Great West Lifeco Inc. reported a healthy increase in adjusted earnings from continuing operations for the fourth quarter even though it recorded a big net loss due to writedowns at its U.S. subsidiary Putnam Investments LLC.

The Winnipeg-based insurer said the net loss for the quarter ended Dec. 31, 2008, amounted to $907 million, or $1.01 a share, compared with a profit of $537 million, or 60¢ a share, in the year-earlier period.

The quarterly loss was mainly due to impairment charges that totalled $1.35 billion, or $1.51 per share, related to Putnam.

“The impairment charge primarily reflects the significant deterioration in financial markets since the acquisition by Lifeco in August 2007,” the company said in a release.

Great-West said adjusted earnings for the quarter, which don’t include discontinued operations or one-time items, came in at $525 million, or 59¢ a share. That was up from $494 million, or 55¢ a share, a year earlier.

“Overall, operating results in the company’s Europe and Canada segments and in its United States financial services business were very encouraging in light of extremely difficult economic and financial market conditions that existed in 2008,” the company said.

Quarterly net income attributable to common shareholders from the Canadian operations was $228 million compared to $246 million in 2007.

Total assets under administration at Dec. 31, 2008 were $93.4 billion, compared to $100.8 billion at Dec. 31, 2007.

The company’s Canadian operating subsidiary, Great-West Life, reported a Minimum Continuing Capital and Surplus (MCCSR) ratio of 210% at Dec. 31, 2008, which did not include any benefit from the $1,230 million of common and preferred share capital that was raised by Great-West Lifeco in the fourth quarter.