Great-West Lifeco reports second quarter 2015 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, Aug. 5, 2015 /CNW/ - Great-West Lifeco Inc. (Lifeco) has reported net earnings attributable to common shareholders of $659 million or $0.661 per common share for the three months ended June 30, 2015 compared to $615 million or $0.616 per common share for the same period in 2014, an increase of 7%.

For the six months ended June 30, 2015, net earnings attributable to common shareholders were $1,359 million, compared to $1,202 million for the same period in 2014, an increase of 13%.  This represents $1.363 per common share for the six months ended June 30, 2015, compared to $1.203 per common share for the same period in 2014.

Consolidated assets under administration at June 30, 2015 were $1.1 trillion, up $85 billion from December 31, 2014.

Highlights - In Quarter

• Total Company sales in the second quarter of 2015 of $24.5 billion were up 52% from the same quarter in 2014:
• Canada sales were $3.0 billion, up 4%, due to continued growth of insurance and individual Wealth Management sales.
• Europe sales were $3.4 billion, up 21%, primarily due to strong growth in Ireland and Germany.
• Great-West Financial sales were US$7.8 billion, up 250%, due to continued strong sales in Empower Retirement.
• Putnam gross sales were US$6.9 billion, down 6% overall.  Institutional sales increased 42%, while mutual fund sales decreased by 21%.
• The last of the policy migration activities for the Irish Life integration successfully concluded during the second quarter of 2015.  The Company now expects to realize €48 million of annualized synergies from the acquisition of Irish Life, exceeding the annualized synergy target of €40 million by 20%.
• The Company maintained a strong ROE of 15.7% based on net earnings.
• The Company's capital position remained very strong. The Great-West Life Assurance Company reported a Minimum Continuing Capital Surplus Requirements (MCCSR) ratio of 229% at June 30, 2015.
• The Company declared a quarterly common dividend of $0.3260  per common share payable September 30, 2015.

OPERATING RESULTS
Consolidated net earnings of Lifeco include the net earnings of The Great-West Life Assurance Company (Great-West Life) and its operating subsidiaries London Life Insurance Company (London Life) and The Canada Life Assurance Company (Canada Life) 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.

CANADA
The Canada segment of Lifeco includes the operating results of the Canadian businesses operated by Great-West Life, London Life and Canada Life, together with an allocation of a portion of Lifeco's corporate results.  The three primary business units included in this segment are Individual Insurance, Wealth Management and Group Insurance.  Great-West Life, London Life and Canada Life provide accumulation, annuity, life, disability and critical illness insurance products to individual and group clients.

Net earnings attributable to common shareholders for the second quarter of 2015 were $308 million, up 1% compared to $304 million in the second quarter of 2014.  For the six months ended June 30, 2015, net earnings attributable to common shareholders were $607 million compared to $598 million for the same period in 2014.

Total sales in the second quarter of 2015 of $3.0 billion compared to $2.9 billion in the second quarter of 2014.  This reflects strong participating life insurance sales, higher individual investment funds sales and higher creditor sales, partially offset by lower group retirement product sales.  Total sales for the six months ended June 30, 2015 were $6.2 billion compared to $6.1 billion for the same period in 2014.

Total Canada segment assets under administration at June 30, 2015 were $166 billion, compared to $161 billion at December 31, 2014.

UNITED STATES
The United States operating results for Lifeco include the results of Great-West Financial, Putnam and the insurance businesses in the United States branches of Great-West Life and Canada Life, together with an allocation of a portion of Lifeco's corporate results.

Great-West Financial, and specifically the Empower Retirement brand, provides an array of financial security products, including employer-sponsored defined contribution plans, administrative and record-keeping services, individual retirement accounts, fund management and investment and advisory services.  It also provides life insurance and annuity products and executive benefits products.  Putnam provides investment management, certain administrative functions, distributions and related services through a broad range of investment products.

Net earnings attributable to common shareholders for the second quarter of 2015 were $67 million, reflecting Great-West Financial net earnings of $70 million and a net loss of $3 million for Putnam, compared to $69 million in the second quarter of 2014.  For the six months ended June 30, 2015, net earnings attributable to common shareholders were $188 million compared to $110 million for the same period in 2014.

Great-West Financial sales in the second quarter of 2015 were US$7.8 billion, up from US$2.2 billion in the second quarter of 2014, primarily due to an increased number of large plan sales in Empower Retirement.  Sales for the six months ended June 30, 2015 were US$15.8 billion compared to US$5.1 billion in 2014.

Putnam in-quarter average assets under management as at June 30, 2015 were US$160 billion compared to US$155 billion a year ago, an increase of over 3%, primarily due to the impact of positive market and investment performance.  Net asset outflows for the second quarter of 2015 were US$1.8 billion compared to net asset inflows of US$0.2 billion for the same quarter in 2014. 

Total United States segment assets under administration at June 30, 2015 were $760 billion compared to $697 billion at December 31, 2014.

EUROPE
The Europe segment comprises two distinct business units: Insurance & Annuities and Reinsurance, as well as an allocation of Lifeco's corporate results.  Insurance & Annuities provides protection and wealth management products including payout annuities, through subsidiaries of Canada Life in the U.K., Isle of Man and Germany, and through Irish Life in Ireland.  Reinsurance operates primarily in the U.S., Barbados and Ireland, and is conducted through Canada Life, London Life and their subsidiaries.

Net earnings attributable to common shareholders for the second quarter of 2015 were $289 million, up 17% compared to $246 million in the second quarter of 2014.  For the six months ended June 30, 2015, net earnings attributable to common shareholders were $575 million compared to $505 million for the same period in 2014.

Insurance & Annuities sales for the second quarter of 2015 were $3.4 billion, compared to $2.8 billion a year ago, an increase of 21%.  The increase primarily reflects strong sales in Ireland and Germany.  Sales for the six months ended June 30, 2015 were $7.9 billion compared to $6.3 billion for the same period in 2014.

Total Europe segment assets under administration at June 30, 2015 were $222 billion, up from $205 billion at December 31, 2014.

LIFECO CORPORATE
The Lifeco Corporate segment includes operating results for activities of Lifeco that are not associated with the major business units of the Company.

Lifeco Corporate segment net loss attributable to common shareholders was $5 million in the second quarter of 2015 compared to a net loss of $4 million in the second quarter of 2014.  For the six months ended June 30, 2015, the net loss attributable to common shareholders of $11 million was comparable to the same period in 2014.

QUARTERLY DIVIDENDS

At its meeting today, the Board of Directors approved a quarterly dividend of $0.3260 per share on the common shares of the Company payable September 30, 2015 to shareholders of record at the close of business September 2, 2015.

In addition, the Directors approved quarterly dividends on:

• Series F First Preferred Shares of $0.36875 per share;
• Series G First Preferred Shares of $0.3250 per share;
• Series H First Preferred Shares of $0.30313 per share;
• Series I First Preferred Shares of $0.28125 per share;
• Series L First Preferred Shares of $0.353125 per share;
• Series M First Preferred Shares of $0.36250 per share;
• Series N First Preferred Shares of $0.228125 per share;
• Series P First Preferred Shares of $0.3375 per share;
• Series Q First Preferred Shares of $0.321875 per share;
• Series R First Preferred Shares of $0.3000 per share; and
• Series S First Preferred Shares of $0.328125 per share

all payable September 30, 2015 to shareholders of record at the close of business September 2, 2015.

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

GREAT-WEST LIFECO

Great-West Lifeco Inc. (TSX:GWO) is an international financial services holding company with interests in life insurance, health insurance, retirement and investment services, asset management and reinsurance businesses.  Great-West Lifeco has operations in Canada, the United States, Europe and Asia through Great-West Life, London Life, Canada Life, Irish Life, Great-West Financial and Putnam Investments.  Great-West Lifeco and its companies have $1.1 trillion in assets under administration and are members of the Power Financial Corporation group of companies.

Cautionary note regarding Forward-Looking Information
This release contains some forward-looking statements about the Company, including its business operations, strategy and expected financial performance and condition.  Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as "expects", "anticipates", "intends", "plans", "believes", "estimates" and similar expressions or negative versions thereof.  In addition, any statement that may be made concerning future financial performance (including revenues, earnings or growth rates), ongoing business strategies or prospects, and possible future actions by the Company, including statements made with respect to the expected benefits of acquisitions and divestitures, are also forward-looking statements.  Forward-looking statements are based on expectations and projections about future events that were current at the time of the statements and are inherently subject to, among other things, risks, uncertainties and assumptions about the Company, economic factors and the financial services industry generally, including the insurance and mutual fund industries.  They are not guarantees of future performance, and actual events and results could differ materially from those expressed or implied by forward-looking statements.  Material factors and assumptions that were applied in formulating the forward-looking information contained herein include the assumption that the business and economic conditions affecting the Company's operations will continue substantially in their current state, including, without limitation, with respect to market prices for products provided, sales levels, premium income, fee income, expense levels, mortality experience, morbidity experience, policy lapse rates, reinsurance, taxes, inflation, general economic, political and market factors in North America and internationally, interest and foreign exchange rates, investment values, global equity and capital markets, business competition, continuity and availability of personnel and third party service providers, the Company's ability to complete strategic transactions and integrate acquisitions and that there will be no unplanned material changes to the Company's facilities, customer and employee relations or credit arrangements.  Many of these assumptions are based on factors and events that are not within the control of the Company and there is no assurance that they will prove to be correct.  Other important factors and assumptions that could cause actual results to differ materially from those contained in forward-looking statements include technological change, breaches or failure of information systems and security (including cyber attacks), payments required under investment products, changes in local and international laws and regulations, changes in accounting policies and the effect of applying future accounting policy changes, unexpected judicial or regulatory proceedings and catastrophic events.  The reader is cautioned that the foregoing list of assumptions and factors is not exhaustive, and there may be other factors listed in other filings with securities regulators, including factors set out in the Company's 2014 Annual MD&A under "Risk Management and Control Practices" and "Summary of Critical Accounting Estimates", which, along with other filings, is available for review at www.sedar.com.  The reader is also cautioned to consider these and other factors carefully and not to place undue reliance on forward-looking statements.  Other than as specifically required by applicable law, the Company does not intend to update any forward-looking statements whether as a result of new information, future events or otherwise.

Cautionary note regarding Non-IFRS Financial Measures

This release contains some non-IFRS financial measures.  Terms by which non-IFRS financial measures are identified include, but are not limited to, "operating earnings", "constant currency basis", "premiums and deposits", "sales", "assets under management", "assets under administration" and other similar expressions.  Non-IFRS financial measures are used to provide management and investors with additional measures of performance to help assess results where no comparable IFRS measure exists.  However, non-IFRS financial measures do not have standard meanings prescribed by IFRS and are not directly comparable to similar measures used by other companies.  Please refer to the appropriate reconciliations of these non-IFRS financial measures to measures prescribed by IFRS.

Further information
Selected financial information is attached.

Great-West Lifeco's second quarter conference call and audio webcast will be held August 6, 2015 at 11:30 a.m. (ET).  The call and webcast can be accessed through www.greatwestlifeco.com or by phone at:

• Participants in the Toronto area:  416-340-2218 
• Participants from North America: 1-800-396-7098
• For International participants:  Look up the dial-in information for your location here: 

https://www.confsolutions.ca/ILT?oss=1P49R8003967098

A replay of the call will be available from August 6, 2015 to August 13, 2015, and can be accessed by calling 1-800-408-3053 or 905-694-9451 in Toronto (passcode: 1428889). The archived webcast will be available on www.greatwestlifeco.com from August 6, 2015 to August 5, 2016.

Additional information relating to Lifeco, including the most recent interim unaudited consolidated financial statements, interim Management's Discussion and Analysis (MD&A) and CEO/CFO certification will be filed on SEDAR at www.sedar.com.

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FINANCIAL HIGHLIGHTS (unaudited)
(in Canadian $ millions except per share amounts)
				As at or for the three months ended										For the six months ended
					June 30 2015			March 31 2015			June 30 2014^(2)(4)				June 30 2015			June 30 2014^(2)(4)
Premiums and deposits:
	Net premium income (Life insurance,  guaranteed annuities and insured  health products)			$	5,516		$	6,932		$	5,764			$	12,448		$	11,031
	Policyholder deposits (segregated funds):
		Individual products			3,031			2,981			2,830				6,012			5,776
		Group products			1,835			2,035			1,940				3,870			5,304
Premiums and deposits					10,382			11,948			10,534				22,330			22,111
		Self-funded premium equivalents  (Administrative services only contracts)^(1)			659			662			658				1,321			1,316
		Proprietary mutual funds and institutional deposits^(1)(2)			11,032			12,938			9,592				23,970			21,887
Total premiums and deposits^(1)					22,073			25,548			20,784				47,621			45,314
Fee and other income					1,226			1,258			1,110				2,484			2,169
Paid or credited to policyholders^(3)					1,588			9,889			7,580				11,477			15,069
Earnings
Net earnings - common shareholders				$	659		$	700		$	615			$	1,359		$	1,202
Per common share
		Basic earnings			0.661			0.702			0.616				1.363			1.203
		Dividends paid			0.3260			0.3260			0.3075				0.652			0.615
		Book value^(4)			18.28			17.68			15.87
Return on common shareholders' equity^(4)(5)
	Operating earnings^(6)				15.7%			16.0%			14.5%
	Net earnings				15.7%			16.0%			16.0%
Total assets^(4)				$	376,428		$	381,331		$	344,351
	Proprietary mutual funds and institutional net assets^(7)				232,168			238,650			200,113
Total assets under management^(4)(7)					608,596			619,981			544,464
	Other assets under administration^(8)				539,259			556,893			260,079
Total assets under administration^(4)				$	1,147,855		$	1,176,874		$	804,543
Total equity^(4)				$	23,470		$	22,888		$	20,951

^(1)	In addition to premiums and deposits reported in the financial statements, the Company includes premium equivalents on self-funded group insurance administrative services only (ASO) contracts and deposits on proprietary mutual funds and institutional accounts to calculate total premiums and deposits (a non-IFRS financial measure).  This measure provides useful information as it is an indicator of top line growth.
^(2)	Comparative figures for premiums and deposits (a non-IFRS financial measure) have been restated for consistency across the Company's business units.
^(3)	Paid or credited to policyholders includes the impact of changes in fair values of assets supporting insurance and investment contract liabilities.
^(4)	Comparative figures have been adjusted as described in note 2 to the Company's condensed consolidated interim unaudited financial statements for the period ended June 30, 2015.
^(5)	Return on shareholders' equity is detailed within the "Capital Allocation Methodology" section of the Company's June 30, 2015 Management's Discussion and Analysis.
^(6)	Operating earnings (a non-IFRS financial measure) excludes the impact of certain litigation provisions described in note 32 to the Company's December 31, 2014 consolidated annual audited financial statements.
^(7)	Total assets under management (a non-IFRS financial measure) provides an indicator of the size and volume of the overall business of the Company.  Services provided in respect of assets under management include the selection of investments, the provision of investment advice and discretionary portfolio management on behalf of clients.  This includes internally and externally managed funds where the Company has oversight over the investment policies.
^(8)	Other assets under administration (a non-IFRS financial measure) includes assets where the Company only provides administration services for which the Company earns fee and other income.  These assets are beneficially owned by clients and the Company does not direct the investing activities.  Services provided relating to assets under administration includes recordkeeping, safekeeping, collecting investment income, settling of transactions or other administrative services.  Administrative services are an important aspect of the overall business of the Company and should be considered when comparing volumes, size and trends.

CONSOLIDATED STATEMENTS OF EARNINGS (unaudited)
(in Canadian $ millions except per share amounts)
					For the three months ended										For the six months ended
						June 30 2015			March 31 2015			June 30 2014				June 30 2015			June 30 2014
Income
	Premium income
		Gross premiums written			$	6,410		$	7,806		$	6,646			$	14,216		$	12,757
		Ceded premiums				(894)			(874)			(882)				(1,768)			(1,726)
	Total net premiums					5,516			6,932			5,764				12,448			11,031
	Net investment income
		Regular net investment income				1,519			1,536			1,526				3,055			3,015
		Changes in fair value through profit or loss				(4,037)			2,953			1,670				(1,084)			3,792
	Total net investment income					(2,518)			4,489			3,196				1,971			6,807
	Fee and other income					1,226			1,258			1,110				2,484			2,169
						4,224			12,679			10,070				16,903			20,007
Benefits and expenses
	Policyholder benefits
		Insurance and investment contracts
			Gross			5,127			5,640			4,592				10,767			9,393
			Ceded			(490)			(483)			(476)				(973)			(951)
	Total net policyholder benefits					4,637			5,157			4,116				9,794			8,442
	Policyholder dividends and experience refunds					374			381			358				755			746
	Changes in insurance and investment contract liabilities					(3,423)			4,351			3,106				928			5,881
	Total paid or credited to policyholders					1,588			9,889			7,580				11,477			15,069
	Commissions					554			515			546				1,069			1,051
	Operating and administrative expenses					1,081			1,078			915				2,159			1,848
	Premium taxes					80			84			83				164			168
	Financing charges					75			77			76				152			152
	Amortization of finite life intangible assets					37			36			32				73			65
	Restructuring and acquisition expenses					14			7			10				21			15
Earnings before income taxes						795			993			828				1,788			1,639
Income taxes						86			224			156				310			329
Net earnings before non-controlling interests						709			769			672				1,478			1,310
Attributable to non-controlling interests						19			37			28				56			50
Net earnings						690			732			644				1,422			1,260
Preferred share dividends						31			32			29				63			58
Net earnings - common shareholders					$	659		$	700		$	615			$	1,359		$	1,202
Earnings per common share
	Basic				$	0.661		$	0.702		$	0.616			$	1.363		$	1.203
	Diluted				$	0.659		$	0.700		$	0.615			$	1.359		$	1.202

CONSOLIDATED BALANCE SHEETS (unaudited)
(in Canadian $ millions)
					June 30 2015			December 31 2014
Assets
Cash and cash equivalents				$	2,688		$	2,498
Bonds					108,452			103,168
Mortgage loans					21,104			20,546
Stocks					7,826			7,820
Investment properties					5,220			4,613
Loans to policyholders					8,221			7,711
					153,511			146,356
Funds held by ceding insurers					14,050			12,154
Goodwill					5,865			5,855
Intangible assets					3,768			3,625
Derivative financial instruments					466			652
Owner occupied properties					629			619
Fixed assets					255			228
Reinsurance assets					5,139			5,151
Premiums in course of collection, accounts and interest receivable					3,444			3,056
Other assets					2,662			2,368
Current income taxes					69			48
Deferred tax assets					1,735			1,631
Investments on account of segregated fund policyholders					184,835			174,966
Total assets				$	376,428		$	356,709
Liabilities
Insurance contract liabilities				$	152,315		$	145,198
Investment contract liabilities					842			857
Debentures and other debt instruments					5,265			5,355
Funds held under reinsurance contracts					328			313
Derivative financial instruments					1,678			1,195
Accounts payable					2,061			1,480
Other liabilities					3,326			3,099
Current income taxes					537			737
Deferred tax liabilities					1,609			1,450
Capital trust debentures					162			162
Investment and insurance contracts on account of segregated fund policyholders					184,835			174,966
Total liabilities					352,958			334,812
Equity
Non-controlling interests
	Participating account surplus in subsidiaries				2,547			2,480
	Non-controlling interests in subsidiaries				185			163
Shareholders' equity
	Share capital
		Preferred shares			2,514			2,514
		Common shares			7,166			7,102
	Accumulated surplus				9,779			9,134
	Accumulated other comprehensive income				1,170			378
	Contributed surplus				109			126
Total equity					23,470			21,897
Total liabilities and equity				$	376,428		$	356,709

Segmented Information (unaudited)
Consolidated Net Earnings
For the three months ended June 30, 2015
					Canada			United States			Europe			Lifeco Corporate			Total
Income
	Total net premiums			$	2,839		$	905		$	1,772		$	—		$	5,516
	Net investment income
		Regular net investment income			630			390			498			1			1,519
		Changes in fair value through profit or loss			(1,181)			(566)			(2,290)			—			(4,037)
	Total net investment income				(551)			(176)			(1,792)			1			(2,518)
	Fee and other income				366			577			283			—			1,226
					2,654			1,306			263			1			4,224
Benefits and expenses
	Paid or credited to policyholders				1,460			543			(415)			—			1,588
	Other ^(1)				775			614			322			4			1,715
	Financing charges				29			35			10			1			75
	Amortization of finite life intangible assets				15			18			4			—			37
	Restructuring and acquisition expenses				—			3			11			—			14
Earnings (loss) before income taxes					375			93			331			(4)			795
Income taxes (recovery)					47			22			18			(1)			86
Net earnings (loss) before non‑controlling interests					328			71			313			(3)			709
Non‑controlling interests					16			2			1			—			19
Net earnings (loss)					312			69			312			(3)			690
Preferred share dividends					26			—			5			—			31
Net earnings (loss) before capital allocation					286			69			307			(3)			659
Impact of capital allocation					22			(2)			(18)			(2)			—
Net earnings (loss) ‑ common shareholders				$	308		$	67		$	289		$	(5)		$	659

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

For the three months ended June 30, 2014
					Canada			United States			Europe			Lifeco Corporate			Total
Income
	Total net premiums			$	2,776		$	832		$	2,156		$	—		$	5,764
	Net investment income
		Regular net investment income			643			352			529			2			1,526
		Changes in fair value through profit or loss			780			302			588			—			1,670
	Total net investment income				1,423			654			1,117			2			3,196
	Fee and other income				356			436			318			—			1,110
					4,555			1,922			3,591			2			10,070
Benefits and expenses
	Paid or credited to policyholders				3,367			1,295			2,918			—			7,580
	Other ^(1)				728			478			332			6			1,544
	Financing charges				29			35			12			—			76
	Amortization of finite life intangible assets				13			14			5			—			32
	Restructuring and acquisition expenses				—			—			10			—			10
Earnings (loss) before income taxes					418			100			314			(4)			828
Income taxes (recovery)					90			25			42			(1)			156
Net earnings (loss) before non‑controlling interests					328			75			272			(3)			672
Non‑controlling interests					24			2			2			—			28
Net earnings (loss)					304			73			270			(3)			644
Preferred share dividends					24			—			5			—			29
Net earnings (loss) before capital allocation					280			73			265			(3)			615
Impact of capital allocation					24			(4)			(19)			(1)			—
Net earnings (loss) ‑ common shareholders				$	304		$	69		$	246		$	(4)		$	615

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

For the six months ended June 30, 2015
					Canada			United States			Europe			Lifeco Corporate			Total
Income
	Total net premiums			$	5,506		$	1,634		$	5,308		$	—		$	12,448
	Net investment income
		Regular net investment income			1,259			785			1,011			—			3,055
		Changes in fair value through profit or loss			195			(334)			(945)			—			(1,084)
	Total net investment income				1,454			451			66			—			1,971
	Fee and other income				724			1,150			610			—			2,484
					7,684			3,235			5,984			—			16,903
Benefits and expenses
	Paid or credited to policyholders				5,225			1,664			4,588			—			11,477
	Other ^(1)				1,538			1,200			646			8			3,392
	Financing charges				58			71			22			1			152
	Amortization of finite life intangible assets				29			35			9			—			73
	Restructuring and acquisition expenses				—			4			17			—			21
Earnings (loss) before income taxes					834			261			702			(9)			1,788
Income taxes (recovery)					170			66			76			(2)			310
Net earnings (loss) before non‑controlling interests					664			195			626			(7)			1,478
Non‑controlling interests					49			4			3			—			56
Net earnings (loss)					615			191			623			(7)			1,422
Preferred share dividends					52			—			11			—			63
Net earnings (loss) before capital allocation					563			191			612			(7)			1,359
Impact of capital allocation					44			(3)			(37)			(4)			—
Net earnings (loss) ‑ common shareholders				$	607		$	188		$	575		$	(11)		$	1,359

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

For the six months ended June 30, 2014
					Canada			United States			Europe			Lifeco Corporate			Total
Income
	Total net premiums			$	5,389		$	1,644		$	3,998		$	—		$	11,031
	Net investment income
		Regular net investment income			1,281			709			1,027			(2)			3,015
		Changes in fair value through profit or loss			1,727			625			1,440			—			3,792
	Total net investment income				3,008			1,334			2,467			(2)			6,807
	Fee and other income				700			855			614			—			2,169
					9,097			3,833			7,079			(2)			20,007
Benefits and expenses
	Paid or credited to policyholders				6,732			2,593			5,744			—			15,069
	Other ^(1)				1,443			972			642			10			3,067
	Financing charges				58			70			24			—			152
	Amortization of finite life intangible assets				26			29			10			—			65
	Restructuring and acquisition expenses				—			—			15			—			15
Earnings (loss) before income taxes					838			169			644			(12)			1,639
Income taxes (recovery)					195			48			89			(3)			329
Net earnings (loss) before non‑controlling interests					643			121			555			(9)			1,310
Non‑controlling interests					46			3			1			—			50
Net earnings (loss)					597			118			554			(9)			1,260
Preferred share dividends					47			—			11			—			58
Net earnings (loss) before capital allocation					550			118			543			(9)			1,202
Impact of capital allocation					48			(8)			(38)			(2)			—
Net earnings (loss) ‑ common shareholders				$	598		$	110		$	505		$	(11)		$	1,202

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

SOURCE Great-West Lifeco Inc.

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