Great-West Lifeco reports fourth quarter 2016 results, increases dividend by 6%

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. 9, 2017 /CNW/ - Great-West Lifeco Inc. (Lifeco or the Company) has reported net earnings attributable to common shareholders (net earnings) of $676 million or $0.686 per common share for the three months ended December 31, 2016 compared to $683 million or $0.688 per common share for the same period in 2015.  Included in Lifeco's net earnings for the fourth quarter of 2016 are restructuring costs related to a realignment of Putnam Investments, LLC (Putnam) of $20 million.  Excluding these costs, Lifeco's net earnings for the fourth quarter of 2016 were $696 million or $0.707 per common share.

For the twelve months ended December 31, 2016, net earnings were $2,641 million compared to $2,762 million for the same period in 2015.  This represents $2.668 per common share for the twelve months ended December 31, 2016 compared to $2.774 per common share for the same period in 2015. 

Consolidated assets under administration at December 31, 2016 were over $1.2 trillion, an increase of $36 billion from December 31, 2015.

Highlights – In Quarter

  • The Company declared a quarterly common dividend of $0.3670 per common share payable March 31, 2017, a 6% increase from the previous quarter.
  • Lifeco sales in the fourth quarter of 2016 were $26.7 billion:
    • Canada sales were $3.9 billion, up 11%, primarily due to Individual Life Insurance sales up 161% from the fourth quarter of 2015. Group Insurance led the market in sales both in the quarter and for the full year 2016.
    • Europe sales were $4.4 billion, up 13%, primarily due to strong fund management sales in Ireland partially offset by lower wealth management sales in the U.K. and the negative impact of currency movement.
    • Great-West Financial sales were US$5.5 billion, down 65%, primarily due to fewer Empower Retirement large plan sales reflecting the variability of the large plan market.
    • Putnam gross sales were US$8.4 billion, up 3% overall, primarily due to strong mutual fund sales. Mutual fund sales increased 9%, while institutional sales decreased 3%.
  • The Company's capital position remained very strong. The Great-West Life Assurance Company reported a Minimum Continuing Capital Surplus Requirements (MCCSR) ratio of 240% at December 31, 2016.
  • Lifeco reported a ROE of 13.8%.
  • Lifeco returned to the European capital markets in December 2016 with the issuance of 500 million euro-denominated 10-year bonds. The bonds pay an annual coupon of 1.75% and are listed on the Irish Stock Exchange.
  • During the fourth quarter of 2016, Putnam announced that it was undertaking US$65 million in expense reductions and was realigning its resources to better position itself for current and future opportunities. For the three months ended December 31, 2016, the Company incurred restructuring costs relating to these initiatives that reduced net earnings by $20 million.

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), The Canada Life Assurance Company (Canada Life) and Irish Life Group Limited (Irish Life); Great-West Life & Annuity Insurance Company (Great-West Financial) and Putnam Investments, LLC (Putnam), together with Lifeco's Corporate operating results.  For reporting purposes, the consolidated operating results are grouped into four reportable segments - Canada, United States, Europe and Lifeco Corporate - reflecting geographic lines as well as the management and corporate structure of the companies.

CANADA
Net earnings for the fourth quarter of 2016 were $326 million compared to $262 million in the fourth quarter of 2015.  For the twelve months ended December 31, 2016, net earnings were $1,218 million compared to $1,195 million for the same period in 2015.

Total sales in the fourth quarter of 2016 of $3.9 billion increased from $3.5 billion in the fourth quarter of 2015.  This reflects very strong Individual Life Insurance sales up 161% over fourth quarter 2015, strong Group Insurance sales up 33% over fourth quarter 2015 and solid Wealth Group Retirement sales up 29% over the prior year.  Total sales for the twelve months ended December 31, 2016 were $12.9 billion compared to $12.6 billion for the same period in 2015.

Total Canada segment assets under administration at December 31, 2016 were $175 billion compared to $166 billion at December 31, 2015.

UNITED STATES
Net earnings for the fourth quarter of 2016 were $55 million compared to $125 million in the fourth quarter of 2015.  Net earnings for the fourth quarter of 2016 reflect Great-West Financial net earnings of $78 million and a net loss for Putnam of $3 million, which excludes restructuring costs of $20 million.  For the twelve months ended December 31, 2016, net earnings were $249 million compared to $409 million for the same period in 2015.

Great-West Financial sales in the fourth quarter of 2016 were US$5.5 billion, down from US$15.5 billion in the fourth quarter of 2015, primarily due to fewer Empower Retirement large plan sales.  Sales for the twelve months ended December 31, 2016 were US$39.3 billion compared to US$43.2 billion in 2015.

Putnam assets under management as at December 31, 2016 were US$152.1 billion compared to US$148.4 billion a year ago, an increase of 3%, primarily due to the cumulative impact of positive markets and net asset inflows during the year from the institutional business. Net asset outflows for the fourth quarter of 2016 were US$1.5 billion compared to US$1.2 billion for the same quarter in 2015. 

Total United States segment assets under administration at December 31, 2016 were $841 billion compared to $808 billion at December 31, 2015.

EUROPE
Net earnings for the fourth quarter of 2016 were $307 million, compared to $303 million in the fourth quarter of 2015.  While the Company's domestic businesses continue to perform well following the U.K.'s vote to leave the European Union in June of 2016, net earnings were negatively impacted by $30 million as a result of a decrease in the exchange rate of the British pound to the Canadian dollar compared to the same quarter last year. For the twelve months ended December 31, 2016, net earnings were $1,200 million compared to $1,174 million for the same period in 2015.

Insurance & Annuities sales for the fourth quarter of 2016 were $4.4 billion, compared to $3.9 billion a year ago.  The increase primarily reflects higher fund management sales in Ireland, partially offset by lower wealth management sales in the U.K. and the impact of currency movement driven by the weakening of the British pound compared to the Canadian dollar.  Sales for the twelve months ended December 31, 2016 were $19.2 billion compared to $19.5 billion for the same period in 2015, which included two large institutional sales in 2015. Excluding the impact of these two large sales, sales increased by $4.8 billion primarily due to higher fund management sales in Ireland and higher sales of payout annuities in the U.K., partially offset by the impact of currency movement.

Total Europe segment assets under administration at December 31, 2016 were $232 billion compared to $238 billion at December 31, 2015.

LIFECO CORPORATE
Lifeco Corporate segment's net loss was $12 million in the fourth quarter of 2016 compared to $7 million in the fourth quarter of 2015.  For the twelve months ended December 31, 2016, the net loss was $26 million compared to a net loss of $16 million for the same period in 2015.

QUARTERLY DIVIDENDS

At its meeting today, the Board of Directors approved a quarterly dividend of $0.3670 per share on the common shares of the Company payable March 31, 2017 to shareholders of record at the close of business March 3, 2017.

In addition, the Directors approved quarterly dividends on Lifeco's preferred shares, as follows:

First Preferred Shares

Record Date

Payment Date

Amount, per share

Series F

March 3, 2017

March 31, 2017

$0.36875

Series G

March 3, 2017

March 31, 2017

$0.3250

Series H

March 3, 2017

March 31, 2017

$0.30313

Series I

March 3, 2017

March 31, 2017

$0.28125

Series L

March 3, 2017

March 31, 2017

$0.353125

Series M

March 3, 2017

March 31, 2017

$0.3625

Series N

March 3, 2017

March 31, 2017

$0.1360

Series O

March 3, 2017

March 31, 2017

$0.111513

Series P

March 3, 2017

March 31, 2017

$0.3375

Series Q

March 3, 2017

March 31, 2017

$0.321875

Series R

March 3, 2017

March 31, 2017

$0.3000

Series S

March 3, 2017

March 31, 2017

$0.328125

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.  Lifeco has operations in Canada, the United States, Europe and Asia through Great-West Life, London Life, Canada Life, Irish Life Group Limited, Great-West Financial and Putnam Investments.  Lifeco and its companies have over $1.2 trillion in consolidated assets under administration and are members of the Power Financial Corporation group of companies.  To learn more, visit www.greatwestlifeco.com.         

Basis of presentation
The consolidated financial statements of Lifeco, which are the basis for data presented in this release, have been prepared in accordance with International Financial Reporting Standards (IFRS) unless otherwise noted.

Cautionary note regarding Forward-Looking Information
This release may contain forward-looking statements.  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 other similar expressions or negative versions thereof.  These statements may include, without limitation, statements about the Company's operations, business, financial condition, expected 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.  Forward-looking statements are based on expectations, forecasts, predictions, projections and conclusions 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 the reader is cautioned that 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 customer behaviour, the Company's reputation, market prices for products provided, sales levels, premium income, fee income, expense levels, mortality experience, morbidity experience, policy lapse rates, reinsurance arrangements, liquidity requirements, capital requirements, credit ratings, taxes, inflation, interest and foreign exchange rates, investment values, hedging activities, global equity and capital markets, business competition and other general economic, political and market factors in North America and internationally.  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 customer responses to new products, impairments of goodwill and other intangible assets, the Company's ability to execute strategic plans and changes to strategic plans, technological changes, 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, catastrophic events, continuity and availability of personnel and third party service providers, the Company's ability to complete strategic transactions and integrate acquisitions and unplanned material changes to the Company's facilities, customer and employee relations or credit arrangements.  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 2016 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, uncertainties and potential events 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.

Lifeco's fourth quarter conference call and audio webcast will be held February 9, 2017 at 3:30 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 February 9, 2017 to February 16, 2017, and can be accessed by calling 1-800-408-3053 or 905-694-9451 in Toronto (passcode: 7905788#). The archived webcast will be available on www.greatwestlifeco.com from February 9, 2017 to February 8, 2018.

Additional information relating to Lifeco, including the 2016 audited consolidated financial statements, Management's Discussion and Analysis (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
2016


September 30
2016


December 31
2015


December 31
2016


December 31
2015

Premiums and deposits:
















Net premium income (Life insurance,

















guaranteed annuities and insured health

















products)

$

8,905


$

8,334


$

6,162


$

31,125


$

24,501


Policyholder deposits (segregated funds):















Individual products

3,399


3,211


3,814


13,512


12,983



Group products

1,875


1,875


2,001


7,846


8,609


Self-funded premium equivalents












(Administrative services only contracts)(1)

691


655


665


2,751


2,625


Proprietary mutual funds and institutional












deposits(1)

15,169


15,187


15,480


62,232


56,257

Total premiums and deposits(1)

30,039


29,262


28,122


117,466


104,975















Fee and other income

1,345


1,271


1,333


5,101


5,058

Paid or credited to policyholders(2)

4,373


10,589


5,532


34,675


22,842














Earnings













Net earnings - common shareholders

$

676


$

674


$

683


$

2,641


$

2,762


Per common share
















Basic earnings

0.686


0.682


0.688


2.668


2.774



Dividends paid

0.346


0.346


0.326


1.384


1.304



Book value(3)

19.76


19.18


20.06




















Return on common shareholders' equity(4)















Net earnings

13.8%


13.8%


14.7%




















Total assets

$

399,912


$

401,489


$

399,935








Proprietary mutual funds and institutional














net assets(5)

259,215


256,544


252,480







Total assets under management(5)

659,127


658,033


652,415








Other assets under administration(6)

589,291


570,475


560,102







Total assets under administration

$

1,248,418


$

1,228,508


$

1,212,517







Total equity

$

25,008


$

24,256


$

25,260






















(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)   

Paid or credited to policyholders includes the impact of changes in fair values of assets supporting insurance contract liabilities.

(3)    

Certain comparative figures have been adjusted as described in note 33 to the Company's December 31, 2016 consolidated financial statements.

(4)    

Return on common shareholders' equity is detailed within the "Capital Allocation Methodology" section of the Company's December 31, 2016 Management's Discussion and Analysis.

(5)   

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 of the investment policies.

(6)   

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 December 31


For the years

ended December 31


2016


2015


2016


2015









Income









Premium income










Gross premiums written

$

9,989


$

7,117


$

35,050


$

28,129



Ceded premiums

(1,084)


(955)


(3,925)


(3,628)


Total net premiums

8,905


6,162


31,125


24,501


Net investment income










Regular net investment income

1,507


1,670


6,252


6,271



Changes in fair value through profit or loss

(3,943)


(844)


3,903


(2,010)


Total net investment income

(2,436)


826


10,155


4,261


Fee and other income

1,345


1,333


5,101


5,058


7,814


8,321


46,381


33,820

Benefits and expenses









Policyholder benefits










Gross

8,078


6,060


28,315


22,553



Ceded

(585)


(546)


(2,103)


(2,000)


Total net policyholder benefits

7,493


5,514


26,212


20,553


Policyholder dividends and experience refunds

348


321


1,502


1,477


Changes in insurance and investment contract liabilities

(3,468)


(303)


6,961


812


Total paid or credited to policyholders

4,373


5,532


34,675


22,842










Commissions

853


584


2,602


2,218


Operating and administrative expenses

1,250


1,175


4,799


4,466


Premium taxes

112


92


411


339


Financing charges

75


73


302


303


Amortization of finite life intangible assets

44


37


177


146


Restructuring and acquisition expenses

35


7


63


35

Earnings before income taxes

1,072


821


3,352


3,471

Income taxes

188


66


396


460

Net earnings before non-controlling interests

884


755


2,956


3,011

Attributable to non-controlling interests

177


41


192


123

Net earnings

707


714


2,764


2,888

Preferred share dividends

31


31


123


126

Net earnings - common shareholders

$

676


$

683


$

2,641


$

2,762









Earnings per common share









Basic

$

0.686


$

0.688


$

2.668


$

2.774


Diluted

$

0.685


$

0.686


$

2.663


$

2.768

CONSOLIDATED BALANCE SHEETS (unaudited)
(in Canadian $ millions)




December 31


2016


2015(1)

Assets




Cash and cash equivalents

$

3,259


$

2,813

Bonds

116,773


114,943

Mortgage loans

21,651


22,021

Stocks

8,665


7,873

Investment properties

4,340


5,237

Loans to policyholders

8,467


8,694


163,155


161,581

Funds held by ceding insurers

10,781


15,512

Goodwill

5,977


5,913

Intangible assets

3,972


4,036

Derivative financial instruments

528


461

Owner occupied properties

649


653

Fixed assets

304


298

Other assets   

2,263


2,643

Premiums in course of collection, accounts and interest receivable

4,311


3,553

Reinsurance assets

5,627


5,131

Current income taxes

97


69

Deferred tax assets

1,845


1,891

Investments on account of segregated fund policyholders

200,403


198,194

Total assets

$

399,912


$

399,935





Liabilities




Insurance contract liabilities

$

155,940


$

158,492

Investment contract liabilities

2,009


2,253

Debentures and other debt instruments

5,980


5,395

Capital trust securities

161


161

Funds held under reinsurance contracts

320


356

Derivative financial instruments

2,012


2,624

Accounts payable

2,049


1,755

Other liabilities                             

3,836


3,367

Current income taxes

549


492

Deferred tax liabilities

1,645


1,586

Investment and insurance contracts on account of segregated fund policyholders

200,403


198,194

Total liabilities

374,904


374,675





Equity




Non-controlling interests





Participating account surplus in subsidiaries



2,782



2,626


Non-controlling interests in subsidiaries


224



195

Shareholders' equity






Share capital








Preferred shares



2,514


2,514



Common shares



7,130


7,156


Accumulated surplus


11,465



10,416


Accumulated other comprehensive income


746



2,218


Contributed surplus



147


135

Total equity


25,008


25,260

Total liabilities and equity

$

399,912


$

399,935

(1)

Certain comparative figures have been reclassified or adjusted as described in note 33 to the Company's December 31, 2016 consolidated

financial statements.

Segmented Information (unaudited)

Consolidated Net Earnings


For the three months ended December 31, 2016


Canada


United
States


Europe


Lifeco
Corporate


Total

Income











Total net premiums

$

3,597


$

1,164


$

4,144


$


$

8,905


Net investment income












Regular net investment income

636


440


433


(2)


1,507



Changes in fair value through profit or loss

(1,364)


(1,008)


(1,571)



(3,943)


Total net investment income

(728)


(568)


(1,138)


(2)


(2,436)


Fee and other income

386


619


340



1,345


3,255


1,215


3,346


(2)


7,814











Benefits and expenses











Paid or credited to policyholders

1,444


387


2,542



4,373


Other (1)

1,110


691


404


10


2,215


Financing charges

29


34


11


1


75


Amortization of finite life intangible assets

17


21


6



44


Restructuring and acquisition expenses


35




35

Earnings (loss) before income taxes

655


47


383


(13)


1,072

Income taxes (recovery)

149


(9)


51


(3)


188

Net earnings (loss) before non-controlling











interests

506


56


332


(10)


884

Non-controlling interests

178



(1)



177

Net earnings (loss)

328


56


333


(10)


707

Preferred share dividends

26



5



31

Net earnings (loss) before capital allocation

302


56


328


(10)


676

Impact of capital allocation

24


(1)


(21)


(2)


Net earnings (loss) - common shareholders

$

326


$

55


$

307


$

(12)


$

676


(1) Includes commissions, operating and administrative expenses and premium taxes.



For the three months ended December 31, 2015


Canada


United
States


Europe


Lifeco
Corporate


Total

Income











Total net premiums

$

3,023


$

1,148


$

1,991


$


$

6,162


Net investment income












Regular net investment income

654


471


547


(2)


1,670



Changes in fair value through profit or loss

(7)


(320)


(517)



(844)


Total net investment income

647


151


30


(2)


826


Fee and other income

369


637


327



1,333


4,039


1,936


2,348


(2)


8,321











Benefits and expenses











Paid or credited to policyholders

2,799


1,084


1,649



5,532


Other (1)

819


674


354


4


1,851


Financing charges

29


37


7



73


Amortization of finite life intangible assets

16


17


4



37


Restructuring and acquisition expenses


4


3



7

Earnings (loss) before income taxes

376


120


331


(6)


821

Income taxes (recovery)

70


(8)


5


(1)


66

Net earnings (loss) before non-controlling











interests

306


128


326


(5)


755

Non-controlling interests

40


2


(1)



41

Net earnings (loss)

266


126


327


(5)


714

Preferred share dividends

25



6



31

Net earnings (loss) before capital allocation

241


126


321


(5)


683

Impact of capital allocation

21


(1)


(18)


(2)


Net earnings (loss) - common shareholders

$

262


$

125


$

303


$

(7)


$

683


(1) Includes commissions, operating and administrative expenses and premium taxes.



For the twelve months ended December 31, 2016


Canada


United
States


Europe


Lifeco
Corporate


Total

Income











Total net premiums

$

12,471


$

5,304


$

13,350


$


$

31,125


Net investment income












Regular net investment income

2,668


1,741


1,841


2


6,252



Changes in fair value through profit or loss

692


92


3,119



3,903


Total net investment income

3,360


1,833


4,960


2


10,155


Fee and other income

1,494


2,311


1,296



5,101


17,325


9,448


19,606


2


46,381











Benefits and expenses











Paid or credited to policyholders

11,862


6,271


16,542



34,675


Other (1)

3,599


2,678


1,511


24


7,812


Financing charges

115


140


45


2


302


Amortization of finite life intangible assets

66


82


29



177


Restructuring and acquisition expenses


46


17



63

Earnings (loss) before income taxes

1,683


231


1,462


(24)


3,352

Income taxes (recovery)

268


(27)


161


(6)


396

Net earnings (loss) before non-controlling











interests

1,415


258


1,301


(18)


2,956

Non-controlling interests

191


2


(1)



192

Net earnings (loss)

1,224


256


1,302


(18)


2,764

Preferred share dividends

104



19



123

Net earnings (loss) before capital allocation

1,120


256


1,283


(18)


2,641

Impact of capital allocation

98


(7)


(83)


(8)


Net earnings (loss) - common shareholders

$

1,218


$

249


$

1,200


$

(26)


$

2,641


(1) Includes commissions, operating and administrative expenses and premium taxes.



For the twelve months ended December 31, 2015


Canada


United
States


Europe


Lifeco
Corporate


Total

Income











Total net premiums

$

11,303


$

3,858


$

9,340


$


$

24,501


Net investment income












Regular net investment income

2,512


1,676


2,081


2


6,271



Changes in fair value through profit or loss

(358)


(532)


(1,120)



(2,010)


Total net investment income

2,154


1,144


961


2


4,261


Fee and other income

1,459


2,378


1,221



5,058


14,916


7,380


11,522


2


33,820











Benefits and expenses











Paid or credited to policyholders

9,991


4,138


8,713



22,842


Other (1)

3,143


2,515


1,349


16


7,023


Financing charges

116


144


42


1


303


Amortization of finite life intangible assets

59


69


18



146


Restructuring and acquisition expenses


12


23



35

Earnings (loss) before income taxes

1,607


502


1,377


(15)


3,471

Income taxes (recovery)

285


77


105


(7)


460

Net earnings (loss) before non-controlling











interests

1,322


425


1,272


(8)


3,011

Non-controlling interests

111


10


2



123

Net earnings (loss)

1,211


415


1,270


(8)


2,888

Preferred share dividends

103



23



126

Net earnings (loss) before capital allocation

1,108


415


1,247


(8)


2,762

Impact of capital allocation

87


(6)


(73)


(8)


Net earnings (loss) - common shareholders

$

1,195


$

409


$

1,174


$

(16)


$

2,762
















(1) Includes commissions, operating and administrative expenses and premium taxes.



SOURCE Great-West Lifeco Inc.

For further information: Media Contact: Marlene Klassen, APR, 204-946-7705, Email: marlene.klassen@gwl.ca; Investor Relations Contact: Wendi Thiessen, 204-946-7452, Email: wendi.thiessen@gwl.ca

RELATED LINKS
www.greatwestlifeco.com

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