six months ended June 30, earnings were up 13% to $449 million from $398 million at June 30, 2005.

Total sales for the six months ended June 30, were $4.3 billion, an increase of 26% over June 30, 2005 levels. Total assets under administration at June 30, were $89.8 billion, up $1.7 billion from Dec. 31, 2005 levels.

Consolidated net earnings of Lifeco’s U.S. segment for the second quarter of 2006 increased 3% to US$112 million from US$109 million at June 30, 2005. For the six months ended June 30, earnings increased 5% to US$229 million from US$219 million at June 30, 2005. Translated to C$, earnings for the six months were $261 million compared to $294 million a year ago.

Total sales for the six months ended June 30, were US $1.3 billion, an increase of 24% over June 30, 2005 levels. Total assets under administration of US$38.5 billion at June 30, were up $0.6 billion from Dec. 31, 2005 levels.

Consolidated net earnings of Lifeco’s European segment include operating currencies in British pounds sterling, euros, U.S.$ and C$. For the second quarter of 2006, on a constant currency basis, net earnings attributable to common shareholders increased 9% compared to June 30, 2005. For the six months ended June 30, on a constant currency basis, earnings increased 16%. Translated to C$, 2006 earnings were $96 million and $207 million for the second quarter and six months respectively, compared to $101 million and $202 million for 2005.

Total sales for the six months ended June 30 were $4.8 billion, an increase of 36% on a constant currency basis over June 30, 2005 levels. Total assets under administration at June 30, were $58.4 billion, up $13.5 billion from Dec. 31, 2005 levels.

Corporate net earnings for Lifeco attributable to common shareholders were a net charge of $7 million for the second quarter of 2006, and a net charge of $10 million for the six months ended June 30, 2006 compared to net charges of $17 million and $29 million in 2005.

Corporate net earnings for Lifeco attributable to common shareholders in 2005 included restructuring costs related to the acquisition of Canada Life Financial Corp. of $9 million and $13 million for the second quarter and six months, respectively.

The translation of foreign currency denominated earnings to C$ in 2006 and the expiry in 2005 of favourable forward foreign exchange contracts has resulted in a decrease in the company’s Canadian dollar equivalent earnings of approximately $35 million for the second quarter and $69 million for the first half of 2006.

Adjusting for the negative impact of currency in 2006, earnings per common share for the second quarter and first half increased 11% and 13%, respectively.

At its meeting Wednesday, the board of directors approved a quarterly dividend of $0.24 per share on the common shares of the company payable Sept. 29 to shareholders of record at the close of business Sept. 1.

In addition, the directors approved quarterly dividends on:
– Series D First Preferred Shares $0.293750 per share;
– Series E First Preferred Shares $0.30 per share;
– Series F First Preferred Shares $0.36875 per share;
– Series G First Preferred Shares of $0.325 per share;
– Series H First Preferred Shares of $0.30313 per share; and
– Series I First Preferred Shares of $0.28125 per share.

All are payable Sept. 29,to shareholders of record at the close of business Sept. 1.