By Robb M. Stewart


Great-West Lifeco Inc.'s shares advanced Thursday after the Canadian company's quarterly dividend was lifted 6% following better-than-expected earnings in the final quarter of last year.

In morning trading Thursday, the shares were 2.8% higher at C$36.10, extending the advance so far this year to more than 15%. The broader S&P TSX index was up 0.3% at the same time.

The insurance and financial services company late Wednesday reported fourth-quarter net earnings of 1.03 billion Canadian dollars ($765.6 million), up sharply from C$765 million a year earlier and beating the C$821.8 billion expected by analysts polled by FactSet.

Base earnings, which strip out a number of items, were 8.1% higher at C$892 million, which the company said was due to higher new business growth in its capital and risk solutions segment as well as the benefit of its acquisition of Prudential Financial Inc.'s retirement services business.

From a year ago, total assets under management rose to C$1.03 trillion from C$1.01 trillion, and total assets under administration climbed to C$2.5 trillion from C$2.29 trillion.

Great-West also said it would boost its quarterly dividend to C$0.52 a share.

Darko Mihekic, an analyst at RBC Capital Market, said Great-West Lifeco's performance in Europe was stronger than expected, with higher profit on in-force policies and a positive impact from favorable investments in the U.K. and Ireland.

Base earnings in the U.S. and Canada also came in above expectations, with capital and risk solutions operations bolstered by more new business than anticipated, Mr. Mihekic said.

RBC Capital Market has a C$36 per-share target and a sector perform stance on Great-West Lifeco's shares.


Write to Robb M. Stewart at robb.stewart@wsj.com


(END) Dow Jones Newswires

02-09-23 1040ET