Great-West Lifeco reports third quarter 2015 results Français

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Great-West Lifeco Inc.

Nov 05, 2015, 11:39 ET

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.

TORONTO, Nov. 5, 2015 /CNW/ - Great-West Lifeco Inc. (Lifeco) has reported net earnings attributable to common shareholders of $720 million or $0.724 per common share for the three months ended September 30, 2015 compared to $687 million or $0.687 per common share for the same period in 2014, an increase of 5%.

For the nine months ended September 30, 2015, net earnings attributable to common shareholders were $2,079 million, compared to $1,889 million for the same period in 2014.  This represents $2.086 per common share for the nine months ended September 30, 2015, compared to $1.891 per common share for the same period in 2014, an increase of 10%.

Consolidated assets under administration at September 30, 2015 grew to approximately $1.2 trillion, up $91 billion from December 31, 2014.

Highlights - In Quarter

  • Total Company sales in the third quarter of 2015 of $36.5 billion were up 71% from the same quarter in 2014:
    • Canada sales were $2.9 billion, up 7%, reflecting strong sales across all lines of business.
    • Europe sales were $7.7 billion, up 165%, primarily due to Irish Life Investment Managers' completion of new fund mandates during the quarter.
    • Great-West Financial sales were US$11.9 billion, up 93%, primarily due to an increase in large plan sales in Empower Retirement.
    • Putnam gross sales were US$7.8 billion, down 5% overall.  Institutional sales increased 27%, while mutual fund sales decreased by 22%, reflective of the decline in industry flows in the segments where Putnam operates.
  • The Company maintained a strong ROE of 15.2% based on net earnings.
  • The Company's capital position remained very strong. The Great-West Life Assurance Company reported a Minimum Continuing Capital Surplus Requirements (MCCSR) ratio of 234% at September 30, 2015.
  • The Company declared a quarterly common dividend of $0.3260 per common share payable December 31, 2015.

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.

CANADA
The Canada segment of Lifeco includes the operating results of the Canadian businesses operated by Great-West Life, London Life and Canada Life, together with an allocation of a portion of Lifeco's corporate results.  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 third quarter of 2015 were $326 million compared to $330 million in the third quarter of 2014.  For the nine months ended September 30, 2015, net earnings attributable to common shareholders were $933 million compared to $928 million for the same period in 2014.

Total sales in the third quarter of 2015 were $2.9 billion, up from $2.7 billion in the third quarter of 2014, reflecting strong sales in Individual Insurance, Wealth Management and Group Insurance.  Total sales for the nine months ended September 30, 2015 were $9.1 billion compared to $8.9 billion for the same period in 2014.

Total Canada segment assets under administration at September 30, 2015 were $164 billion, compared to $161 billion at December 31, 2014.

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, through the Empower Retirement brand, provides an array of financial security products, including employer-sponsored defined contribution plans, administrative and record-keeping services, individual retirement accounts, fund management and investment and advisory services.  It also provides life insurance, 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 third quarter of 2015 were $96 million, reflecting Great-West Financial net earnings of $104 million and a net loss of $8 million for Putnam, compared to $107 million in the third quarter of 2014.  For the nine months ended September 30, 2015, net earnings attributable to common shareholders were $284 million compared to $217 million for the same period in 2014.

Great-West Financial sales in the third quarter of 2015 were US$11.9 billion, up from US$6.2 billion in the third quarter of 2014, primarily due to an increase in large plan sales in Empower Retirement.  Sales for the nine months ended September 30, 2015 were US$27.7 billion compared to US$11.3 billion in 2014.

Putnam average assets under management for the three months ended September 30, 2015 were US$153.3 billion, a decrease of 3% for the same period in 2014 due to a sharp decline in markets. For the nine months ended September 30, 2015, Putnam average assets under management increased 2% to US$157.3 billion compared to the same period in 2014.  Net asset inflows for the third quarter of 2015 were US$0.1 billion compared to net asset outflows of US$1.8 billion for the second quarter of 2015.

Total United States segment assets under administration at September 30, 2015 were $759 billion compared to $697 billion at December 31, 2014.

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.

Net earnings attributable to common shareholders for the third quarter of 2015 were $296 million, up 14% compared to $259 million in the third quarter of 2014.  For the nine months ended September 30, 2015, net earnings attributable to common shareholders were $871 million compared to $764 million for the same period in 2014.

Insurance & Annuities sales for the third quarter of 2015 were $7.7 billion, compared to $2.9 billion a year ago, an increase of 165%, primarily due to higher fund management sales in Ireland.  Sales for the nine months ended September 30, 2015 were $15.6 billion compared to $9.2 billion for the same period in 2014.  The increase was primarily due to the acquisition of Equitable Life's annuity business in the first quarter of 2015 and higher fund management sales in Ireland.

Total Europe segment assets under administration at September 30, 2015 were $231 billion, up from $205 billion at December 31, 2014.

LIFECO 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 was $2 million in the third quarter of 2015 compared to a net loss of $9 million in the third quarter of 2014.  For the nine months ended September 30, 2015, the net earnings attributable to common shareholders were a net loss of $9 million compared to a net loss of $20 million for the same period in 2014.

QUARTERLY DIVIDENDS
At its meeting today, the Board of Directors approved a quarterly dividend of $0.3260 per share on the common shares of the Company payable December 31, 2015 to shareholders of record at the close of business December 3, 2015.

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;
  • Series R First Preferred Shares of $0.3000 per share; and
  • Series S First Preferred Shares of $0.328125 per share

all payable December 31, 2015 to shareholders of record at the close of business December 3, 2015.

For purposes of the Income Tax Act (Canada), and any similar provincial legislation, the dividends referred to above are eligible dividends.

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 $1.2 trillion in consolidated 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, reinsurance, taxes, inflation, general economic, political and market factors in North America and internationally, interest and foreign exchange rates, investment values, global equity and capital markets, business competition, continuity and availability of personnel and third party service providers, 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 and assumptions that could cause actual results to differ materially from those contained in forward-looking statements include technological change, breaches or failure of information systems and security (including cyber attacks), payments required under investment products, 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 2014 Annual 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", "assets under management", "assets under administration" and other similar expressions.  Non-IFRS financial measures are used to provide management and investors with additional measures of performance to help assess results where no comparable IFRS measure exists.  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 third quarter conference call and audio webcast will be held November 5, 2015 at 2:00 p.m. (ET).  The call and webcast can be accessed through www.greatwestlifeco.com or by phone at:

A replay of the call will be available from November 5, 2015 to November 12, 2015, and can be accessed by calling 1-800-408-3053 or 905-694-9451 in Toronto (passcode: 8784372). The archived webcast will be available on www.greatwestlifeco.com from November 5, 2015 to November 4, 2016.

Additional information relating to Lifeco, including the most recent interim unaudited consolidated financial statements, interim Management's Discussion and Analysis (MD&A) 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 nine months ended
    September 30
2015 		    June 30
2015 		    September 30
2014(2)(4) 		      September 30
2015 		    September 30
2014(2)
Premiums and deposits:                                                
  Net premium income (Life insurance,                                                
    guaranteed annuities and insured health                                                
    products)  $   5,891      $   5,516      $   4,690        $   18,339     $   15,721
  Policyholder deposits (segregated funds):                                                
    Individual products     3,157         3,031         2,865           9,169         8,641
    Group products     2,738         1,835         1,824           6,608         7,128
  Self-funded premium equivalents                                                
    (Administrative services only contracts)(1)     639         659         633           1,960         1,949
  Proprietary mutual funds and institutional                                                
    deposits(1)(2)     16,807         11,032         10,690           40,777         32,577
Total premiums and deposits(1)     29,232         22,073         20,702           76,853         66,016
                                                   
Fee and other income     1,241         1,226         1,092           3,725         3,261
Paid or credited to policyholders(3)     5,833         1,588         5,966           17,310         21,035
                                                   
Earnings                                                
Net earnings - common shareholders  $   720      $   659      $   687        $   2,079     $   1,889
  Per common share                                                
    Basic earnings     0.724         0.661         0.687           2.086         1.891
    Dividends paid     0.3260         0.3260         0.3075           0.9780         0.9225
    Book value(4)     19.40         18.28         16.36                      
                                                   
Return on common shareholders' equity(4)(5)                                                
  Operating earnings(6)     15.2%         15.7%         15.1%                      
  Net earnings     15.2%         15.7%         16.5%                      
                                                   
Total assets(4)  $   389,935      $   376,428      $   349,041                      
  Proprietary mutual funds and institutional net                                                
    assets(7)     239,050         232,168         207,451                      
Total assets under management(4)(7)     628,985         608,596         556,492                      
  Other assets under administration(8)     524,813         539,259         465,264                      
Total assets under administration(4) $   1,153,798      $   1,147,855      $   1,021,756                      
Total equity(4)  $   24,534      $   23,470      $   21,448                      
                                                 
(1)  In addition to premiums and deposits reported in the financial statements, the Company includes premium equivalents on self-funded group insurance administrative
services only (ASO) contracts and deposits on proprietary mutual funds and institutional accounts to calculate total premiums and deposits (a non-IFRS financial
measure).  This measure provides useful information as it is an indicator of top line growth.
(2)  Comparative figures for premiums and deposits (a non-IFRS financial measure) have been restated for consistency across the Company's business units.
(3) Paid or credited to policyholders includes the impact of changes in fair values of assets supporting insurance and investment contract liabilities.
(4)  Comparative figures have been adjusted as described in note 2 to the Company's condensed consolidated interim unaudited financial statements for the period
ended September 30, 2015.
(5)  Return on shareholders' equity is detailed within the "Capital Allocation Methodology" section of the Company's September 30, 2015 Management's Discussion
and Analysis.
(6) Operating earnings (a non-IFRS financial measure) excludes the impact of certain litigation provisions described in note 32 to the Company's December 31, 2014
consolidated annual audited financial statements.
(7) Total assets under management (a non-IFRS financial measure) provides an indicator of the size and volume of the overall business of the Company.  Services
provided in respect of assets under management include the selection of investments, the provision of investment advice and discretionary portfolio management
on behalf of clients.  This includes internally and externally managed funds where the Company has oversight over the investment policies.
(8) Other assets under administration (a non-IFRS financial measure) includes assets where the Company only provides administration services for which the Company earns fee and other income.  These assets are beneficially owned by clients and the Company does not direct the investing activities.  Services provided relating to assets under administration includes recordkeeping, safekeeping, collecting investment income, settling of transactions or other administrative services.
Administrative services are an important aspect of the overall business of the Company and should be considered when comparing volumes, size and trends.
   
CONSOLIDATED STATEMENTS OF EARNINGS (unaudited)
(in Canadian $ millions except per share amounts)
 
   For the three months ended       For the nine months ended
  September 30     June 30   September 30       September 30     September 30
  2015     2015   2014         2015     2014
                                               
Income                                              
  Premium income                                              
    Gross premiums written $   6,796     $   6,410   $   5,527         $   21,012     $   18,284
    Ceded premiums     (905)         (894)       (837)           (2,673)         (2,563)
  Total net premiums     5,891         5,516       4,690           18,339         15,721
  Net investment income                                              
    Regular net investment income     1,546         1,519       1,479           4,601         4,494
    Changes in fair value through profit or loss     (82)         (4,037)       1,190           (1,166)         4,982
  Total net investment income     1,464         (2,518)       2,669           3,435         9,476
  Fee and other income     1,241         1,226       1,092           3,725         3,261
      8,596         4,224       8,451           25,499         28,458
Benefits and expenses                                              
  Policyholder benefits                                              
    Insurance and investment contracts                                              
      Gross       5,726         5,127       4,635           16,493         14,028
      Ceded       (481)         (490)       (464)           (1,454)         (1,415)
  Total net policyholder benefits     5,245         4,637       4,171           15,039         12,613
  Policyholder dividends and experience refunds     401         374       381           1,156         1,127
  Changes in insurance and investment contract liabilities     187         (3,423)       1,414           1,115         7,295
  Total paid or credited to policyholders     5,833         1,588       5,966           17,310         21,035
                                                   
  Commissions     565         554       519           1,634         1,570
  Operating and administrative expenses     1,132         1,081       888           3,291         2,736
  Premium taxes     83         80       85           247         253
  Financing charges     78         75       75           230         227
  Amortization of finite life intangible assets     36         37       33           109         98
  Restructuring and acquisition expenses     7         14       10           28         25
Earnings before income taxes     862         795       875           2,650         2,514
Income taxes     84         86       135           394         464
Net earnings before non-controlling interests     778         709       740           2,256         2,050
Attributable to non-controlling interests     26         19       20           82         70
Net earnings     752         690       720           2,174         1,980
Preferred share dividends     32         31       33           95         91
Net earnings - common shareholders $   720     $   659   $   687           $ 2,079     $   1,889
                                               
Earnings per common share                                              
  Basic $   0.724     $   0.661   $   0.687           $ 2.086     $   1.891
  Diluted $   0.722     $   0.659   $   0.686           $ 2.081     $   1.889
                                               
CONSOLIDATED BALANCE SHEETS (unaudited)
(in Canadian $ millions)
                         
      September 30   December 31
      2015   2014
Assets          
Cash and cash equivalents     $ 3,713     $ 2,498
Bonds     112,259     103,168
Mortgage loans     21,704     20,546
Stocks     7,919     7,820
Investment properties     5,224     4,613
Loans to policyholders     8,574     7,711
      159,393     146,356
Funds held by ceding insurers     14,366     12,154
Goodwill     5,908     5,855
Intangible assets     3,953     3,625
Derivative financial instruments     494     652
Owner occupied properties     646     619
Fixed assets     279     228
Reinsurance assets     5,572     5,151
Premiums in course of collection, accounts and interest
  receivable 		    3,663     3,056
Other assets        2,636     2,368
Current income taxes     114     48
Deferred tax assets     1,888     1,631
Investments on account of segregated fund policyholders     191,023     174,966
Total assets     $ 389,935     $ 356,709
           
Liabilities          
Insurance contract liabilities     $ 157,451     $ 145,198
Investment contract liabilities     875     857
Debentures and other debt instruments     5,283     5,355
Funds held under reinsurance contracts     346     313
Derivative financial instruments     2,485     1,195
Accounts payable     2,188     1,480
Other liabilities                                  3,357     3,099
Current income taxes     559     737
Deferred tax liabilities     1,672     1,450
Capital trust debentures     162     162
Investment and insurance contracts on account of
  segregated fund policyholders 		    191,023     174,966
Total liabilities     365,401     334,812
           
Equity          
Non-controlling interests          
   Participating account surplus in subsidiaries     2,569     2,480
   Non-controlling interests in subsidiaries     187     163
Shareholders' equity          
   Share capital          
        Preferred shares     2,514     2,514
        Common shares     7,143     7,102
   Accumulated surplus     10,069     9,134
   Accumulated other comprehensive income     1,929     378
   Contributed surplus     123     126
Total equity     24,534     21,897
Total liabilities and equity     $ 389,935     $ 356,709
                 
                 
Segmented Information (unaudited)
Consolidated Net Earnings
 
For the three months ended September 30, 2015
  Canada United
States 		Europe Lifeco
  Corporate 		Total
Income          
Total net premiums $ 2,774   $ 1,076   $ 2,041   $ —   $ 5,891
Net investment income          
  Regular net investment income 599   420   523   4   1,546
  Changes in fair value through profit or loss (546)   122   342   —   (82)
Total net investment income 53   542   865   4   1,464
Fee and other income 366   591   284   —   1,241
  3,193   2,209   3,190   4   8,596
           
Benefits and expenses          
  Paid or credited to policyholders 1,967   1,390   2,476   —   5,833
  Other (1) 786   641   349   4   1,780
  Financing charges 29   36   13   —   78
  Amortization of finite life intangible assets 14   17   5   —   36
  Restructuring and acquisition expenses —   4   3   —   7
Earnings before income taxes 397   121   344   —   862
Income taxes (recovery) 45   19   24   (4)   84
Net earnings before non-controlling interests   352   102   320   4   778
Non-controlling interests 22   4   —   —   26
Net earnings 330   98   320   4   752
Preferred share dividends 26   —   6   —   32
Net earnings before capital allocation 304   98   314   4   720
Impact of capital allocation 22   (2)   (18)   (2)   —
Net earnings - common shareholders $ 326   $ 96   $ 296   $ 2   $ 720
                             
(1) Includes commissions, operating and administrative expenses and premium taxes.
   
   
For the three months ended September 30, 2014
  Canada United
States 		Europe Lifeco
  Corporate 		Total
Income          
  Total net premiums $ 2,655   $ 1,028   $ 1,007   $ —   $ 4,690
  Net investment income          
    Regular net investment income 629   340   511   (1)   1,479
    Changes in fair value through profit or loss 166   (58)   1,082   —   1,190
  Total net investment income 795   282   1,593   (1)   2,669
  Fee and other income 360   443   289   —   1,092
  3,810   1,753   2,889   (1)   8,451
           
Benefits and expenses          
  Paid or credited to policyholders 2,617   1,079   2,270   —   5,966
  Other (1) 726   466   297   3   1,492
  Financing charges 29   35   11   —   75
  Amortization of finite life intangible assets 15   13   5   —   33
  Restructuring and acquisition expenses —   3   7   —   10
Earnings (loss) before income taxes 423   157   299   (4)   875
Income taxes 77   45   13   —   135
Net earnings (loss) before non-controlling interests   346   112   286   (4)   740
Non-controlling interests 18   1   1   —   20
Net earnings (loss) 328   111   285   (4)   720
Preferred share dividends 23   —   6   4   33
Net earnings (loss) before capital allocation 305   111   279   (8)   687
Impact of capital allocation 25   (4)   (20) (1)   —
Net earnings (loss) - common shareholders $ 330   $ 107   $ 259   $ (9)   $ 687
(1)  Includes commissions, operating and administrative expenses and premium taxes.
   
   
For the nine months ended September 30, 2015
  Canada United
States 		Europe   Lifeco
Corporate 		Total
Income          
  Total net premiums $ 8,280   $ 2,710   $ 7,349   $ —   $ 18,339
  Net investment income          
    Regular net investment income 1,858   1,205   1,534   4   4,601
    Changes in fair value through profit or loss (351)   (212)   (603)   —   (1,166)
  Total net investment income 1,507   993   931   4   3,435
  Fee and other income 1,090   1,741   894   —   3,725
  10,877   5,444   9,174   4   25,499
           
Benefits and expenses          
  Paid or credited to policyholders 7,192   3,054   7,064   —   17,310
  Other (1) 2,324   1,841   995   12   5,172
  Financing charges 87   107   35   1   230
  Amortization of finite life intangible assets 43   52   14   —   109
  Restructuring and acquisition expenses —   8   20   —   28
Earnings (loss) before income taxes 1,231   382   1,046   (9)   2,650
Income taxes (recovery) 215   85   100   (6)   394
Net earnings (loss) before non-controlling interests   1,016   297   946   (3)   2,256
Non-controlling interests 71   8   3   —   82
Net earnings (loss) 945   289   943   (3)   2,174
Preferred share dividends 78   —   17   —   95
Net earnings (loss) before capital allocation 867   289   926   (3)   2,079
Impact of capital allocation 66   (5)   (55)   (6)   —
Net earnings (loss) - common shareholders $ 933   $ 284   $ 871   $ (9)   $ 2,079
(1)  Includes commissions, operating and administrative expenses and premium taxes.
   
   
For the nine months ended September 30, 2014
  Canada United
States 		Europe   Lifeco
Corporate 		Total
Income          
  Total net premiums $ 8,044   $ 2,672   $ 5,005   $ —   $ 15,721
  Net investment income          
    Regular net investment income 1,910   1,049   1,538   (3)   4,494
    Changes in fair value through profit or loss 1,893   567   2,522   —   4,982
  Total net investment income 3,803   1,616   4,060   (3)   9,476
  Fee and other income 1,060   1,298   903   —   3,261
  12,907   5,586   9,968   (3)   28,458
           
Benefits and expenses          
  Paid or credited to policyholders 9,349   3,672   8,014   —   21,035
  Other (1) 2,169   1,438   939   13   4,559
  Financing charges 87   105   35   —   227
  Amortization of finite life intangible assets 41   42   15   —   98
  Restructuring and acquisition expenses —   3   22   —   25
Earnings (loss) before income taxes 1,261   326   943   (16)   2,514
Income taxes (recovery) 272   93   102   (3)   464
Net earnings (loss) before non-controlling interests   989   233   841   (13)   2,050
Non-controlling interests 64   4   2   —   70
Net earnings (loss) 925   229   839   (13)   1,980
Preferred share dividends 70   —   17   4   91
Net earnings (loss) before capital allocation 855   229   822   (17)   1,889
Impact of capital allocation 73   (12)   (58)   (3)   —
Net earnings (loss) - common shareholders $ 928   $ 217   $ 764   $ (20)   $ 1,889
(1) Includes commissions, operating and administrative expenses and premium taxes.
   

 

 

 

 

SOURCE Great-West Lifeco Inc.

Marlene Klassen, APR
Assistant Vice-President, Communication Services
204-946-7705

Organization Profile

Great-West Lifeco Inc.

Great-West Lifeco is an international financial services holding company with interests in life insurance, health insurance, retirement and investment services, asset management and reinsurance businesses. We operate in Canada, the United States and Europe under the brands...