Great-West Lifeco reports third quarter 2016 results

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, Nov. 3, 2016 /CNW/ - Great-West Lifeco Inc. (Lifeco or the Company) has reported net earnings attributable to common shareholders (net earnings) of $674 million or $0.682 per common share for the three months ended September 30, 2016 compared to $720 million or $0.724 per common share for the same period in 2015.                 

For the nine months ended September 30, 2016, net earnings were $1,965 million, compared to $2,079 million for the same period in 2015.  This represents $1.982 per common share for the nine months ended September 30, 2016, compared to $2.086 per common share for the same period in 2015.

Consolidated assets under administration at September 30, 2016 were over $1.2 trillion, an increase of $16.0 billion from December 31, 2015.

Highlights – In Quarter

  • Lifeco premiums and deposits in the third quarter of 2016 of $29.3 billion were comparable to the same quarter in 2015:
    • Canada premiums and deposits were $6.1 billion, up 7%, primarily due to strong Individual Insurance and Single Premium Group Annuity sales.
    • Europe premiums and deposits were $8.3 billion, down 16%, primarily due to a $3.5 billion sale to an institutional client in the third quarter of 2015. Excluding this impact, premiums and deposits increased $2.0 billion primarily due to an increase in premiums from reinsurance agreements, higher fund management sales in Ireland and higher payout annuity sales in the U.K.
    • Great-West Financial premiums and deposits were US$2.7 billion, up 3%, primarily as a result of higher premiums due to sales from the executive benefits line of business. Empower Retirement sales were down in the third quarter compared to 2015 driven by lower very large plan sales.
    • Putnam gross sales were US$8.7 billion, up 11% overall. Institutional sales increased 36% as the pipeline continues to remain strong, while mutual fund sales decreased 11%, reflective of the decline in industry segments where Putnam operates.
  • Lifeco's capital position remained very strong. The Great-West Life Assurance Company reported a Minimum Continuing Capital Surplus Requirements (MCCSR) ratio of 227% at September 30, 2016.
    • Lifeco reported a ROE of 13.8%.
    • Lifeco declared a quarterly common dividend of $0.3460 per common share payable December 30, 2016.
    • Lifeco completed its previously announced Irish health insurance acquisitions and will operate its new business under the Irish Life Health brand. The Company has set annual cost savings targets of €16 million pre-tax to be achieved through operating efficiencies from the combination of the businesses. Integration activities, with an expected cost of €16 million pre-tax, are anticipated to be completed in the next 18 to 24 months.

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 attributable to common shareholders for the third quarter of 2016 were $289 million compared to $326 million in the third quarter of 2015.  For the nine months ended September 30, 2016, net earnings attributable to common shareholders were $892 million compared to $933 million for the same period in 2015.

Total sales in the third quarter of 2016 of $3.1 billion increased from $2.9 billion in the third quarter of 2015, reflecting higher Participating Life and Universal Life product sales as well as very strong Single Premium Group Annuity sales. Total sales for the nine months ended September 30, 2016 of $9.1 billion were comparable to the same period in 2015.

Total Canada segment assets under administration at September 30, 2016 were $174 billion compared to $166 billion at December 31, 2015.

UNITED STATES
Net earnings attributable to common shareholders for the third quarter of 2016 were $78 million, reflecting Great-West Financial net earnings of $84 million and a net loss of $6 million for Putnam, compared to net earnings of $96 million in the third quarter of 2015.  For the nine months ended September 30, 2016, net earnings attributable to common shareholders were $194 million compared to $284 million for the same period in 2015.

Great-West Financial sales in the third quarter of 2016 were US$8.9 billion, down from US$11.9 billion in the third quarter of 2015, primarily due to lower Empower Retirement very large plan sales.  Sales for the nine months ended September 30, 2016 were US$33.9 billion, up from US$27.7 billion in 2015.

Putnam assets under management at September 30, 2016 were US$153.8 billion compared to US$146.6 billion at September 30, 2015, an increase of 5%, primarily due to the cumulative impact of positive markets and net asset inflows from the institutional business.  Net asset inflows for the third quarter of 2016 were US$0.5 billion compared to US$0.1 billion for the same quarter in 2015, as in-quarter institutional net asset inflows of US$2.1 billion were partially offset by mutual fund net asset outflows of US$1.6 billion.

Total United States segment assets under administration at September 30, 2016 were $818 billion compared to $808 billion at December 31, 2015.

EUROPE
Market uncertainty and volatility continues following the U.K.'s June 23, 2016 vote to leave the European Union, most notably resulting in a weaker British pound.  The Company remains committed to its operations in the U.K. which are strong and are primarily domestic businesses with well-diversified investment portfolios.  Customer needs for insurance, wealth and annuity products remain as before and the Company is well placed to continue to serve these customers. 

Net earnings attributable to common shareholders for the third quarter of 2016 were $313 million, up from $296 million in the third quarter of 2015.  While the Company's U.K. domestic businesses continue to perform well, net earnings were negatively impacted by $45 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 nine months ended September 30, 2016, net earnings attributable to common shareholders were $893 million up from $871 million for the same period in 2015.

Insurance & Annuities sales for the third quarter of 2016 were $4.6 billion, down from $7.7 billion in the third quarter of 2015, primarily due to the $3.5 billion sale to an institutional client in the third quarter of 2015. Excluding this item, sales increased $0.4 billion primarily due to higher fund management sales in Ireland and payout annuity sales in the U.K., partially offset by the impact of currency movement driven by the weakening of the British pound compared to the Canadian dollar. Sales for the nine months ended September 30, 2016 were $14.8 billion compared to $15.6 billion for the same period in 2015.

Total Europe segment assets under administration at September 30, 2016 were $237 billion compared to $238 billion at December 31, 2015.

LIFECO CORPORATE
Lifeco Corporate segment's net loss attributable to common shareholders was $6 million in the third quarter of 2016 compared to net earnings of $2 million in the third quarter of 2015.  For the nine months ended September 30, 2016, the net loss was $14 million compared to a net loss of $9 million for the same period in 2015.

QUARTERLY DIVIDENDS

At its meeting today, the Board of Directors approved a quarterly dividend of $0.3460 per share on the common shares of Lifeco payable December 30, 2016 to shareholders of record at the close of business December 2, 2016.

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

December 2, 2016

December 30, 2016

$0.36875

Series G

December 2, 2016

December 30, 2016

$0.3250

Series H

December 2, 2016

December 30, 2016

$0.30313

Series I

December 2, 2016

December 30, 2016

$0.28125

Series L

December 2, 2016

December 30, 2016

$0.353125

Series M

December 2, 2016

December 30, 2016

$0.3625

Series N

December 2, 2016

December 30, 2016

$0.1360

Series O

December 2, 2016

December 30, 2016

$0.114180

Series P

December 2, 2016

December 30, 2016

$0.3375

Series Q

December 2, 2016

December 30, 2016

$0.321875

Series R

December 2, 2016

December 30, 2016

$0.3000

Series S

December 2, 2016

December 30, 2016

$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 have been prepared in accordance with International Financial Reporting Standards (IFRS) and are the basis for the figures presented in this release, 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 Lifeco's operations, business, financial condition, expected financial performance (including revenues, earnings or growth rates), ongoing business strategies or prospects, and possible future actions by Lifeco, 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 Lifeco, 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 Lifeco's operations will continue substantially in their current state, including, without limitation, with respect to customer behaviour, Lifeco'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 Lifeco 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, Lifeco'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, Lifeco's ability to complete strategic transactions and integrate acquisitions and unplanned material changes to Lifeco'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 Lifeco's 2015 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, Lifeco 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.  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 third quarter conference call and audio webcast will be held November 3, 2016 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 November 3, 2016 to November 10, 2016, and can be accessed by calling 1-800-408-3053 or 905-694-9451 in Toronto (passcode: 6396358#). The archived webcast will be available on www.greatwestlifeco.com from November 3, 2016 to November 2, 2017.

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
2016

June 30

2016

September 30
2015


September 30
2016

September 30
2015

Premiums and deposits:








Net premium income (Life insurance,














guaranteed annuities and insured














health products)                                  

$

8,334

$

6,871

$

5,891


$

22,220

$

18,339


Policyholder deposits (segregated funds):









Individual products

3,211

3,213

3,157


10,113

9,169



Group products

1,875

1,858

2,738


5,971

6,608


Self-funded premium equivalents









(Administrative services only               









contracts)(1)

655

707

639


2,060

1,960


Proprietary mutual funds and institutional 









deposits(1)

15,187

15,522

16,807


47,063

40,777

Total premiums and deposits(1)

29,262

28,171

29,232


87,427

76,853








Fee and other income

1,271

1,231

1,241


3,756

3,725

Paid or credited to policyholders(2)

10,589

10,035

5,833


30,302

17,310








Earnings







Net earnings - common shareholders

$

674

$

671

$

720


$

1,965

$

2,079


Per common share









Basic earnings

0.682

0.675

0.724


1.982

2.086



Dividends paid

0.346

0.346

0.326


1.038

0.978



Book value

19.18

19.02

19.38















Return on common shareholders' equity(3)








Net earnings

13.8%

14.0%

15.2%















Total assets

$

401,489

$

390,251

$

389,935





Proprietary mutual funds and institutional









net assets(4) 

256,544

243,688

239,050




Total assets under management(4)

658,033

633,939

628,985





Other assets under administration(5)

570,475

549,878

524,813




Total assets under administration

$

1,228,508

$

1,183,817

$

1,153,798




Total equity

$

24,256

$

24,201

$

24,534

















(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)

Return on common shareholders' equity is detailed within the "Capital Allocation Methodology" section of the Company's September 30, 2016 Management's Discussion and Analysis.

(4)

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.

(5)

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


2016

2016

2015


2016

2015








Income








Premium income









Gross premiums written

$

9,301

$

7,834

$

6,796


$

25,061

$

21,012



Ceded premiums

(967)

(963)

(905)


(2,841)

(2,673)


Total net premiums

8,334

6,871

5,891


22,220

18,339


Net investment income









Regular net investment income

1,496

1,576

1,546


4,745

4,601



Changes in fair value through profit or loss 

2,307

3,129

(82)


7,846

(1,166)


Total net investment income

3,803

4,705

1,464


12,591

3,435


Fee and other income

1,271

1,231

1,241


3,756

3,725




13,408


12,807


8,596



38,567


25,499

Benefits and expenses








Policyholder benefits









Gross

7,452

6,143

5,726


20,237

16,493



Ceded

(545)

(501)

(481)


(1,518)

(1,454)


Total net policyholder benefits

6,907

5,642

5,245


18,719

15,039


Policyholder dividends and experience









refunds

404

381

401


1,154

1,156


Changes in insurance and investment









contract liabilities 

3,278

4,012

187


10,429

1,115


Total paid or credited to policyholders

10,589

10,035

5,833


30,302

17,310









Commissions

584

599

565


1,749

1,634


Operating and administrative expenses

1,180

1,161

1,132


3,549

3,291


Premium taxes

109

98

83


299

247


Financing charges

74

75

78


227

230


Amortization of finite life intangible assets

43

44

36


133

109


Restructuring and acquisition expenses

19

5

7


28

28

Earnings before income taxes


810


790


862



2,280


2,650

Income taxes


108


76


84



208


394

Net earnings before non-controlling 













interests

702

714


778



2,072


2,256

Attributable to non-controlling interests


(3)


13


26



15


82

Net earnings


705


701


752



2,057


2,174

Preferred share dividends


31


30


32



92


95

Net earnings - common shareholders

$

674

$

671

$

720


$

1,965

$

2,079









Earnings per common share









Basic

$

0.682

$

0.675

$

0.724


$

1.982

$

2.086


Diluted

$

0.681

$

0.674

$

0.722


$

1.979

$

2.081

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





September 30

December 31


2016

2015 (1)

Assets



Cash and cash equivalents

$

3,060

$

2,813

Bonds

117,732

114,943

Mortgage loans

21,788

22,021

Stocks

8,847

7,873

Investment properties

4,448

5,237

Loans to policyholders

8,372

8,694


164,247

161,581

Funds held by ceding insurers

12,558

15,512

Goodwill

6,022

5,913

Intangible assets

3,887

4,036

Derivative financial instruments

625

461

Owner occupied properties

633

653

Fixed assets

312

298

Other assets   

2,481

2,643

Premiums in course of collection, accounts and interest receivable

4,313

3,553

Reinsurance assets

5,304

5,131

Current income taxes

113

69

Deferred tax assets

1,832

1,891

Investments on account of segregated fund policyholders

199,162

198,194

Total assets

$

401,489

$

399,935




Liabilities



Insurance contract liabilities

$

159,609

$

158,492

Investment contract liabilities

2,091

2,253

Debentures and other debt instruments

5,126

5,395

Capital trust securities

161

161

Funds held under reinsurance contracts

338

356

Derivative financial instruments

2,078

2,624

Accounts payable

2,525

1,755

Other liabilities                             

4,110

3,367

Current income taxes

550

492

Deferred tax liabilities

1,483

1,586

Investment and insurance contracts on account of segregated fund policyholders

199,162

198,194

Total liabilities

377,233

374,675




Equity



Non-controlling interests




Participating account surplus in subsidiaries

2,630

2,626


Non-controlling interests in subsidiaries


195

195

Shareholders' equity




Share capital






Preferred shares                                                                     


2,514

2,514



Common shares


7,120

7,156


Accumulated surplus


11,140

10,416


Accumulated other comprehensive income


519

2,218


Contributed surplus


138

135

Total equity

24,256

25,260

Total liabilities and equity

$

401,489

$

399,935



(1)

Certain comparative figures have been reclassified or adjusted as described in note 16 to the Company's September 30, 2016 condensed consolidated interim unaudited financial statements.

Segmented Information (unaudited)
Consolidated Net Earnings










For the three months ended September 30, 2016










Canada

United

States

Europe

Lifeco

Corporate

Total

Income







Total net premiums

$

3,117

$

1,493

$

3,724

$

$

8,334


Net investment income








Regular net investment income

631

427

438

1,496



Changes in fair value through profit or loss

579

93

1,635

2,307


Total net investment income

1,210

520

2,073

3,803


Fee and other income

377

566

328

1,271



4,704


2,579


6,125



13,408







Benefits and expenses








Paid or credited to policyholders

3,485

1,776

5,328

10,589


Other (1)

839

656

374

4

1,873


Financing charges

31

34

11

(2)

74


Amortization of finite life intangible assets

16

19

8

43


Restructuring and acquisition expenses

4

15

19

Earnings (loss) before income taxes


333


90


389


(2)


810

Income taxes


45


10


51


2


108

Net earnings (loss) before non-controlling












interests


288


80


338


(4)


702

Non-controlling interests


(3)





(3)

Net earnings (loss)


291


80


338


(4)


705

Preferred share dividends


26



5



31

Net earnings (loss) before capital allocation


265


80


333


(4)


674

Impact of capital allocation


24


(2)


(20)


(2)


Net earnings (loss) - common shareholders

$

289

$

78

$

313

$

(6)

$

674


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



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 nine months ended September 30, 2016


Canada

United

States

Europe

Lifeco

Corporate

Total

Income







Total net premiums

$

8,874

$

4,140

$

9,206

$

$

22,220


Net investment income








Regular net investment income

2,032

1,301

1,408

4

4,745



Changes in fair value through profit or loss

2,056

1,100

4,690

7,846


Total net investment income

4,088

2,401

6,098

4

12,591


Fee and other income

1,108

1,692

956

3,756




14,070


8,233


16,260


4


38,567







Benefits and expenses







Paid or credited to policyholders

10,418

5,884

14,000

30,302


Other (1)

2,489

1,987

1,107

14

5,597


Financing charges

86

106

34

1

227


Amortization of finite life intangible assets

49

61

23

133


Restructuring and acquisition expenses

11

17

28

Earnings (loss) before income taxes


1,028


184


1,079


(11)


2,280

Income taxes (recovery)


119


(18)


110


(3)


208

Net earnings (loss) before non-controlling












interests

909

202

969

(8)

2,072

Non-controlling interests


13


2




15

Net earnings (loss)


896


200


969


(8)


2,057

Preferred share dividends


78



14



92

Net earnings (loss) before capital allocation


818


200


955


(8)


1,965

Impact of capital allocation


74


(6)


(62)


(6)


Net earnings (loss) - common shareholders

$

892

$

194

$

893

$

(14)

$

1,965


(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.

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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