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Great-West Lifeco Inc., Canada's No. 2 life insurer, said on Wednesday its profit rose nearly 5 per cent in the second quarter amid strong sales in key markets.

The Winnipeg-based insurer said its profit rose to $433-million, or 45.7 cents a share, from $413-million, or 43.7 cents a share in the year-ago period.

Analysts, on average, had expected the company to earn 45 cents a share, according to Thomson Reuters I/B/E/S.

Consolidated assets under administration at June 30 were $460.2-billion (U.S.), up $1.6-billion from Dec. 31, 2009.

"The company experienced solid earnings growth in the local currencies of all regions in which it operates," Great-West said in a statement.

It said, however, that it was hurt by the stronger Canadian currency.

"The continued strengthening of the Canadian dollar against the U.S. dollar, the British pound and the euro had a negative currency impact on Lifeco's net earnings of $33-million [Canadian]or $0.035 per common share in the second quarter of 2010 compared to the same period in 2009," it said.

The result follows a 35 per cent rise in profit in the first quarter to $441-million, when sales of Canadian insurance and U.S. retirement products surged, and stock market gains boosted investments.

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