Great-West Lifeco reports 2009 results
Readers are referred to the cautionary note regarding Forward-Looking Information and Non-GAAP Financial Measures at the end of this Release.
TSX:GWO
WINNIPEG, Feb. 11, 2010 /CNW/ - Great-West Lifeco Inc. (Lifeco) has reported net income attributable to common shareholders of $443 million for the three months ended December 31, 2009, compared to $525 million in 2008. On a per common share basis, this represents $0.468 per common share for the three months ended December 31, 2009, compared to $0.586 per common share for 2008.
For the twelve months ended December 31, 2009, net income attributable to common shareholders was $1,627 million, compared to $2,018 million a year ago. On a per common share basis, this represents $1.722 per common share for the twelve months ended December 31, 2009, compared to $2.255 per common share for 2008.
Net income of $525 million and $2,018 million for the three months and twelve months ended December 31, 2008 represents adjusted net income from continuing operations and, as such, excludes certain items as described in the United States section of this Release. Net income attributable to common shareholders for 2008, as reported, was $(907) million, or $(1.011) per common share for the three month period, and $1,396 million, or $1.560 per common share for the twelve month period.
Consolidated assets under administration at December 31, 2009 were $458.6 billion, up $16.6 billion from December 31, 2008.
Highlights
- Sales in Canada of individual life insurance products in the quarter
were 9% higher than 2008, and sales of participating whole life
insurance increased 29% over 2008.
- During 2009, the Company launched Guaranteed Minimum Withdrawal
Benefit (GMWB) products in Canada and Germany.
- Sales in the U.S. Financial Services business increased 97% in the
quarter compared to 2008. Sales of public/non-profit and 401(k) plans
were very strong.
- Putnam net asset flows in the fourth quarter improved by US$6 billion
compared to 2008.
- Putnam was ranked No.1 out of 61 mutual fund companies in the 2010
annual Lipper/Barron's Fund Families Survey based on its funds'
performance during 2009. This survey ranks mutual fund companies
based on their performance across a variety of asset types, both
foreign and domestic. Putnam's strong move in the rankings follows
improvements to the firm's investment platform designed to bolster
long-term performance.
- The Company declared a quarterly common dividend of $0.3075 per
common share payable March 31, 2010, unchanged from the previous
quarter. Dividends paid on common shares for the twelve months ended
December 31, 2009 were 2.5% higher than a year ago.
- Through a number of capital transactions undertaken in 2008 and 2009,
the Company has improved its liquidity position at the holding
company by approximately $1.0 billion, and has rebalanced the
maturity profile of its outstanding capital instruments.
- The Company's capital position remains very strong. Lifeco's Canadian
operating subsidiary, Great-West Life, reported a Minimum Continuing
Capital and Surplus (MCCSR) ratio of 204% at December 31, 2009, and
this did not include any benefit from capital raised in 2008 and
2009 at the Lifeco level.
An improvement in equity market conditions in the fourth quarter, compared to 2008, contributed to an increase in net income attributable to common shareholders of $57 million, or $0.06 per common share as a result of higher investment management fee income, and lower reserves required in connection with equity market linked actuarial liabilities. Although improvement was observed in the quarter, equity market conditions for the twelve month period were significantly weaker in 2009 compared to 2008. As a result, net income for the twelve month period was negatively impacted by $139 million, or $0.15 per common share. Despite lower equity market levels, Great-West Life did not need to establish any actuarial reserves with respect to segregated fund guarantees at December 31, 2009.
Credit market conditions in the fourth quarter, compared to 2008, were characterized by a narrowing of credit spreads, and an increase in yields on government securities. Additionally, certain European financial institutions announced capital and restructuring plans that resulted in the deferral of coupon payments on certain capital instruments issued by those companies. For the three months ended December 31, 2009, the Company recognized investment impairment charges of $182 million, pre-tax. In addition, the Company increased actuarial asset default provisions by $75 million, pre-tax, as a result of credit rating downgrades and related basis changes. The Company also reduced actuarial asset default provisions by $111 million, pre-tax, in connection with the release of provisions previously established in connection with securities that were identified as impaired in the quarter. The impact of these credit-related items on net income attributable to common shareholders in the quarter was a charge of $82 million, or $0.09 per common share, after taking into account pass-through features and other actuarial reserve offsets.
At December 31, 2009, consolidated invested assets were $102.8 billion. The gross book value of impaired investments at that date was $733 million, against which the Company had recorded cumulative impairment provisions of $399 million. The $399 million impairment provisions against invested assets, together with $2,467 million provision for future credit losses included in actuarial liabilities represented 3.1% of bond and mortgage assets at December 31, 2009.
OPERATING RESULTS
Consolidated net income for Lifeco is comprised of the net income of The Great-West Life Assurance Company (Great-West Life), Canada Life Financial Corporation (CLFC), London Life Insurance Company (London Life), Great-West Life & Annuity Insurance Company (GWL&A), and Putnam Investments, LLC (Putnam), together with Lifeco's corporate results.
CANADA
Net income attributable to common shareholders for the fourth quarter of 2009 was $246 million compared to $228 million in 2008, reflecting earnings growth in Individual Insurance & Investment Products. Included in the fourth quarter results in 2009 was a gain on the redemption of the Company's preferred shares, Series E, which increased net income attributable to common shareholders by $15 million. For the twelve months ended December 31, 2009, net income attributable to common shareholders was $883 million compared to $1,003 million in 2008.
Total sales for the twelve months ended December 31, 2009 were $9,031 million compared to $8,115 million in 2008. Sales of protection products increased over the twelve months ended December 31, 2008, driven by Individual Life sales, which were up 10% over 2008.
Total assets under administration at December 31, 2009 were $114.6 billion, compared to $103.9 billion at December 31, 2008.
UNITED STATES
Net income attributable to common shareholders for the fourth quarter of 2009 was $36 million compared to $82 million in 2008. For the twelve months ended December 31, 2009, net income attributable to common shareholders was $228 million compared to $309 million in 2008.
Investment impairment charges and provisions for future credit losses reduced net income attributable to common shareholders by $18 million in the quarter.
Net income of $82 million for the three months ended December 31, 2008 excludes charges for intangible asset and goodwill impairment, a valuation allowance on deferred tax assets, and restructuring costs totaling $1,432 million. In addition to these fourth quarter charges, net income of $309 million for the twelve months ended December 31, 2008 also excludes the gain on sale of GWL&A's health care business of $649 million, income from discontinued operations of $43 million, and two non-recurring items that contributed $118 million to earnings during the first quarter of 2008.
Total sales for the twelve months ended December 31, 2009 were $32.4 billion compared to $42.7 billion in 2008.
Total assets under administration at December 31, 2009 were $277.8 billion compared to $271.1 billion at December 31, 2008. Included in assets under administration at December 31, 2009 were $120.7 billion of mutual fund and institutional account assets managed by Putnam.
EUROPE
Net income attributable to common shareholders for the fourth quarter of 2009 was $165 million compared to $224 million in 2008. For the twelve months ended December 31, 2009, net income attributable to common shareholders was $529 million compared to $726 million in 2008.
Investment impairment charges and provisions for future credit losses reduced net income attributable to common shareholders by $64 million in the quarter.
Total sales for the twelve months ended December 31, 2009 were $3,976 million compared to $5,004 million in 2008.
Total assets under administration at December 31, 2009 were $66.2 billion, compared to $67.0 billion at December 31, 2008.
CORPORATE
Corporate net income for Lifeco attributable to common shareholders was a loss of $4 million for the fourth quarter of 2009 and a loss of $13 million for the twelve months ended December 31, 2009, compared to a loss of $9 million for the fourth quarter of 2008 and a loss of $20 million for the twelve months ended December 31, 2008.
QUARTERLY DIVIDENDS
At its meeting today, the Board of Directors approved a quarterly dividend of $0.3075 per share on the common shares of the Company payable March 31, 2010 to shareholders of record at the close of business March 3, 2010.
In addition, the Directors approved quarterly dividends on:
- Series D First Preferred Shares of $0.293750 per share;
- Series F First Preferred Shares of $0.36875 per share;
- Series G First Preferred Shares of $0.325 per share;
- Series H First Preferred Shares of $0.30313 per share;
- Series I First Preferred Shares of $0.28125 per share;
- Series J First Preferred Shares of $0.3750 per share; and
- Series L First Preferred Shares of $0.353125 per share
all payable March 31, 2010 to shareholders of record at the close of
business March 3, 2010.
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 a financial services holding company with interests in the life insurance, health insurance, retirement savings, investment management and reinsurance businesses. The Company has operations in Canada, the United States, Europe and Asia through The Great-West Life Assurance Company, London Life Insurance Company, The Canada Life Assurance Company, Great-West Life & Annuity Insurance Company and Putnam Investments, LLC. Lifeco and its companies have nearly $459 billion in assets under administration and are members of the Power Financial Corporation group of companies.
Cautionary note regarding Forward-Looking Information
This release contains some forward-looking statements about the Company, including its business operations, strategy and expected financial performance and condition. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as "expects", "anticipates", "intends", "plans", "believes", "estimates" or negative versions thereof and similar expressions. In addition, any statement that may be made concerning future financial performance (including revenues, earnings or growth rates), ongoing business strategies or prospects, possible future Company action including statements made by the Company with respect to the expected benefits of acquisitions or divestitures are also forward-looking statements. Forward-looking statements are based on current expectations and projections about future events 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 made by the Company due to, but not limited to, important factors such as sales levels, premium income, fee income, expense levels, mortality experience, morbidity experience, policy lapse rates and taxes, as well as general economic, political and market factors in North America and internationally, interest and foreign exchange rates, global equity and capital markets, business competition, technological change, changes in government regulations, unexpected judicial or regulatory proceedings, catastrophic events, and the Company's ability to complete strategic transactions and integrate acquisitions. The reader is cautioned that the foregoing list of important factors is not exhaustive, and there may be other factors, including factors set out under "Risk Management and Control Practices" in the Company's 2009 Annual Management's Discussion and Analysis and any listed in other filings with securities regulators, which are available for review at www.sedar.com. The reader is also cautioned to consider these and other factors carefully and to not place undue reliance on forward-looking statements. Other than as specifically required by applicable law, the Company has no intention to update any forward-looking statements whether as a result of new information, future events or otherwise.
Cautionary note regarding Non-GAAP Financial Measures
This release contains some non-GAAP financial measures. Terms by which non-GAAP financial measures are identified include but are not limited to "earnings before restructuring charges", "adjusted net income", "adjusted net income from continuing operations", "net income - adjusted", "earnings before adjustments", "constant currency basis", "premiums and deposits", "sales", and other similar expressions. Non-GAAP financial measures are used to provide management and investors with additional measures of performance. However, non-GAAP financial measures do not have standard meanings prescribed by GAAP and are not directly comparable to similar measures used by other companies. Please refer to the appropriate reconciliations of these non-GAAP financial measures to measures prescribed by GAAP.
Further information
Selected financial information is attached.
Great-West Lifeco's fourth quarter conference call will be held Thursday, February 11 at 3:30 p.m. (Eastern). The call can be accessed through www.greatwestlifeco.com or by phone at:
- Participants in the Toronto area: 416-340-8018
- Participants from North America: 1-866-223-7781
- Participants from Overseas: Dial international access code first,
then 800-6578-9898
A replay of the call will be available from February 11 to February 18, 2010, and can be accessed by calling 1-800-408-3053 or 416-695-5800 in Toronto (passcode: 1041674 followed by the number sign).
Additional information relating to Lifeco, including the 2009 audited financial statements, Management's Discussion and Analysis (MD&A), Annual Information Form (AIF), and CEO/CFO certificates will be filed on SEDAR at www.sedar.com.
FINANCIAL HIGHLIGHTS (unaudited)
(in $ millions except per share amounts)
As at or for the For the
three months ended year ended
------------------------------------------------------
December September December December December
31, 2009 30, 2009 31, 2008 31, 2009 31, 2008
-------------------------------------------------------------------------
Premiums and deposits:
Life insurance,
guaranteed
annuities and
insured health
products $ 4,324 $ 4,336 $ 4,782 $ 18,033 $ 30,007
Self-funded premium
equivalents (ASO
contracts) 632 610 615 2,499 2,410
Segregated funds
deposits:
Individual
products 2,036 1,236 2,054 6,229 7,825
Group products 1,626 2,325 1,399 8,470 5,524
Proprietary mutual
funds and
institutional
deposits(1) 6,042 5,045 6,484 21,507 30,693
------------------------------------------------------
Total premiums
and deposits 14,660 13,552 15,334 56,738 76,459
------------------------------------------------------
Fee and other
income 765 728 743 2,839 3,124
Paid or credited
to policyholders 4,283 8,687 4,812 23,809 26,774
Net income-common
shareholders(4)
Continuing
operations -
adjusted(3) 443 445 525 1,627 2,018
Discontinued
operations -
adjusted(2) - - - - 43
------------------------------------------------------
Net income -
adjusted(3) 443 445 525 1,627 2,061
Adjustments
after tax(3) - - (1,432) - (665)
------------------------------------------------------
Net income 443 445 (907) 1,627 1,396
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-------------------------------------------------------------------------
Per common share
Basic earnings
- adjusted(3) $ 0.468 $ 0.471 $ 0.586 $ 1.722 $ 2.303
Adjustments after
tax(3) - - (1.597) - (0.743)
Basic earnings 0.468 0.471 (1.011) 1.722 1.560
Dividends paid 0.3075 0.3075 0.3075 1.230 1.200
Book value 12.17 12.21 12.61
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-------------------------------------------------------------------------
Return on common
shareholders' equity
(12 months):
Net income -
adjusted(3) 13.8% 13.7% 19.0%
Net income 13.8% 2.4% 12.7%
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Total assets $ 128,369 $ 129,813 $ 130,074
Segregated funds
net assets 87,495 86,640 77,748
Proprietary mutual
funds and
institutional
net assets(5) 123,504 124,272 131,122
--------------------------------
Total assets
under
management 339,368 340,725 338,944
Other assets under
administration(6) 119,207 114,145 103,015
--------------------------------
Total assets under
administration $ 458,575 $ 454,870 $ 441,959
--------------------------------
--------------------------------
Share capital and
surplus $ 13,003 $ 12,861 $ 13,228
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-------------------------------------------------------------------------
(1) Includes Putnam Investments, LLC mutual funds and institutional
deposits, excluding Prime Money Market Fund net deposits.
(2) Represents the operating results of GWL&A's health care business,
which was sold effective April 1, 2008. Does not include the gain on
sale of the health care business.
(3) Net income, basic earnings per common share and return on common
shareholders' equity are presented on an adjusted basis, as a non-
GAAP financial measure of earnings performance, and reflect the
following items in 2008:
Refer to Annual
Per common share Financial
Net ------------------------ Statement
income In quarter Year-to-date Notes
----------------------------------------------------
Q1: Gain on
termination of
reinsurance
agreement $ 176 $ - $ 0.197 Note 15
Reserve
strengthening
in GWL&A (58) $ 118 - (0.065) Note 2
Q2: Gain on sale of
GWL&A's health
care business 649 649 - 0.725 Note 2
Q4: Intangible and
goodwill
impairment (1,353) (1.508) (1.511) Note 8
Valuation
allowance,
income tax (34) (0.038) (0.038) Note 23
Restructuring
costs (45) (1,432) (0.051) (0.051) Note 3
------------------------------
$ (665) $(1.597) $(0.743)
------------------------------
------------------------------
Return on common shareholders' equity is restated excluding non-
recurring items from prior periods.
(4) Net income for the year ended December 31, 2008 includes asset
impairment charges of $100 after-tax and costs of $19 associated with
the transfer of Putnam's Prime Money Market Fund to Federated
Investors, Inc.
(5) Excludes Putnam Prime Money Market Fund.
(6) Other assets under administration includes both retail and
institutional assets in which the Company only performs
administrative or recordkeeping type services for the end client. In
general, fee income is based on the type of services performed per
client and does not fluctuate with asset levels.
SUMMARIES OF CONSOLIDATED OPERATIONS (unaudited)
(in $ millions except per share amounts)
For the three months For the years
ended December 31, ended December 31,
-------------------------------------------
2009 2008 2009 2008
-------------------------------------------
Income
Premium income $ 4,324 $ 4,782 $ 18,033 $ 30,007
Net investment income
Regular net investment
income 1,461 1,423 6,179 5,962
Changes in fair value on
held for trading assets (549) (368) 3,490 (5,161)
-------------------------------------------
Total net investment income 912 1,055 9,669 801
Fee and other income 765 743 2,839 3,124
-------------------------------------------
6,001 6,580 30,541 33,932
-------------------------------------------
Benefits and expenses
Policyholder benefits 3,915 4,929 16,568 16,784
Policyholder dividends and
experience refunds 328 332 1,479 1,348
Change in actuarial liabilities 40 (449) 5,762 8,642
-------------------------------------------
Total paid or credited to
policyholders 4,283 4,812 23,809 26,774
Commissions 391 358 1,370 1,342
Operating expenses 673 659 2,600 2,591
Premium taxes 65 69 257 223
Financing charges 62 37 336 296
Amortization of finite life
intangible assets 21 20 89 83
Restructuring costs - 70 - 70
Intangible and goodwill
impairment - 2,178 - 2,178
-------------------------------------------
Income from continuing operations
before income taxes 506 (1,623) 2,080 375
Income taxes - current (162) (101) (102) 334
- future 209 (640) 447 (612)
-------------------------------------------
Net income from continuing
operations before non-controlling
interests 459 (882) 1,735 653
Non-controlling interests (4) 10 36 (108)
-------------------------------------------
Net income from continuing
operations 463 (892) 1,699 761
Net income from discontinued
operations - - - 692
-------------------------------------------
Net income 463 (892) 1,699 1,453
Perpetual preferred share
dividends 20 15 72 57
-------------------------------------------
Net income - common
shareholders $ 443 $ (907) $ 1,627 $ 1,396
-------------------------------------------
-------------------------------------------
Earnings per common share
Basic $ 0.468 $ (1.011) $ 1.722 $ 1.560
-------------------------------------------
-------------------------------------------
Diluted $ 0.467 $ (1.009) $ 1.719 $ 1.553
-------------------------------------------
-------------------------------------------
CONSOLIDATED BALANCE SHEETS (unaudited)
(in $ millions)
December 31,
---------------------
2009 2008
---------------------
Assets
Bonds $ 66,147 $ 66,554
Mortgage loans 16,684 17,444
Stocks 6,442 5,394
Real estate 3,099 3,188
Loans to policyholders 6,957 7,622
Cash and cash equivalents 3,427 2,850
Funds held by ceding insurers 10,839 11,447
Goodwill 5,406 5,425
Intangible assets 3,238 3,523
Other assets 6,130 6,627
---------------------
Total assets $ 128,369 $ 130,074
---------------------
---------------------
Liabilities
Policy liabilities
Actuarial liabilities $ 98,059 $ 97,895
Provision for claims 1,308 1,466
Provision for policyholder dividends 606 630
Provision for experience rating refunds 317 310
Policyholder funds 2,361 2,326
---------------------
102,651 102,627
Debentures and other debt instruments 4,142 3,821
Funds held under reinsurance contracts 186 192
Other liabilities 4,608 5,969
Repurchase agreements 532 334
Deferred net realized gains 133 161
---------------------
112,252 113,104
Preferred shares 203 752
Capital trust securities and debentures 540 658
Non-controlling interests
Participating account surplus in subsidiaries 2,004 2,012
Preferred shares issued by subsidiaries 157 157
Perpetual preferred shares issued by subsidiaries 147 150
Non-controlling interests in capital stock and surplus 63 13
Share capital and surplus
Share capital
Perpetual preferred shares 1,497 1,329
Common shares 5,751 5,736
Accumulated surplus 7,367 6,906
Accumulated other comprehensive loss (1,664) (787)
Contributed surplus 52 44
---------------------
13,003 13,228
---------------------
Total liabilities, share capital and surplus $ 128,369 $ 130,074
---------------------
---------------------
Segmented Information (unaudited)
Consolidated Operations
For the three months ended December 31, 2009
United Lifeco
Canada States Europe Corporate Total
------------------------------------------------------
Income:
Premium income $ 2,386 $ 685 $ 1,253 $ - $ 4,324
Net investment
income
Regular net
investment
income 633 332 491 5 1,461
Changes in fair
value on held
for trading assets (179) (15) (355) - (549)
------------------------------------------------------
Total net
investment income 454 317 136 5 912
Fee and other income 249 358 158 - 765
------------------------------------------------------
Total income 3,089 1,360 1,547 5 6,001
------------------------------------------------------
Benefits and expenses:
Paid or credited to
policyholders 2,233 853 1,197 - 4,283
Other 530 457 196 8 1,191
Amortization of
finite life
intangible assets 8 11 2 - 21
------------------------------------------------------
Income from continuing
operations before
income taxes 318 39 152 (3) 506
Income taxes 66 13 (28) (4) 47
------------------------------------------------------
Net income before
non-controlling
interests 252 26 180 1 459
Non-controlling
interests (5) (10) 11 - (4)
------------------------------------------------------
Net income from
continuing operations 257 36 169 1 463
Net income from
discontinued operations - - - - -
------------------------------------------------------
Net Income 257 36 169 1 463
Perpetual preferred
share dividends 11 - 4 5 20
------------------------------------------------------
Net income - common
shareholders $ 246 $ 36 $ 165 $ (4) $ 443
------------------------------------------------------
------------------------------------------------------
For the three months ended December 31, 2008
United Lifeco
Canada States Europe Corporate Total
------------------------------------------------------
Income:
Premium income $ 2,199 $ 878 $ 1,705 $ - $ 4,782
Net investment
income
Regular net
investment
income 494 368 570 (9) 1,423
Changes in fair
value on held
for trading assets (608) (281) 521 - (368)
------------------------------------------------------
Total net investment
income (114) 87 1,091 (9) 1,055
Fee and other income 230 335 178 - 743
------------------------------------------------------
Total income 2,315 1,300 2,974 (9) 6,580
------------------------------------------------------
Benefits and expenses:
Paid or credited to
policyholders 1,510 833 2,469 - 4,812
Other 528 376 217 2 1,123
Amortization of
finite life
intangible assets 6 13 1 - 20
Restructuring costs - 70 - - 70
Intangible and
goodwill impairment - 2,178 - - 2,178
------------------------------------------------------
Income from
continuing operations
before income taxes 271 (2,170) 287 (11) (1,623)
Income taxes 9 (811) 63 (2) (741)
------------------------------------------------------
Net income before
non-controlling
interests 262 (1,359) 224 (9) (882)
Non-controlling
interests 23 (9) (4) - 10
------------------------------------------------------
Net income from
continuing operations 239 (1,350) 228 (9) (892)
Net income from
discontinued operations - - - - -
------------------------------------------------------
Net Income 239 (1,350) 228 (9) (892)
Perpetual preferred
share dividends 11 - 4 - 15
------------------------------------------------------
Net income - common
shareholders $ 228 $ (1,350) $ 224 $ (9) $ (907)
------------------------------------------------------
------------------------------------------------------
For the twelve months ended December 31, 2009
United Lifeco
Canada States Europe Corporate Total
------------------------------------------------------
Income:
Premium income $ 8,946 $ 2,973 $ 6,114 $ - $ 18,033
Net investment
income
Regular net
investment
income 2,610 1,521 2,025 23 6,179
Changes in fair
value on held
for trading
assets 1,316 981 1,193 - 3,490
------------------------------------------------------
Total net investment
income 3,926 2,502 3,218 23 9,669
Fee and other income 938 1,240 661 - 2,839
------------------------------------------------------
Total income 13,810 6,715 9,993 23 30,541
------------------------------------------------------
Benefits and expenses:
Paid or credited to
policyholders 10,354 4,778 8,677 - 23,809
Other 2,205 1,594 746 18 4,563
Amortization of
finite life
intangible assets 32 51 6 - 89
------------------------------------------------------
Income from
continuing
operations before
income taxes 1,219 292 564 5 2,080
Income taxes 268 68 7 2 345
------------------------------------------------------
Net income before
non-controlling
interests 951 224 557 3 1,735
Non-controlling
interests 26 (4) 14 - 36
------------------------------------------------------
Net income from
continuing operations 925 228 543 3 1,699
Net income from
discontinued operations - - - - -
------------------------------------------------------
Net Income 925 228 543 3 1,699
Perpetual preferred
share dividends 42 - 14 16 72
------------------------------------------------------
Net income - common
shareholders $ 883 $ 228 $ 529 $ (13) $ 1,627
------------------------------------------------------
------------------------------------------------------
For the twelve months ended December 31, 2008
United Lifeco
Canada States Europe Corporate Total
------------------------------------------------------
Income:
Premium income $ 8,197 $ 2,683 $ 19,127 $ - $ 30,007
Net investment
income
Regular net
investment
income 2,367 1,345 2,262 (12) 5,962
Changes in fair
value on held
for trading
assets (2,168) (1,286) (1,707) - (5,161)
------------------------------------------------------
Total net
investment income 199 59 555 (12) 801
Fee and other income 1,034 1,442 648 - 3,124
------------------------------------------------------
Total income 9,430 4,184 20,330 (12) 33,932
------------------------------------------------------
Benefits and expenses:
Paid or credited to
policyholders 5,748 2,366 18,660 - 26,774
Other 2,175 1,507 759 11 4,452
Amortization of
finite life
intangible assets 28 51 4 - 83
Restructuring costs - 70 - - 70
Intangible and
goodwill
impairment - 2,178 - - 2,178
------------------------------------------------------
Income from
continuing operations
before income taxes 1,479 (1,988) 907 (23) 375
Income taxes 360 (799) 164 (3) (278)
------------------------------------------------------
Net income before
non-controlling
interests 1,119 (1,189) 743 (20) 653
Non-controlling
interests 73 (184) 3 - (108)
------------------------------------------------------
Net income from
continuing
operations 1,046 (1,005) 740 (20) 761
Net income from
discontinued
operations - 692 - - 692
------------------------------------------------------
Net Income 1,046 (313) 740 (20) 1,453
Perpetual preferred
share dividends 43 - 14 - 57
------------------------------------------------------
Net income - common
shareholders $ 1,003 $ (313) $ 726 $ (20) $ 1,396
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For further information: Marlene Klassen, APR, Assistant Vice-President, Communication Services, (204) 946-7705
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