Great-West Life profit dips, but still eyes deals

* EPS C$0.485 vs C$0.48 expected by analysts

* Putnam assets fall 18 pct from end Q2

* CEO says company well capitalized

* Stock closes up 6 Cdn cents at C$25.75

(Adds CEO comment, Putnam assets, closing share price)

By Lynne Olver

TORONTO (Reuters) - Quarterly profit at Great-West Lifeco (GWO.TO) fell 5 percent as the insurance and wealth management company took charges for impaired assets and the liquidation of a Putnam money market fund, matching analyst expectations.

Great-West, Canada's second-largest life insurer by market value, remains well capitalized despite market turmoil, and it is still interested in making acquisitions, its chief executive told a conference call Thursday afternoon.

"There are abundant opportunities in the marketplace, we are always on the lookout for acquisitions that would add to our business," CEO Allen Loney said.

"We also have to attend to our knitting and make sure that our capital position is strong before we do that, (and) as you can see from the results, we are in a pretty strong capital position."

Great-West said earlier in the day its profit slipped to C$436 million ($357 million), or 48.5 Canadian cents a diluted share, in the three months ended Sept. 30. That was down from C$461 million, or 51.3 Canadian cents, in the year-earlier period.

Analysts had expected earnings of 48 Canadian cents a share before exceptional items, according to Reuters Estimates.

"The reporting was in line with what we thought and was in line with the Street, and that's nice to see in these volatile markets," said Tom MacKinnon, an analyst at Scotia Capital. "All in, that's a pretty encouraging-looking quarter."

The Winnipeg, Manitoba-based company also said that a key regulatory capital ratio, called the minimum continuing capital and surplus ratio, or MCCSR, was 203 percent on Sept. 30, which was at the upper end of the company's target range.

Investors and analysts have been closely watching capital ratios, as big swings in financial markets raised the prospect that some insurance companies might have to bolster their capital to keep up reserves.

Manulife Financial Corp (MFC.TO), which reports results next week, has already said that its MCCSR was at the low end of its 180-200 percent target range on Sept. 30.