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.
TSX:GWO
WINNIPEG, July 31, 2013 /CNW/ - Great-West Lifeco Inc. (Lifeco) has reported net earnings attributable to common shareholders of $521 million for the three months ended June 30, 2013, an increase of 7% compared to $488 million in the second quarter of 2012. On a per common share basis, this represents $0.548 per common share for the three months ended June 30, 2013, compared to $0.512 per common share for the same period in 2012.
For the six months ended June 30, 2013, net earnings attributable to common shareholders were $1,038 million, compared to $937 million a year ago. This represents $1.092 per common share for the six months ended June 30, 2013, compared to $0.986 per common share for the same period in 2012.
Highlights - Operating Results
- Consolidated assets under administration at June 30, 2013 were $596 billion, up $50 billion from December 31, 2012.
- Total Company premiums and deposits during the quarter were $15.0 billion, up 14% from a year ago.
- Total Company sales in the second quarter of 2013 were up 30% from the same period in 2012, reflecting strong momentum and growth across all geographies:
- Canada sales were $2.5 billion, up 17% compared to the second quarter of 2012.
- Great-West Financial sales were US$2.5 billion, up 34% compared to the second quarter of 2012.
- Europe Insurance & Annuities sales were $889 million up 7% compared to the second quarter of 2012.
- Putnam sales were US$6.4 billion, up 36% compared to the second quarter of 2012.
- The Company maintained a strong ROE of 16.8% based on operating earnings and 15.6% based on net earnings.
- 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 233% at June 30, 2013. This includes the impact of capital activity in advance of the closing of the Irish Life Group Limited (Irish Life) acquisition which contributed approximately 15 points to the ratio.
- Credit experience remained benign with minimal impacts from credit downgrade and impairment activity.
- The Company declared a quarterly common dividend of $0.3075 per common share payable September 30, 2013.
Highlights - Irish Life Acquisition
On July 18, 2013, the Company, through its wholly-owned subsidiary Canada Life Limited, completed its previously announced €1.3 billion acquisition of Irish Life. Coincident with the closing, Lifeco's 48,660,000 outstanding subscription receipts have been exchanged, on a one for one basis, for common shares of Great-West Lifeco Inc. The subscription receipt exchange increased the total number of outstanding common shares at July 18, 2013 to 1,000,450,840.
OPERATING RESULTS
Consolidated net earnings for Lifeco comprise the net earnings of The Great-West Life Assurance Company (Great-West Life), Canada Life Financial Corporation (CLFC), London Life Insurance Company (London Life), Great-West Life & Annuity Insurance Company (Great-West Financial), and Putnam Investments, LLC (Putnam), together with Lifeco's corporate results.
CANADA
Net earnings attributable to common shareholders for the second quarter of 2013 were $281 million compared to $253 million in the second quarter of 2012. For the six months ended June 30, 2013 net earnings attributable to common shareholders were $546 million compared to $495 million for the same period in 2012.
Total sales in the second quarter of 2013 were $2.5 billion, an increase of 17% compared to the second quarter of 2012. This increase was due to strong Wealth Management sales which were up 22% from a year ago, reflecting a 49% increase in sales of group retirement products. Wealth Management had positive net cash flow of $162 million during the quarter. Individual Insurance and Group insurance sales were lower than a year ago by 11% and 24% respectively. Total sales for the six months ended June 30, 2013 were $5.6 billion compared to $4.8 billion in 2012.
Total Canada segment assets under administration at June 30, 2013 were $142 billion, compared to $138 billion at December 31, 2012.
UNITED STATES
Net earnings attributable to common shareholders for the second quarter of 2013 were $73 million compared to $85 million in the second quarter of 2012. Great-West Financial reported net earnings of $87 million in the second quarter compared to $90 million for the same period last year. Putnam reported a net loss of $14 million in the second quarter compared to a net loss of $5 million a year ago. For the six months ended June 30, 2013 net earnings attributable to common shareholders were $144 million compared to $159 million in 2012.
Great-West Financial sales in the second quarter of 2013 were US$2.5 billion, up 34% compared to the second quarter of 2012 reflecting strong sales results in both the public/non-profit and 401(k) markets. Sales for the six months ended June 30, 2013 were US$5.0 billion compared to US$4.1 billion in 2012.
Putnam assets under management as at June 30, 2013 were US$134 billion compared to US$120 billion a year ago. Sales in the second quarter were US$6.4 billion, up 36% from a year ago. In quarter redemptions of US$6.8 billion resulted in net asset outflows of US$0.4 billion compared to net outflows of US$0.3 billion for the same period in 2012.
Total United States segment assets under administration at June 30, 2013 were $378 billion compared to $333 billion at December 31, 2012.
EUROPE
Net earnings attributable to common shareholders for the second quarter of 2013 were $178 million compared to $159 million in the second quarter of 2012. For the six months ended June 30, 2013 net earnings attributable to common shareholders were $370 million compared to $299 million for the same period in 2012.
Sales in Insurance & Annuities for the second quarter of 2013 were $889 million, up 7% compared to $828 million a year ago, reflecting higher payout annuity sales in the U.K. partly offset by lower wealth management single premiums in the U.K. Total sales for the six months ended June 30, 2013 were $1.9 billion compared to $1.6 billion in 2012.
Total Europe segment assets under administration at June 30, 2013 were $76 billion, up slightly from $75 billion at December 31, 2012.
CORPORATE
Net earnings in the Lifeco corporate segment attributable to common shareholders were a net loss of $11 million in the second quarter of 2013 compared to a net loss of $9 million in the second quarter of 2012. For the six months ended June 30, 2013 net earnings attributable to common shareholders was a net loss of $22 million compared to a net loss of $16 million for the same period in 2012.
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 September 30, 2013 to shareholders of record at the close of business August 30, 2013.
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 J First Preferred Shares of $0.3750 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 September 30, 2013 to shareholders of record at the close of business August 30, 2013.
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. Effective July 18, 2013 Irish Life is part of Great-West Lifeco's operations. Irish Life assets and earnings are not reflected in the second quarter financial results. Great-West Lifeco and its companies have $596 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 due to, but not limited to, important factors such as sales levels, premium income, fee income, expense levels, mortality experience, morbidity experience, policy lapse rates and taxes, as well as general economic, political and market factors in North America and internationally, interest and foreign exchange rates, global equity and capital markets, business competition, technological change, changes in government regulations, changes in accounting policies and the effect of applying future accounting policy changes, unexpected judicial or regulatory proceedings, catastrophic events, and the Company's ability to complete strategic transactions and integrate acquisitions. The reader is cautioned that the foregoing list of important factors is not exhaustive, and there may be other factors, including factors set out under "Risk Management and Control Practices" in the Company's Annual Management's Discussion and Analysis and any listed in other filings with securities regulators, which are available for review at www.sedar.com. The reader is also cautioned to consider these and other factors carefully and to not place undue reliance on forward-looking statements. Other than as specifically required by applicable law, the Company has no intention 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 reconciliations of these non-IFRS financial measures to measures prescribed by IFRS.
Further information
Selected financial information is attached.
Great-West Lifeco's second quarter conference call and audio webcast will be held August 1, 2013 at 10:00 a.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 August 1 to 8, 2013, 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 August 1, 2013 until August 2, 2014.
Additional information relating to Lifeco, including the most recent interim unaudited condensed consolidated financial statements, interim Management's Discussion and Analysis (MD&A), and CEO/CFO certificates 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 six months ended | |||||||||||||||
| June 30 | March 31 | June 30 | June 30 | June 30 | ||||||||||||
| 2013 | 2013 | 2012(2) | 2013 | 2012(2) | ||||||||||||
| Premiums and deposits: | ||||||||||||||||
| Life insurance, guaranteed annuities | ||||||||||||||||
| and insured health products | $ | 4,332 | $ | 4,580 | $ | 4,524 | $ | 8,912 | $ | 9,053 | ||||||
| Self-funded premium equivalents |
||||||||||||||||
| (Administrative services only contracts) | 654 | 644 | 673 | 1,298 | 1,358 | |||||||||||
| Segregated funds deposits: | ||||||||||||||||
| Individual products | 1,431 | 1,768 | 1,436 | 3,199 | 2,995 | |||||||||||
| Group products | 1,900 | 2,006 | 1,595 | 3,906 | 3,365 | |||||||||||
| Proprietary mutual funds and | ||||||||||||||||
| institutional deposits | 6,677 | 7,642 | 4,898 | 14,319 | 10,837 | |||||||||||
| Total premiums and deposits | 14,994 | 16,640 | 13,126 | 31,634 | 27,608 | |||||||||||
| Fee and other income | 811 | 778 | 734 | 1,589 | 1,458 | |||||||||||
| Paid or credited to policyholders(1) | 1,321 | 5,215 | 5,979 | 6,536 | 10,722 | |||||||||||
| Net earnings - common shareholders(2) | 521 | 517 | 488 | 1,038 | 937 | |||||||||||
| Per common share | ||||||||||||||||
| Basic earnings(2) | $ | 0.548 | $ | 0.544 | $ | 0.512 | $ | 1.092 | $ | 0.986 | ||||||
| Dividends paid | 0.3075 | 0.3075 | 0.3075 | 0.615 | 0.615 | |||||||||||
| Book value(2) | 13.48 | 12.87 | 12.42 | |||||||||||||
| Return on common shareholders' equity: | ||||||||||||||||
| Net operating earnings(2) | 16.8% | 16.8% | 16.0% | |||||||||||||
| Net earnings(2) | 15.6% | 15.7% | 17.1% | |||||||||||||
| Total assets(2) | $ | 264,158 | $ | 261,338 | $ | 245,232 | ||||||||||
| Proprietary mutual funds and | ||||||||||||||||
| institutional net assets | 149,273 | 146,031 | 129,028 | |||||||||||||
| Total assets under management(2) | 413,431 | 407,369 | 374,260 | |||||||||||||
| Other assets under administration | 182,305 | 174,487 | 149,258 | |||||||||||||
| Total assets under administration(2) | $ | 595,736 | $ | 581,856 | $ | 523,518 | ||||||||||
| Total equity(2) | $ | 17,843 | $ | 17,268 | $ | 16,121 | ||||||||||
The Company uses operating earnings, a non-International Financial Reporting Standards financial measure, which excludes the impact of certain litigation provisions described in note 30 to the Company's December 31, 2012 consolidated financial statements.
| (1) | Paid or credited to policyholders includes the impact of changes in fair values of assets supporting liabilities. |
| (2) | 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. |
CONSOLIDATED STATEMENTS OF EARNINGS (unaudited)
(in Canadian $ millions except per share amounts)
| For the three months ended | For the six months ended | |||||||||||||||||
| June 30 | March 31 | June 30 | June 30 | June 30 | ||||||||||||||
| 2013 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||
| Income | ||||||||||||||||||
| Premium income | ||||||||||||||||||
| Gross premiums written | $ | 5,113 | $ | 5,319 | $ | 5,233 | $ | 10,432 | $ | 10,431 | ||||||||
| Ceded premiums | (781) | (739) | (709) | (1,520) | (1,378) | |||||||||||||
| Total net premiums | 4,332 | 4,580 | 4,524 | 8,912 | 9,053 | |||||||||||||
| Net investment income | ||||||||||||||||||
| Regular net investment income | 1,401 | 1,362 | 1,433 | 2,763 | 2,876 | |||||||||||||
| Changes in fair value through profit or loss | (3,200) | 465 | 1,106 | (2,735) | 910 | |||||||||||||
| Total net investment income | (1,799) | 1,827 | 2,539 | 28 | 3,786 | |||||||||||||
| Fee and other income | 811 | 778 | 734 | 1,589 | 1,458 | |||||||||||||
| 3,344 | 7,185 | 7,797 | 10,529 | 14,297 | ||||||||||||||
| Benefits and expenses | ||||||||||||||||||
| Policyholder benefits | ||||||||||||||||||
| Insurance and investment contracts | ||||||||||||||||||
| Gross | 3,967 | 4,755 | 4,311 | 8,722 | 8,917 | |||||||||||||
| Ceded | (362) | (374) | (367) | (736) | (754) | |||||||||||||
| Total net policyholder benefits | 3,605 | 4,381 | 3,944 | 7,986 | 8,163 | |||||||||||||
| Policyholder dividends and experience refunds | 363 | 367 | 367 | 730 | 731 | |||||||||||||
| Changes in insurance and investment contract liabilities |
(2,647) | 467 | 1,668 | (2,180) | 1,828 | |||||||||||||
| Total paid or credited to policyholders | 1,321 | 5,215 | 5,979 | 6,536 | 10,722 | |||||||||||||
| Commissions | 443 | 432 | 415 | 875 | 825 | |||||||||||||
| Operating and administrative expenses | 704 | 674 | 642 | 1,378 | 1,285 | |||||||||||||
| Premium taxes | 72 | 74 | 72 | 146 | 144 | |||||||||||||
| Financing charges | 74 | 67 | 77 | 141 | 153 | |||||||||||||
| Amortization of finite life intangible assets | 29 | 27 | 28 | 56 | 54 | |||||||||||||
| Earnings before income taxes | 701 | 696 | 584 | 1,397 | 1,114 | |||||||||||||
| Income taxes | 128 | 128 | 70 | 256 | 126 | |||||||||||||
| Net earnings before non-controlling interests | 573 | 568 | 514 | 1,141 | 988 | |||||||||||||
| Attributable to non-controlling interests | 20 | 18 | (2) | 38 | (2) | |||||||||||||
| Net earnings | 553 | 550 | 516 | 1,103 | 990 | |||||||||||||
| Preferred share dividends | 32 | 33 | 28 | 65 | 53 | |||||||||||||
| Net earnings - common shareholders | $ | 521 | $ | 517 | $ | 488 | $ | 1,038 | $ | 937 | ||||||||
| Earnings per common share | ||||||||||||||||||
| Basic | $ | 0.548 | $ | 0.544 | $ | 0.512 | $ | 1.092 | $ | 0.986 | ||||||||
| Diluted | $ | 0.547 | $ | 0.544 | $ | 0.509 | $ | 1.091 | $ | 0.980 | ||||||||
CONSOLIDATED BALANCE SHEETS (unaudited)
(in Canadian $ millions)
| June 30 | December 31 | January 1 | |||||||||
| 2013 | 2012 | 2012 | |||||||||
| Assets | |||||||||||
| Cash and cash equivalents | $ | 2,788 | $ | 1,895 | $ | 2,056 | |||||
| Bonds | 85,566 | 82,581 | 78,355 | ||||||||
| Mortgage loans | 18,482 | 17,875 | 17,432 | ||||||||
| Stocks | 7,278 | 7,051 | 6,656 | ||||||||
| Investment properties | 3,566 | 3,572 | 3,249 | ||||||||
| Loans to policyholders | 7,281 | 7,082 | 7,162 | ||||||||
| 124,961 | 120,056 | 114,910 | |||||||||
| Funds held by ceding insurers | 9,640 | 10,537 | 9,923 | ||||||||
| Goodwill | 5,404 | 5,397 | 5,401 | ||||||||
| Intangible assets | 3,204 | 3,115 | 3,154 | ||||||||
| Derivative financial instruments | 640 | 997 | 968 | ||||||||
| Owner occupied properties | 525 | 514 | 491 | ||||||||
| Fixed assets | 159 | 154 | 137 | ||||||||
| Reinsurance assets | 2,204 | 2,064 | 2,061 | ||||||||
| Other assets | 5,572 | 4,688 | 4,062 | ||||||||
| Deferred tax assets | 1,208 | 1,142 | 1,163 | ||||||||
| Investments on account of segregated fund policyholders | 110,641 | 104,948 | 96,582 | ||||||||
| Total assets | $ | 264,158 | $ | 253,612 | $ | 238,852 | |||||
| Liabilities | |||||||||||
| Insurance contract liabilities | $ | 119,223 | $ | 119,919 | $ | 114,730 | |||||
| Investment contract liabilities | 710 | 739 | 782 | ||||||||
| Debentures and other debt instruments | 5,166 | 4,283 | 4,313 | ||||||||
| Funds held under reinsurance contracts | 355 | 335 | 169 | ||||||||
| Derivative financial instruments | 584 | 342 | 316 | ||||||||
| Other liabilities | 6,828 | 5,163 | 4,600 | ||||||||
| Deferred tax liabilities | 656 | 708 | 810 | ||||||||
| Repurchase agreements | 1,989 | - | 23 | ||||||||
| Capital trust debentures | 163 | 164 | 815 | ||||||||
| Investment and insurance contracts on account of segregated fund | |||||||||||
| policyholders | 110,641 | 104,948 | 96,582 | ||||||||
| Total liabilities | 246,315 | 236,601 | 223,140 | ||||||||
| Equity | |||||||||||
| Non-controlling interests | |||||||||||
| Participating account surplus in subsidiaries | 2,466 | 2,451 | 2,187 | ||||||||
| Non-controlling interests in subsidiaries | 6 | 5 | 3 | ||||||||
| Shareholders' equity | |||||||||||
| Share capital | |||||||||||
| Preferred shares | 2,544 | 2,544 | 1,894 | ||||||||
| Common shares | 5,878 | 5,848 | 5,828 | ||||||||
| Accumulated surplus | 7,488 | 7,035 | 6,417 | ||||||||
| Accumulated other comprehensive loss | (597) | (932) | (675) | ||||||||
| Contributed surplus | 58 | 60 | 58 | ||||||||
| Total equity | 17,843 | 17,011 | 15,712 | ||||||||
| Total liabilities and equity | $ | 264,158 | $ | 253,612 | $ | 238,852 | |||||
Segmented Information (unaudited)
Consolidated Net Earnings
| For the three months ended June 30, 2013 | |||||||||||||||||
| United | Lifeco | ||||||||||||||||
| Canada | States | Europe | Corporate | Total | |||||||||||||
| Income: | |||||||||||||||||
| Premium income | $ | 2,469 | $ | 700 | $ | 1,163 | $ | - | $ | 4,332 | |||||||
| Net investment income | |||||||||||||||||
| Regular net investment income | 620 | 342 | 436 | 3 | 1,401 | ||||||||||||
| Changes in fair value through profit or loss | (1,276) | (501) | (1,423) | - | (3,200) | ||||||||||||
| Total net investment income | (656) | (159) | (987) | 3 | (1,799) | ||||||||||||
| Fee and other income | 295 | 343 | 173 | - | 811 | ||||||||||||
| Total income | 2,108 | 884 | 349 | 3 | 3,344 | ||||||||||||
| Benefits and expenses: | |||||||||||||||||
| Paid or credited to policyholders | 1,053 | 366 | (98) | - | 1,321 | ||||||||||||
| Other | 645 | 373 | 194 | 7 | 1,219 | ||||||||||||
| Financing charges | 28 | 34 | 5 | 7 | 74 | ||||||||||||
| Amortization of finite life intangible assets | 13 | 13 | 3 | - | 29 | ||||||||||||
| Earnings before income taxes | 369 | 98 | 245 | (11) | 701 | ||||||||||||
| Income taxes | 67 | 20 | 44 | (3) | 128 | ||||||||||||
| Net earnings before non-controlling | |||||||||||||||||
| interests | 302 | 78 | 201 | (8) | 573 | ||||||||||||
| Non-controlling interests | 19 | 1 | - | - | 20 | ||||||||||||
| Net earnings | 283 | 77 | 201 | (8) | 553 | ||||||||||||
| Preferred share dividends | 27 | - | 5 | - | 32 | ||||||||||||
| Net earnings before capital allocation | 256 | 77 | 196 | (8) | 521 | ||||||||||||
| Impact of capital allocation | 25 | (4) | (18) | (3) | - | ||||||||||||
| Net earnings - common shareholders | $ | 281 | $ | 73 | $ | 178 | $ | (11) | $ | 521 | |||||||
| For the three months ended June 30, 2012 |
|||||||||||||||||
| United | Lifeco | ||||||||||||||||
| Canada | States | Europe | Corporate | Total | |||||||||||||
| Income: | |||||||||||||||||
| Premium income | $ | 2,351 | $ | 706 | $ | 1,467 | $ | - | $ | 4,524 | |||||||
| Net investment income | |||||||||||||||||
| Regular net investment income | 626 | 327 | 477 | 3 | 1,433 | ||||||||||||
| Changes in fair value through profit or loss | 412 | 177 | 517 | - | 1,106 | ||||||||||||
| Total net investment income | 1,038 | 504 | 994 | 3 | 2,539 | ||||||||||||
| Fee and other income | 270 | 306 | 158 | - | 734 | ||||||||||||
| Total income | 3,659 | 1,516 | 2,619 | 3 | 7,797 | ||||||||||||
| Benefits and expenses: | |||||||||||||||||
| Paid or credited to policyholders | 2,681 | 1,025 | 2,273 | - | 5,979 | ||||||||||||
| Other | 638 | 335 | 150 | 6 | 1,129 | ||||||||||||
| Financing charges | 39 | 34 | 4 | - | 77 | ||||||||||||
| Amortization of finite life intangible assets | 11 | 14 | 3 | - | 28 | ||||||||||||
| Earnings before income taxes | 290 | 108 | 189 | (3) | 584 | ||||||||||||
| Income taxes | 42 | 21 | 7 | - | 70 | ||||||||||||
| Net earnings before non-controlling | |||||||||||||||||
| interests | 248 | 87 | 182 | (3) | 514 | ||||||||||||
| Non-controlling interests | (4) | (2) | 4 | - | (2) | ||||||||||||
| Net earnings | 252 | 89 | 178 | (3) | 516 | ||||||||||||
| Preferred share dividends | 19 | - | 5 | 4 | 28 | ||||||||||||
| Net earnings before capital allocation | 233 | 89 | 173 | (7) | 488 | ||||||||||||
| Impact of capital allocation | 20 | (4) | (14) | (2) | - | ||||||||||||
| Net earnings - common shareholders | $ | 253 | $ | 85 | $ | 159 | $ | (9) | $ | 488 | |||||||
| For the six months ended June 30, 2013 |
|||||||||||||||||
| United | Lifeco | ||||||||||||||||
| Canada | States | Europe | Corporate | Total | |||||||||||||
| Income: | |||||||||||||||||
| Premium income | $ | 4,984 | $ | 1,329 | $ | 2,599 | $ | - | $ | 8,912 | |||||||
| Net investment income | |||||||||||||||||
| Regular net investment income | 1,239 | 665 | 863 | (4) | 2,763 | ||||||||||||
| Changes in fair value through profit or loss | (1,220) | (507) | (1,008) | - | (2,735) | ||||||||||||
| Total net investment income | 19 | 158 | (145) | (4) | 28 | ||||||||||||
| Fee and other income | 584 | 674 | 331 | - | 1,589 | ||||||||||||
| Total income | 5,587 | 2,161 | 2,785 | (4) | 10,529 | ||||||||||||
| Benefits and expenses: | |||||||||||||||||
| Paid or credited to policyholders | 3,509 | 1,126 | 1,901 | - | 6,536 | ||||||||||||
| Other | 1,278 | 745 | 366 | 10 | 2,399 | ||||||||||||
| Financing charges | 57 | 68 | 9 | 7 | 141 | ||||||||||||
| Amortization of finite life intangible assets | 25 | 26 | 5 | - | 56 | ||||||||||||
| Earnings before income taxes | 718 | 196 | 504 | (21) | 1,397 | ||||||||||||
| Income taxes | 134 | 40 | 87 | (5) | 256 | ||||||||||||
| Net earnings before non-controlling | |||||||||||||||||
| interests | 584 | 156 | 417 | (16) | 1,141 | ||||||||||||
| Non-controlling interests | 34 | 4 | - | - | 38 | ||||||||||||
| Net earnings | 550 | 152 | 417 | (16) | 1,103 | ||||||||||||
| Preferred share dividends | 54 | - | 11 | - | 65 | ||||||||||||
| Net earnings before capital allocation | 496 | 152 | 406 | (16) | 1,038 | ||||||||||||
| Impact of capital allocation | 50 | (8) | (36) | (6) | - | ||||||||||||
| Net earnings - common shareholders | $ | 546 | $ | 144 | $ | 370 | $ | (22) | $ | 1,038 |
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| For the six months ended June 30, 2012 |
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| United | Lifeco | ||||||||||||||||
| Canada | States | Europe | Corporate | Total | |||||||||||||
| Income: | |||||||||||||||||
| Premium income | $ | 4,716 | $ | 1,527 | $ | 2,810 | $ | - | $ | 9,053 | |||||||
| Net investment income | |||||||||||||||||
| Regular net investment income | 1,284 | 651 | 940 | 1 | 2,876 | ||||||||||||
| Changes in fair value through profit or loss | 262 | 198 | 450 | - | 910 | ||||||||||||
| Total net investment income | 1,546 | 849 | 1,390 | 1 | 3,786 | ||||||||||||
| Fee and other income | 547 | 608 | 303 | - | 1,458 | ||||||||||||
| Total income | 6,809 | 2,984 | 4,503 | 1 | 14,297 | ||||||||||||
| Benefits and expenses: | |||||||||||||||||
| Paid or credited to policyholders | 4,866 | 2,028 | 3,828 | - | 10,722 | ||||||||||||
| Other | 1,286 | 666 | 292 | 10 | 2,254 | ||||||||||||
| Financing charges | 77 | 67 | 9 | - | 153 | ||||||||||||
| Amortization of finite life intangible assets | 22 | 27 | 5 | - | 54 | ||||||||||||
| Earnings before income taxes | 558 | 196 | 369 | (9) | 1,114 | ||||||||||||
| Income taxes | 75 | 30 | 23 | (2) | 126 | ||||||||||||
| Net earnings before non-controlling | |||||||||||||||||
| interests | 483 | 166 | 346 | (7) | 988 | ||||||||||||
| Non-controlling interests | (10) | - | 8 | - | (2) | ||||||||||||
| Net earnings | 493 | 166 | 338 | (7) | 990 | ||||||||||||
| Preferred share dividends | 37 | - | 11 | 5 | 53 | ||||||||||||
| Net earnings before capital allocation | 456 | 166 | 327 | (12) | 937 | ||||||||||||
| Impact of capital allocation | 39 | (7) | (28) | (4) | - | ||||||||||||
| Net earnings - common shareholders | $ | 495 | $ | 159 | $ | 299 | $ | (16) | $ | 937 | |||||||
SOURCE: Great-West Lifeco Inc.
Marlene Klassen, APR
Assistant Vice-President, Communication Services
204-946-7705
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