Great-West Lifeco Inc. is reporting improved profits for the fourth quarter ended Dec. 31, 2001.

The insurer said the increase reflects strong earnings in its group and individual insurance, and investment products businesses.

Great-West notes, however, that earnings growth in its reinsurance business was hit by the September 11 attacks in the United States.

Net income for the quarter was $190 million, or 51¢ per share, compared to $174 million, or 46¢ per share in 2000.

Total premiums and deposits for Canada and the U.S. in 2001 were $28.2 million compared to $26.8 million in 2000, an increase of 5%.

The 2001 adjusted results do not include two specific non-recurring charges, including a third-quarter claims provision in Canadian operations of $73 million, and a second-quarter charge of $165 million in the U.S. operations.

At subsidiary, Great-West Life Assurance Co., total premiums and deposits for the 12 months ended Dec. 31, 2001 were up 1% from 2000 levels. Risk-based product premiums were up 12% overall, with reinsurance and specialty general premiums up 20%. Self-funded premium equivalents (ASO contracts) were up 12%, while segregated funds deposits were down 13% for individual products largely due to the investment climate, and down 38% for group products reflecting the uneven incidence of large case sales between years.

Fee income increased 13% in the year ended Dec. 31, 2001 compared to 2000, largely associated with increased segregated funds assets and ASO contract volumes. Total assets under administration at December 31, 2001 were $53.8 billion, up 4% from December 31, 2000.

“We are pleased with our overall performance, particularly in a year that saw the business environment deteriorate for many industries,” said Raymond McFeetors, President & CEO of Great-West Life Assurance Co. “Earnings in our group insurance and individual insurance and investment products businesses were strong, although earning growth in our reinsurance lines of business was impaired by the events of September 11. While market conditions depressed sales of segregated funds, we outperformed the market in individual sales and maintained our leading market share.”