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:

• Participants in the Toronto area:  416-340-2216      
• Participants from North America: 1-866-223-7781
• For International participants:  Look up the dial-in information for your location here: https://www.confsolutions.ca/ILT?oss=1P49R8662237781

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.

Media Contact: Marlene Klassen, APR, 204-946-7705, Email: [email protected]; Investor Relations Contact: Wendi Thiessen, 204-946-7452, Email: [email protected]