TSX:GWO
Readers are referred to the cautionary notes regarding Forward-Looking Information and Non-IFRS Financial Measures at the end of this release. All figures are expressed in Canadian dollars, except as noted.
WINNIPEG, Feb. 13, 2014 /CNW/ - Great-West Lifeco Inc. (Lifeco) has reported net earnings attributable to common shareholders of $717 million or $0.717 per common share for the three months ended December 31, 2013 compared to $351 million or $0.370 per common share a year ago. For the twelve months ended December 31, 2013, Lifeco's net earnings attributable to common shareholders were $2,278 million or $2.340 per common share compared to $1,806 million or $1.902 per common share a year ago. Net earnings include a litigation recovery of $226 million after-tax or $0.226 per common share in the fourth quarter of 2013. Comparatively, net earnings in the fourth quarter of 2012 include a litigation provision of $140 million after-tax or $0.147 per common share related to the same legal matter.
Operating earnings, a non-IFRS measure, which exclude the impacts of litigation matters described above, were $491 million or $0.491 per common share in the fourth quarter of 2013. Excluding the impact of acquisition and restructuring costs associated with the Irish Life Group Limited (Irish Life) acquisition and mark-to-market losses on a macro capital hedge, operating earnings were $540 million or $0.540 per common share in the fourth quarter of 2013, up 10% from operating earnings of $491 million or $0.517 per common share for the same period in 2012.
For the twelve months ended December 31, 2013, Lifeco's operating earnings attributable to common shareholders were $2,052 million or $2.108 per common share, compared to $1,946 million or $2.049 per common share for the same period in 2012.
Consolidated assets under administration at December 31, 2013 grew to over $758 billion, up $212 billion from December 31, 2012, including $105 billion of Irish Life assets under administration.
Highlights - In Quarter
- Lifeco premiums and deposits during the quarter were $22.6 billion, up 34% from a year ago, including $4.0 billion from Irish Life, reflecting continued strong persistency and growth.
- Total Company sales in the fourth quarter of 2013 were up 61% from the same period in 2012:
- Canada sales were $2.9 billion consistent with the fourth quarter of 2012.
- Europe Insurance & Annuities sales were $4.8 billion, up 270% compared to the fourth quarter of 2012, including sales of $3.8 billion from Irish Life.
- Putnam sales were US$8.3 billion, up 22% compared to the fourth quarter of 2012, driven by mutual fund sales of US$5.7 billion which were at their highest level since the third quarter of 2003.
- Great-West Financial sales were US$5.3 billion, up 97% compared to the fourth quarter of 2012.
- Irish Life contributed $44 million of net earnings to Lifeco in the fourth quarter of 2013. Integration activities are progressing well and on track to achieve targeted cost synergies.
- The Company maintained a strong ROE of 16.6% based on net earnings and 15.0% based on operating earnings. ROE based on adjusted operating earnings of $540 million, which exclude the impact of restructuring and acquisition costs associated with the Irish Life acquisition and a macro capital hedge, was 15.9%.
- The Company's capital position remained very strong. The Great-West Life Assurance Company reported a Minimum Continuing Capital and Surplus Requirements (MCCSR) ratio of 223% at December 31, 2013.
- The Company declared a quarterly common dividend of $0.3075 per common share payable March 28, 2014.
OPERATING RESULTS
Consolidated net earnings of Lifeco include the net earnings of The Great-West Life Assurance Company (Great-West Life) and its operating subsidiaries London Life Insurance Company (London Life) and The Canada Life Assurance Company (Canada Life); Great-West Life & Annuity Insurance Company (Great-West Financial) and Putnam Investments, LLC (Putnam), together with Lifeco's Corporate operating results. Irish Life results are included for the period subsequent to the acquisition date of July 18, 2013.
CANADA
The Canada segment of Lifeco includes the operating results of the Canadian businesses operated by Great-West Life, London Life and Canada Life. The three primary business units included in this segment are Individual Insurance, Wealth Management and Group Insurance. The Company provides accumulation, annuity, life, disability and critical illness insurance products to individual and group clients.
Net earnings attributable to common shareholders for the fourth quarter of 2013 were $270 million compared to $263 million in the fourth quarter of 2012. For the twelve months ended December 31, 2013 net earnings attributable to common shareholders were up 11% to $1,148 million compared to $1,038 million for the same period in 2012.
Total sales in the fourth quarter of 2013 were $2.9 billion, consistent with the fourth quarter of 2012. This reflects an 8% increase in Individual Insurance sales and an 8% increase in Wealth Management Group Retirement Services sales partially offset by a decrease in Group Insurance sales. Total sales for the twelve months ended December 31, 2013 were $10.8 billion compared to $9.9 billion in 2012.
Total Canada segment assets under administration at December 31, 2013 were $149 billion, compared to $138 billion at December 31, 2012.
UNITED STATES
The United States operating results for Lifeco include the results of Great-West Financial, Putnam and the insurance businesses in the United States branches of Great-West Life and Canada Life, together with an allocation of a portion of Lifeco's corporate results.
Great-West Financial provides an array of financial security products, including employer-sponsored defined contribution plans, administrative and record-keeping services, fund management and investment and advisory services. It also provides individual retirement accounts, life insurance and annuity products and executive benefits products. Putnam provides investment management, certain administrative functions, distributions and related services through a broad range of investment products.
Net earnings attributable to common shareholders for the fourth quarter of 2013 were $56 million compared to $76 million in the fourth quarter of 2012. Great-West Financial reported net earnings of $81 million in the fourth quarter compared to $95 million for the same period last year. Putnam reported a net loss of $25 million in the fourth quarter compared to a net loss of $19 million a year ago. For the twelve months ended December 31, 2013 net earnings attributable to common shareholders were $276 million compared to $321 million in 2012.
Great-West Financial sales in the fourth quarter of 2013 were US$5.3 billion, up from US$2.7 billion in the fourth quarter of 2012 primarily due to a large public/non-profit plan sale and two large 401(k) client sales. Sales for the twelve months ended December 31, 2013 were US$12.5 billion compared to US$9.0 billion in 2012 primarily due to the large plan sale and an increase in new participants for public/non-profit and two large client sales and higher average assets per plan sold for 401(k).
Putnam assets under management as at December 31, 2013 were US$150 billion compared to US$128 billion a year ago, an increase of 17%. Net asset inflows for the fourth quarter of 2013 were US$0.3 billion compared to net asset outflows of US$0.2 billion for the same period in 2012, driven by mutual fund net inflows of US$1.8 billion, which were at their highest level since the first quarter of 2001.
Total United States segment assets under administration at December 31, 2013 were $421 billion compared to $333 billion at December 31, 2012.
EUROPE
The Europe segment comprises two distinct business units: Insurance & Annuities and Reinsurance, together with an allocation of Lifeco's corporate results. Insurance & Annuities provides protection and wealth management products including payout annuities, through subsidiaries of Canada Life in the U.K., Isle of Man and Germany, and through Irish Life in Ireland. Reinsurance operates primarily in the U.S., Barbados and Ireland, and is conducted through Canada Life, London Life and their subsidiaries. Irish Life results are included for the period subsequent to the acquisition date of July 18, 2013.
Net earnings attributable to common shareholders for the fourth quarter of 2013 were $202 million, which include the impact of $23 million of restructuring and acquisition costs related to the Irish Life acquisition. Excluding these costs net earnings were $225 million for the quarter, compared to $151 million in the fourth quarter of 2012. Irish Life contributed $44 million of net earnings in the fourth quarter of 2013. For the twelve months ended December 31, 2013 net earnings attributable to common shareholders were $701 million compared to $615 million for the same period in 2012.
Insurance & Annuities sales for the fourth quarter of 2013 were $4.8 billion, including $3.8 billion related to Irish Life, up 270% as compared to $1.3 billion a year ago. Total sales for the twelve months ended December 31, 2013, including Irish Life, were $9.9 billion compared to $3.7 billion in 2012.
Total Europe segment assets under administration at December 31, 2013 were $188 billion, up from $75 billion at December 31, 2012. Assets under administration include $105 billion of Irish Life assets.
CORPORATE
The Lifeco Corporate segment includes operating results for activities of Lifeco that are not associated with the major business units of the Company.
Lifeco Corporate segment net earnings attributable to common shareholders were $189 million in the fourth quarter of 2013 compared to a net loss of $139 million in the fourth quarter of 2012. Included in Lifeco corporate segment net earnings was a litigation recovery of $226 million in 2013 as compared to a litigation provision of $140 million in 2012.
For the twelve months ended December 31, 2013 Lifeco corporate segment net earnings attributable to common shareholders were $153 million compared to a net loss of $168 million in 2012, including the litigation items noted above.
Succession planning at Great-West Financial
After a distinguished 20-plus year career with our group of companies, Mitchell T.G. Graye, Chief Executive Officer of Great-West Financial, the Company's U.S. insurance subsidiary, has indicated his intention to retire following Great-West Lifeco's annual meeting on May 8, 2014. Meanwhile, succession planning is underway, with Mr. Graye's successor to be announced prior to the May annual meeting.
QUARTERLY DIVIDENDS
At its meeting today, the Board of Directors approved a quarterly dividend of $0.3075 per share on the common shares of the Company payable March 31, 2014 to shareholders of record at the close of business March 3, 2014.
For purposes of the Income Tax Act (Canada), and any similar provincial legislation, the dividends referred to above are eligible dividends.
In addition, the Directors approved quarterly dividends on:
- Series F First Preferred Shares of $0.36875 per share;
- Series G First Preferred Shares of $0.3250 per share;
- Series H First Preferred Shares of $0.30313 per share;
- Series I First Preferred Shares of $0.28125 per share;
- Series L First Preferred Shares of $0.353125 per share;
- Series M First Preferred Shares of $0.36250 per share;
- Series N First Preferred Shares of $0.228125 per share;
- Series P First Preferred Shares of $0.3375 per share;
- Series Q First Preferred Shares of $0.321875 per share; and
- Series R First Preferred Shares of $0.3000 per share
all payable March 31, 2014 to shareholders of record at the close of business March 3, 2014.
GREAT-WEST LIFECO
Great-West Lifeco Inc. (TSX:GWO) is an international financial services holding company with interests in life insurance, health insurance, retirement and investment services, asset management and reinsurance businesses. Great-West Lifeco has operations in Canada, the United States, Europe and Asia through Great-West Life, London Life, Canada Life, Irish Life, Great-West Financial and Putnam Investments. Great-West Lifeco and its companies have $758 billion in assets under administration and are members of the Power Financial Corporation group of companies.
Cautionary note regarding Forward-Looking Information
This release contains some forward-looking statements about the Company, including its business operations, strategy and expected financial performance and condition. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as "expects", "anticipates", "intends", "plans", "believes", "estimates" and similar expressions or negative versions thereof. In addition, any statement that may be made concerning future financial performance (including revenues, earnings or growth rates), ongoing business strategies or prospects, and possible future actions by the Company, including statements made with respect to the expected benefits of acquisitions and divestitures, are also forward-looking statements. Forward-looking statements are based on expectations and projections about future events that were current at the time of the statements and are inherently subject to, among other things, risks, uncertainties and assumptions about the Company, economic factors and the financial services industry generally, including the insurance and mutual fund industries. They are not guarantees of future performance, and actual events and results could differ materially from those expressed or implied by forward-looking statements. Material factors and assumptions that were applied in formulating the forward-looking information contained herein include the assumption that the business and economic conditions affecting the Company's operations will continue substantially in their current state, including, without limitation, with respect to market prices for products provided, sales levels, premium income, fee income, expense levels, mortality experience, morbidity experience, policy lapse rates, taxes, inflation, information systems, general economic, political and market factors in North America and internationally, interest and foreign exchange rates, global equity and capital markets, business competition, and the Company's ability to complete strategic transactions and integrate acquisitions, and that there will be no unplanned material changes to the Company's facilities, customer and employee relations or credit arrangements. Many of these assumptions are based on factors and events that are not within the control of the Company and there is no assurance that they will prove to be correct. Other important factors that could cause actual results to differ materially from those contained in forward-looking statements include technological change, changes in local and international laws and regulations, changes in accounting policies and the effect of applying future accounting policy changes, unexpected judicial or regulatory proceedings and catastrophic events. The reader is cautioned that the foregoing list of assumptions and factors is not exhaustive, and there may be other factors listed in other filings with securities regulators, including factors set out in the Company's 2013 Annual Management Discussion & Analysis (MD&A) under "Risk Management and Control Practices" and "Summary of Critical Accounting Estimates", which, along with other filings, is available for review at www.sedar.com. The reader is also cautioned to consider these and other factors carefully and not to place undue reliance on forward-looking statements. Other than as specifically required by applicable law, the Company does not intend to update any forward-looking statements whether as a result of new information, future events or otherwise.
Cautionary note regarding Non-IFRS Financial Measures
This release contains some non-IFRS financial measures. Terms by which non-IFRS financial measures are identified include, but are not limited to, "operating earnings", "constant currency basis", "premiums and deposits", "sales", and other similar expressions. Non-IFRS financial measures are used to provide management and investors with additional measures of performance. However, non-IFRS financial measures do not have standard meanings prescribed by IFRS and are not directly comparable to similar measures used by other companies. Please refer to the appropriate reconciliation's of these non-IFRS financial measures to measures prescribed by IFRS.
Further information
Selected financial information is attached.
Great-West Lifeco's fourth quarter conference call and audio webcast will be held February 13, 2014 at 3:30 p.m. (ET). The call and webcast can be accessed through www.greatwestlifeco.com or by phone at:
- Participants in the Toronto area: 416-340-8061
- Participants from North America: 1-866-225-0198
- Participants from Overseas: Dial international access code first, then 800-6578-9898
A replay of the call will be available from February 13, 2014, and can be accessed by calling 1-800-408-3053 or 905-694-9451 in Toronto (passcode: 8898149#). The archived webcast will be available on www.greatwestlifeco.com from February 13, 2014 until February 12, 2015.
Additional information relating to Lifeco, including the 2013 audited consolidated financial statements, MD&A, Annual Information Form (AIF), and CEO/CFO certification will be filed on SEDAR at www.sedar.com.
| FINANCIAL HIGHLIGHTS (unaudited) (in Canadian $ millions except per share amounts) |
||||||||||||||||
| As at or for the three months ended | For the twelve months ended | |||||||||||||||
| December 31 | September 30 | December 31 | December 31 | December 31 | ||||||||||||
| 2013 | 2013 | 2012(3) | 2013 | 2012(3) | ||||||||||||
| Premiums and deposits: | ||||||||||||||||
| Life insurance, guaranteed annuities and insured health products(2) |
$ | 5,850 | $ | 4,859 | $ | 4,972 | $ | 20,236 | $ | 19,257 | ||||||
| Self-funded premium equivalents (Administrative services only contracts) |
649 | 620 | 677 | 2,567 | 2,666 | |||||||||||
| Segregated funds deposits: | ||||||||||||||||
| Individual products | 2,757 | 2,352 | 2,072 | 8,308 | 6,557 | |||||||||||
| Group products | 1,809 | 1,838 | 2,216 | 7,553 | 7,262 | |||||||||||
| Proprietary mutual funds and institutional deposits |
11,491 | 10,309 | 6,880 | 36,119 | 24,496 | |||||||||||
| Total premiums and deposits | 22,556 | 19,978 | 16,817 | 74,783 | 60,238 | |||||||||||
| Fee and other income(2) | 1,001 | 955 | 787 | 3,585 | 3,030 | |||||||||||
| Paid or credited to policyholders(1)(2) | 5,647 | 5,025 | 5,262 | 17,811 | 22,875 | |||||||||||
| Operating earnings - common shareholders(3) | 491 | 523 | 491 | 2,052 | 1,946 | |||||||||||
| Net earnings - common shareholders(3)(4) | 717 | 523 | 351 | 2,278 | 1,806 | |||||||||||
| Per common share | ||||||||||||||||
| Operating earnings | $ | 0.491 | $ | 0.527 | $ | 0.517 | $ | 2.108 | $ | 2.049 | ||||||
| Basic earnings(3) | 0.717 | 0.527 | 0.370 | 2.340 | 1.902 | |||||||||||
| Dividends paid | 0.3075 | 0.3075 | 0.3075 | 1.230 | 1.230 | |||||||||||
| Book value(3) | 15.33 | 14.39 | 12.64 | |||||||||||||
| Return on common shareholders' equity: | ||||||||||||||||
| Operating earnings(3) | 15.0% | 16.0% | 16.5% | |||||||||||||
| Net earnings(3) | 16.6% | 14.9% | 15.3% | |||||||||||||
| Total assets(3) | $ | 325,905 | $ | 312,473 | $ | 253,850 | ||||||||||
| Proprietary mutual funds and institutional net assets(2) |
185,243 | 167,619 | 134,598 | |||||||||||||
| Total assets under management(3) | 511,148 | 480,092 | 388,448 | |||||||||||||
| Other assets under administration | 247,139 | 225,187 | 157,455 | |||||||||||||
| Total assets under administration(3) | $ | 758,287 | $ | 705,279 | $ | 545,903 | ||||||||||
| Total equity(3) | $ | 19,999 | $ | 19,435 | $ | 17,011 | ||||||||||
| The Company uses operating earnings, a non-International Financial Reporting Standards financial measure, which excludes the impact of certain litigation provisions described in note 33 to the Company's December 31, 2013 consolidated financial statements. |
|
| (1) | Paid or credited to policyholders includes the impact of changes in fair values of assets supporting insurance and investment contract liabilities. |
| (2) | During the year, the Company reclassified certain comparative figures for presentation adjustments. |
| (3) | Comparative figures, where impacted, have been restated for the retrospective impact of new and revised International Financial Reporting Standards effective during 2013 most notably IAS 19R, Employee Benefits, and IFRS 10, Consolidated Financial Statements. |
| (4) | Impacts on Lifeco net earnings - common shareholders |
| Three months ended Dec. 31, 2013 |
Per common share |
Twelve months ended Dec. 31, 2013 |
Per common share |
|||||||||||||||
| Net earnings | $ | 717 | $ | 0.717 | $ | 2,278 | $ | 2.340 | ||||||||||
| Less: Litigation recovery | (226) | (226) | ||||||||||||||||
| Operating earnings | 491 | 0.491 | 2,052 | 2.108 | ||||||||||||||
| Add: Irish Life restructuring and acquisition costs | 23 | 97 | ||||||||||||||||
| Add: Macro capital hedge impact | 26 | 26 | ||||||||||||||||
| Sub Total | 540 | 0.540 | 2,175 | 2.234 | ||||||||||||||
| Less: Irish Life earnings | (44) | (85) | ||||||||||||||||
| Operating earnings excluding Irish Life and macro capital hedge impacts |
$ | 496 | $ | 0.496 | $ | 2,090 | $ | 2.146 | ||||||||||
| CONSOLIDATED STATEMENTS OF EARNINGS (unaudited) (in Canadian $ millions except per share amounts) |
|||||||||||||||
| For the three months ended December 31 |
For the years ended December 31 |
||||||||||||||
| 2013 | 2012 | 2013 | 2012 | ||||||||||||
| Income | |||||||||||||||
| Premium income | |||||||||||||||
| Gross premiums written | $ | 6,739 | $ | 5,908 | $ | 23,441 | $ | 22,276 | |||||||
| Ceded premiums | (889) | (936) | (3,205) | (3,019) | |||||||||||
| Total net premiums | 5,850 | 4,972 | 20,236 | 19,257 | |||||||||||
| Net investment income | |||||||||||||||
| Regular net investment income | 1,430 | 1,339 | 5,604 | 5,642 | |||||||||||
| Changes in fair value through profit or loss | (225) | 207 | (2,979) | 2,668 | |||||||||||
| Total net investment income | 1,205 | 1,546 | 2,625 | 8,310 | |||||||||||
| Fee and other income | 1,001 | 787 | 3,585 | 3,030 | |||||||||||
| 8,056 | 7,305 | 26,446 | 30,597 | ||||||||||||
| Benefits and expenses | |||||||||||||||
| Policyholder benefits | |||||||||||||||
| Insurance and investment contracts | |||||||||||||||
| Gross | 4,835 | 4,548 | 18,464 | 17,854 | |||||||||||
| Ceded | (597) | (399) | (1,744) | (1,457) | |||||||||||
| Total net policyholder benefits | 4,238 | 4,149 | 16,720 | 16,397 | |||||||||||
| Policyholder dividends and experience refunds | 312 | 292 | 1,371 | 1,437 | |||||||||||
| Changes in insurance and investment contract liabilities | 1,097 | 821 | (280) | 5,041 | |||||||||||
| Total paid or credited to policyholders | 5,647 | 5,262 | 17,811 | 22,875 | |||||||||||
| Commissions | 531 | 515 | 1,869 | 1,781 | |||||||||||
| Operating and administrative expenses | 929 | 670 | 3,159 | 2,684 | |||||||||||
| Premium taxes | 83 | 75 | 313 | 293 | |||||||||||
| Financing charges | 76 | 74 | 292 | 299 | |||||||||||
| Amortization of finite life intangible assets | 33 | 24 | 117 | 103 | |||||||||||
| Restructuring and acquisition expenses | 27 | - | 104 | - | |||||||||||
| Earnings before income taxes | 730 | 685 | 2,781 | 2,562 | |||||||||||
| Income taxes | 128 | 97 | 463 | 364 | |||||||||||
| Net earnings before non-controlling interests | 602 | 588 | 2,318 | 2,198 | |||||||||||
| Attributable to non-controlling interests | (148) | 205 | (90) | 277 | |||||||||||
| Net earnings | 750 | 383 | 2,408 | 1,921 | |||||||||||
| Preferred share dividends | 33 | 32 | 130 | 115 | |||||||||||
| Net earnings - common shareholders | $ | 717 | $ | 351 | $ | 2,278 | $ | 1,806 | |||||||
| Earnings per common share | |||||||||||||||
| Basic | $ | 0.717 | $ | 0.370 | $ | 2.340 | $ | 1.902 | |||||||
| Diluted | $ | 0.716 | $ | 0.369 | $ | 2.297 | $ | 1.891 | |||||||
| CONSOLIDATED BALANCE SHEETS (unaudited) (in Canadian $ millions) |
||||||||||||||
| December 31 | December 31 | January 1 | ||||||||||||
| 2013 | 2012 | 2012 | ||||||||||||
| Assets | ||||||||||||||
| Cash and cash equivalents | $ | 2,791 | $ | 1,895 | $ | 2,056 | ||||||||
| Bonds | 89,914 | 82,581 | 78,355 | |||||||||||
| Mortgage loans | 19,063 | 17,875 | 17,432 | |||||||||||
| Stocks | 8,554 | 7,051 | 6,656 | |||||||||||
| Investment properties | 4,288 | 3,572 | 3,249 | |||||||||||
| Loans to policyholders | 7,332 | 7,082 | 7,162 | |||||||||||
| 131,942 | 120,056 | 114,910 | ||||||||||||
| Funds held by ceding insurers | 10,832 | 10,599 | 9,978 | |||||||||||
| Goodwill | 5,812 | 5,397 | 5,401 | |||||||||||
| Intangible assets | 3,456 | 3,115 | 3,154 | |||||||||||
| Derivative financial instruments | 593 | 997 | 968 | |||||||||||
| Owner occupied properties | 590 | 514 | 491 | |||||||||||
| Fixed assets | 211 | 154 | 137 | |||||||||||
| Reinsurance assets | 5,070 | 2,064 | 2,061 | |||||||||||
| Premiums in course of collection, accounts and interest receivable | 3,068 | 2,647 | 2,379 | |||||||||||
| Other assets | 2,220 | 1,571 | 1,393 | |||||||||||
| Current income taxes | 165 | 162 | 181 | |||||||||||
| Deferred tax assets | 1,167 | 1,142 | 1,163 | |||||||||||
| Investments on account of segregated fund policyholders | 160,779 | 105,432 | 96,985 | |||||||||||
| Total assets | $ | 325,905 | $ | 253,850 | $ | 239,201 | ||||||||
| Liabilities | ||||||||||||||
| Insurance contract liabilities | $ | 131,174 | $ | 119,973 | $ | 114,785 | ||||||||
| Investment contract liabilities | 889 | 739 | 782 | |||||||||||
| Debentures and other debt instruments | 5,740 | 4,283 | 4,313 | |||||||||||
| Funds held under reinsurance contracts | 270 | 335 | 169 | |||||||||||
| Derivative financial instruments | 744 | 342 | 316 | |||||||||||
| Accounts payable | 1,583 | 1,258 | 1,351 | |||||||||||
| Other liabilities | 2,807 | 2,956 | 2,662 | |||||||||||
| Current income taxes | 981 | 649 | 478 | |||||||||||
| Deferred tax liabilities | 776 | 708 | 810 | |||||||||||
| Repurchase agreements | - | - | 23 | |||||||||||
| Capital trust debentures | 163 | 164 | 815 | |||||||||||
| Investment and insurance contracts on account of segregated fund policyholders |
160,779 | 105,432 | 96,985 | |||||||||||
| Total liabilities | 305,906 | 236,839 | 223,489 | |||||||||||
| Equity | ||||||||||||||
| Non-controlling interests | ||||||||||||||
| Participating account surplus in subsidiaries | 2,354 | 2,451 | 2,187 | |||||||||||
| Non-controlling interests in subsidiaries | 8 | 5 | 3 | |||||||||||
| Shareholders' equity | ||||||||||||||
| Share capital | ||||||||||||||
| Preferred shares | 2,314 | 2,544 | 1,894 | |||||||||||
| Common shares | 7,112 | 5,848 | 5,828 | |||||||||||
| Accumulated surplus | 8,067 | 7,035 | 6,417 | |||||||||||
| Accumulated other comprehensive income (loss) | 87 | (932) | (675) | |||||||||||
| Contributed surplus | 57 | 60 | 58 | |||||||||||
| Total equity | 19,999 | 17,011 | 15,712 | |||||||||||
| Total liabilities and equity | $ | 325,905 | $ | 253,850 | $ | 239,201 | ||||||||
| Segmented Information (unaudited) | ||||||||||||||||||
| Consolidated Net Earnings | ||||||||||||||||||
| For the three months ended December 31, 2013 | ||||||||||||||||||
| United | Lifeco | |||||||||||||||||
| Canada | States | Europe (1) | Corporate | Total | ||||||||||||||
| Income: | ||||||||||||||||||
| Premium income | $ | 2,682 | $ | 924 | $ | 2,244 | $ | - | $ | 5,850 | ||||||||
| Net investment income | ||||||||||||||||||
| Regular net investment income | 637 | 302 | 527 | (36) | 1,430 | |||||||||||||
| Changes in fair value through profit or loss | 224 | (117) | (332) | - | (225) | |||||||||||||
| Total net investment income | 861 | 185 | 195 | (36) | 1,205 | |||||||||||||
| Fee and other income | 330 | 395 | 276 | - | 1,001 | |||||||||||||
| Total income | 3,873 | 1,504 | 2,715 | (36) | 8,056 | |||||||||||||
| Benefits and expenses: | ||||||||||||||||||
| Paid or credited to policyholders | 2,629 | 927 | 2,091 | - | 5,647 | |||||||||||||
| Other | 980 | 454 | 330 | (221) | 1,543 | |||||||||||||
| Financing charges | 29 | 34 | 8 | 5 | 76 | |||||||||||||
| Amortization of finite life intangible assets | 13 | 13 | 7 | - | 33 | |||||||||||||
| Restructuring and acquisition expenses | - | - | 27 | - | 27 | |||||||||||||
| Earnings before income taxes | 222 | 76 | 252 | 180 | 730 | |||||||||||||
| Income taxes | 95 | 14 | 30 | (11) | 128 | |||||||||||||
| Net earnings before non-controlling interests |
127 | 62 | 222 | 191 | 602 | |||||||||||||
| Non-controlling interests | (146) | 2 | (4) | - | (148) | |||||||||||||
| Net earnings | 273 | 60 | 226 | 191 | 750 | |||||||||||||
| Preferred share dividends | 27 | - | 6 | - | 33 | |||||||||||||
| Net earnings before capital allocation | 246 | 60 | 220 | 191 | 717 | |||||||||||||
| Impact of capital allocation | 24 | (4) | (18) | (2) | - | |||||||||||||
| Net earnings - common shareholders | $ | 270 | $ | 56 | $ | 202 | $ | 189 | $ | 717 | ||||||||
| (1) | The Company completed the acquisition of Irish Life on July 18, 2013. The Europe segment includes the results of Irish Life from July 19, 2013 to December 31, 2013. |
| For the three months ended December 31, 2012 | ||||||||||||||||||
| United | Lifeco | |||||||||||||||||
| Canada | States | Europe | Corporate | Total | ||||||||||||||
| Income: | ||||||||||||||||||
| Premium income | $ | 2,468 | $ | 984 | $ | 1,520 | $ | - | $ | 4,972 | ||||||||
| Net investment income | ||||||||||||||||||
| Regular net investment income | 606 | 301 | 441 | (9) | 1,339 | |||||||||||||
| Changes in fair value through profit or loss | (97) | 59 | 245 | - | 207 | |||||||||||||
| Total net investment income | 509 | 360 | 686 | (9) | 1,546 | |||||||||||||
| Fee and other income | 302 | 319 | 166 | - | 787 | |||||||||||||
| Total income | 3,279 | 1,663 | 2,372 | (9) | 7,305 | |||||||||||||
| Benefits and expenses: | ||||||||||||||||||
| Paid or credited to policyholders | 2,171 | 1,163 | 1,928 | - | 5,262 | |||||||||||||
| Other | 521 | 375 | 221 | 143 | 1,260 | |||||||||||||
| Financing charges | 35 | 34 | 4 | 1 | 74 | |||||||||||||
| Amortization of finite life intangible assets | 12 | 10 | 2 | - | 24 | |||||||||||||
| Earnings before income taxes | 540 | 81 | 217 | (153) | 685 | |||||||||||||
| Income taxes | 69 | (2) | 52 | (22) | 97 | |||||||||||||
| Net earnings before non-controlling interests |
471 |
83 |
165 |
(131) |
588 |
|||||||||||||
| Non-controlling interests | 206 | 4 | (5) | - | 205 | |||||||||||||
| Net earnings | 265 | 79 | 170 | (131) | 383 | |||||||||||||
| Preferred share dividends | 21 | - | 5 | 6 | 32 | |||||||||||||
| Net earnings before capital allocation | 244 | 79 | 165 | (137) | 351 | |||||||||||||
| Impact of capital allocation | 19 | (3) | (14) | (2) | - | |||||||||||||
| Net earnings - common shareholders | $ | 263 | $ | 76 | $ | 151 | $ | (139) | $ | 351 | ||||||||
| For the twelve months ended December 31, 2013 | ||||||||||||||||||
| United | Lifeco | |||||||||||||||||
| Canada | States | Europe (1) | Corporate | Total | ||||||||||||||
| Income: | ||||||||||||||||||
| Premium income | $ | 10,182 | $ | 3,180 | $ | 6,874 | $ | - | $ | 20,236 | ||||||||
| Net investment income | ||||||||||||||||||
| Regular net investment income | 2,514 | 1,311 | 1,819 | (40) | 5,604 | |||||||||||||
| Changes in fair value through profit or loss | (1,125) | (706) | (1,148) | - | (2,979) | |||||||||||||
| Total net investment income | 1,389 | 605 | 671 | (40) | 2,625 | |||||||||||||
| Fee and other income | 1,276 | 1,446 | 863 | - | 3,585 | |||||||||||||
| Total income | 12,847 | 5,231 | 8,408 | (40) | 26,446 | |||||||||||||
| Benefits and expenses: | ||||||||||||||||||
| Paid or credited to policyholders | 8,345 | 3,067 | 6,399 | - | 17,811 | |||||||||||||
| Other | 2,983 | 1,616 | 944 | (202) | 5,341 | |||||||||||||
| Financing charges | 115 | 137 | 23 | 17 | 292 | |||||||||||||
| Amortization of finite life intangible assets | 50 | 51 | 16 | - | 117 | |||||||||||||
| Restructuring and acquisition expenses | - | - | 104 | - | 104 | |||||||||||||
| Earnings before income taxes | 1,354 | 360 | 922 | 145 | 2,781 | |||||||||||||
| Income taxes | 291 | 62 | 129 | (19) | 463 | |||||||||||||
| Net earnings before non-controlling interests |
1,063 |
298 |
793 |
164 |
2,318 |
|||||||||||||
| Non-controlling interests | (93) | 7 | (4) | - | (90) | |||||||||||||
| Net earnings | 1,156 | 291 | 797 | 164 | 2,408 | |||||||||||||
| Preferred share dividends | 107 | - | 23 | - | 130 | |||||||||||||
| Net earnings before capital allocation | 1,049 | 291 | 774 | 164 | 2,278 | |||||||||||||
| Impact of capital allocation | 99 | (15) | (73) | (11) | - | |||||||||||||
| Net earnings - common shareholders | $ | 1,148 | $ | 276 | $ | 701 | $ | 153 | $ | 2,278 | ||||||||
| (1) | The Company completed the acquisition of Irish Life on July 18, 2013. The Europe segment includes the results of Irish Life from July 19, 2013 to December 31, 2013. |
| For the twelve months ended December 31, 2012 | ||||||||||||||||||
| United | Lifeco | |||||||||||||||||
| Canada | States | Europe | Corporate | Total | ||||||||||||||
| Income: | ||||||||||||||||||
| Premium income | $ | 9,581 | $ | 3,390 | $ | 6,286 | $ | - | $ | 19,257 | ||||||||
| Net investment income | ||||||||||||||||||
| Regular net investment income | 2,556 | 1,284 | 1,814 | (12) | 5,642 | |||||||||||||
| Changes in fair value through profit or loss | 658 | 501 | 1,509 | - | 2,668 | |||||||||||||
| Total net investment income | 3,214 | 1,785 | 3,323 | (12) | 8,310 | |||||||||||||
| Fee and other income | 1,178 | 1,247 | 605 | - | 3,030 | |||||||||||||
| Total income | 13,973 | 6,422 | 10,214 | (12) | 30,597 | |||||||||||||
| Benefits and expenses: | ||||||||||||||||||
| Paid or credited to policyholders | 9,770 | 4,437 | 8,668 | - | 22,875 | |||||||||||||
| Other | 2,495 | 1,398 | 705 | 160 | 4,758 | |||||||||||||
| Financing charges | 145 | 135 | 18 | 1 | 299 | |||||||||||||
| Amortization of finite life intangible assets | 45 | 48 | 10 | - | 103 | |||||||||||||
| Earnings before income taxes | 1,518 | 404 | 813 | (173) | 2,562 | |||||||||||||
| Income taxes | 211 | 66 | 114 | (27) | 364 | |||||||||||||
| Net earnings before non-controlling interests |
1,307 |
338 |
699 |
(146) |
2,198 |
|||||||||||||
| Non-controlling interests | 268 | 3 | 6 | - | 277 | |||||||||||||
| Net earnings | 1,039 | 335 | 693 | (146) | 1,921 | |||||||||||||
| Preferred share dividends | 79 | - | 22 | 14 | 115 | |||||||||||||
| Net earnings before capital allocation | 960 | 335 | 671 | (160) | 1,806 | |||||||||||||
| Impact of capital allocation | 78 | (14) | (56) | (8) | - | |||||||||||||
| Net earnings - common shareholders | $ | 1,038 | $ | 321 | $ | 615 | $ | (168) | $ | 1,806 | ||||||||
.
Note: During the year, certain comparative figures have been restated or reclassified in the Lifeco December 31, 2013 financial statements.
SOURCE: Great-West Lifeco Inc.
Marlene Klassen, APR
Assistant Vice-President, Communication Services
204-946-7705
Share this article