Lifeco Split Corporation Inc. Declares Quarterly Dividend on Preferred Shares

TORONTO, Jan. 13, 2012 /CNW/ - The Board of Directors of Lifeco Split Corporation Inc. ("Lifeco") has declared today dividends of $0.3684 per Preferred Share payable on January 31, 2012 to holders of record at the close of business on January 24, 2012. Holders of Preferred Shares are entitled to receive quarterly fixed cumulative dividends equal to $0.3684 per Preferred Share representing a yield of 4% on the redemption price of $36.84.

In line with the Capital Share dividend policy, Lifeco has determined not to pay a Capital Share dividend this quarter, as a result of the downside asset coverage on the Preferred Shares falling below 1.3 times during the quarter. Any excess dividends received on the underlying portfolio securities minus the distributions payable on the Preferred Shares and all administrative and operating expenses will be reinvested in short-term debt securities or underlying portfolio securities.

The Capital Shares and Preferred Shares will be redeemed by the Company on July 31, 2012 (the "Redemption Date") in accordance with the redemption provisions as detailed in the Information circular dated June 15, 2010. Notice of Redemption will be given by the Company at least 45 days prior to the Redemption Date.

Lifeco is a mutual fund corporation created to hold a portfolio of common shares of selected publicly listed Canadian life insurance companies. Lifeco will generate a fixed quarterly dividend for the Preferred shareholders and provide the Capital shareholders with a leveraged investment, the value of which is linked to changes in the market price of the portfolio shares.

Capital Shares and Preferred Shares of Lifeco are listed for trading on The Toronto Stock Exchange under the symbols LSC and LSC.PR.C respectively.

SOURCE Lifeco Split Corporation Inc.

For further information:

Investor Relations
Lifeco Split Corporation Inc.
(416) 945-4166
E-mail: mc_lifeco@scotiacapital.com
Website: www.scotiamanagedcompanies.com

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Lifeco Split Corporation Inc.

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