Canada Life's shareholders, who include 50,000 policy-holders who received free shares when the life company demutualised last year, will receive a third-quarter dividend of Can$0.12 per share.

Canada Life has reported a 20 per cent increase in net income for third quarter 2000, up Can$17 million (€12.89 million) over the same quarter last year to reach Can$100 million. This was also a rise of 10 per cent over the second quarter of 2000. For the nine months ended September 30th, net income of Can$262 million was up Can$42 million or 19 per cent over the same period in the prior year.

This increase was due primarily to strong investment income in Canada and Ireland, favourable experience in the US business acquired from Crown Life, and reserve strengthening in the UK in 1999, which did not recur in 2000. The rise was offset partially by increased sales-related expenses in Canada, and favourable reserve changes in Canada in 1999, which did not recur in 2000. Earnings per share (eps) for the third quarter were Can$0.62 compared with eps of Can$0.52 for the same period last year. For the nine months ended September 30th, eps reached Can$1.63, up from $1.37 eps for the same period last year.

Canada Life shares were trading on the Toronto market at Can$37, more than double the Can$17.50 flotation price of October last year.

Canada Life's chief executive officer, Mr David Nield, said the company's "solid financial performance" was "driven by our continued commitment to grow the business profitably - organically, supplemented by acquisitions, joint ventures and other networking arrangements".

He said diversification in terms of geography, product and distribution was key to this strategy.