Canada Life Financial Corp. is reporting improved earnings for the second quarter ended June 30.

The life insurer says shareholders’ net income rose to $103 million for the second quarter of 2001, up $12 million over the same quarter last year, an increase of 13%.

Earnings per share for the second quarter were 64¢, compared with 57¢ reported in the same period last year. Shareholders’ net income of $190 million year to date was 17% ahead of the same period in the prior year.

Return on shareholders’ equity for the 12 months ended June 30 was 13.5%, up from the 13.2% reported for the 12 months ended March 31, 2001 and ahead of the 12.3% reported in the second quarter of 2000.

According to Canada Life, the second quarter reflect the company’s longstanding and determined emphasis on delivering strong financial performance

The growth of business in force and synergies realized from past acquisitions contributed favourably to the increase in shareholders’ net income. Also contributing favourably to net income were the increased net investment spreads achieved as a result of the improvements, made in 2000, to asset and liability matching.

Canada Life says these increases are partially offset by the ongoing negative effects of global stock market declines and the impact of Canadian provincial tax rate changes on the cumulative tax balances.

Total premiums and deposits grew to $2,522 million for the second quarter of 2001. Excluding conversions and the premiums from discontinued operations included in 2000, growth in premiums and deposits was $371 million, or 17% over the prior year.

Assets under administration were $62,318 million as at June 30, an increase of $5,533 million or 10% over the same date last year impacted significantly by the acquisition of $5,240 million in group savings business in Canada in late 2000. Overall growth in assets under administration was partially offset by the translation impact of the strengthening of the Canadian dollar against the U.K. and Irish pounds.

At its meeting today, the board of directors approved a quarterly dividend of 13¢ per common share.