Profits at Canada Life's Irish operation rose 55 per cent last year, well ahead of profit growth for the firm as a whole.

The Irish division made profits of 34 million Canadian dollars (€24. 4 million) compared with Can$22 million in 2000.

Fourth-quarter profits after tax more than doubled to Can$7 million at a time when the parent company reported a sharply lower profit after accounting for further exposure to the September 11th attacks last year.

The firm said fourth-quarter net income fell 60 per cent to Can$38 million, or 23 Canadian cents a share, from Can$95 million, or 59 Canadian cents a share, in the same period last year.

Commenting on the performance of the Irish division, Mr Tom Barry, chief executive of Canada Life Ireland, said: "Excellent profit growth was achieved in Ireland, which follows on from the robust levels of new business growth announced at the beginning of the year."

Canada Life has more than 200,000 policy-holders in the Irish market and about 50,000 shareholders. The company employs 500 staff and 300 sales associates in Ireland.

Excluding the provision for the terror attacks, net income for the quarter climbed 14 per cent to Can$108 million, or 67 Canadian cents a share. These results missed even the lowest analyst forecast of 68 Candian cents per share.

The company took a Can$70 million provision, net of tax, in the fourth quarter for exposure to the attacks on the United States, in addition to a third-quarter provision of Can$15 million.

Canada Life said its "best estimate" for remaining exposure is Can$91 million, net of recoveries from reinsurers.