Great-West Lifeco Inc. reported a drop in quarterly profit for the third quarter ended September 30, as the company took a $97 million provision for certain Canadian retirement plans.

After markets closed Thursday, the life insurance company said Q3 net income was $461 million, or 51.6¢ a share, compared with a profit of $477 million or 53.7¢ a share, a year earlier.

Before the provision, income was $558 million or 62.5¢ a share in the latest third quarter, up 17% from a year earlier, mainly on growth in its European and North American business segments.

The company did not offer details on the $97 million provision.

Great-West bought Putnam Investment Trust from U.S. insurance broker Marsh & McLennan Cos. Inc in August for US$3.9 billion in cash.

Putnam contributed 1.7¢ a share to Great-West profit for the quarter, the company said.

Great-West said overall group premiums and deposits rose 1% to $9.2 billion.

The company’s European unit showed a 25% increase in profit to $161 million from $129 million.

Profit rose 11% to $245 million from $221 million at its Canadian operations, and 23% to $150 million from $122 million in its U.S. business,

Great-West said it expects its restructuring plan for Putnam to be substantially complete by the end of 2008, for an overall cost of $123 million.

About $108 million of that amount was recognized with the purchase of Putnam, and the remaining $15 million will be charged to income as it is incurred, the company said.