August 6, 2009 / 4:48 PM / 9 years ago

UPDATE 1-Great West Q2 profit falls, shares slide

* Q2 EPS C$0.437 vs C$0.63, below expectations

* Return on equity falls to 14.2 pct from 21.4 pct

* Shares down 6 pct

TORONTO, Aug 6 (Reuters) - Great West Lifeco (GWO.TO) said on Thursday its quarterly profit fell as provisions for future credit losses and lower fee revenues offset what it said were generally improved conditions.

Canada’s No. 2 life insurer said net income fell to C$413 million, or 43.7 Canadian cents a share, in the second quarter, from C$564 million, or 63 Canadian cents a share, a year earlier.

Analysts had expected earnings of 49 Canadian cents a share, according to Reuters Estimates.

Winnipeg-based Great West said it increased provisions for future credit losses in actuarial liabilities by C$506 million, which cut net income by C$250 million, or 27 Canadian cents a share.

Shares in Great West were 6 percent lower at C$25.29 on the Toronto Stock Exchange early Thursday afternoon, while the broader financials index was 3.9 percent lower.

$1=$1.07 Canadian Reporting by Andrea Hopkins; editing by Rob Wilson

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