Great-West Lifeco Inc. (GWO) is reporting a stronger profit for the fourth quarter ended Dec. 31, 2003, helped by the acquisition of Canada Life Financial last year.

The Winnipeg-based insurer said net income was $371 million or 80¢ per share, up from $243 million, or 63.4¢per share, a year ago.

Consolidated net earnings for GWO are the net operating earnings of The Great-West Life Assurance Co., Canada Life Financial Corp, from the date of acquisition, as well as London Life Insurance Co. and Great-West Life & Annuity Insurance Company (GWL&A), together with GWO’s corporate results.

Canada/Europe consolidated net earnings for the fourth quarter increased 72% to $200 million from $116 million a year ago. For the 12 months ended Dec. 31, 2003, earnings were up 43% to $629 million, compared to $441 million at Dec. 31, 2002.

GWO says the increases were due to both strong operating earnings from Great-West and London Life, as well as the inclusion of Canada/Europe results for Canada Life from date of acquisition, July 10, 2003.

Total premiums and deposits for the 12 months ended Dec. 31, 2003 increased $3.5 billion from 2002 levels, with the fourth quarter of 2003 up $2.2 million. The increase reflects the inclusion in 2003 of $4 billion of Canada Life premiums and deposits, mitigated by lower reinsurance premiums.

Fee income increased $234 million in 2003 to $654 million including $209 million related to Canada Life in 2003.

Total assets under administration at December 31, 2003 were $112.1 billion, which includes $49.8 billion attributable to Canada Life.

United States consolidated net earnings for the fourth quarter increased 39% to $166 million from $119 million a year ago. For the 12 months ended Dec. 31, 2003, earnings were up 21% to $593 million compared to $490 million at Dec. 31, 2002.

http://www.newswire.ca/en/releases/archive/January2004/29/c3301.html