Great-West Lifeco reports second quarter 2017 adjusted net earnings of $712 million, up 6% from the second quarter of 2016
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.
TORONTO, Aug. 2, 2017 /CNW/ - Great-West Lifeco Inc. (Lifeco or the Company) today announced net earnings attributable to common shareholders of $585 million or $0.591 per common share. Included in Lifeco's net earnings for the second quarter of 2017 were restructuring costs of $127 million, primarily related to the realignment of the Canada segment operations. Excluding these costs, adjusted net earnings for the second quarter of 2017 were $712 million or $0.719 per common share, up 6% compared to $671 million or $0.675 per common share for the same quarter last year. The increase in adjusted net earnings reflects strong business results and the impact of ongoing expense management initiatives.
For the six months ended June 30, 2017, excluding the impact of restructuring costs, Lifeco's adjusted net earnings were $1,331 million or $1.345 per common share compared to $1,291 million or $1.300 per common share for the same period last year.
"We were very pleased with the second quarter results, which reflected strong operating performances across businesses and geographies," said Paul Mahon, President and Chief Executive Officer. "Restructuring initiatives undertaken earlier in the year are delivering expected cost savings. We are managing expenses carefully while continuing to invest in core markets and new capabilities to improve customer experiences and drive future growth."
Consolidated assets under administration at June 30, 2017 were over $1.3 trillion, an increase of $60.7 billion from December 31, 2016.
Highlights – In Quarter
Fee income of $1.4 billion up 12%
- Fee and other income was $1.4 billion, up 12% from the second quarter of 2016, primarily as a result of increases in all segments driven by market performance and business growth.
Capital strength and financial flexibility maintained
- The Great-West Life Assurance Company reported a Minimum Continuing Capital Surplus Requirements (MCCSR) ratio of 239% at June 30, 2017.
- Lifeco declared a quarterly common dividend of $0.3670 per common share payable September 29, 2017.
- Adjusted Return on Equity (ROE), excluding the impact of restructuring costs, was 13.9%.
Completed offering of US$700 million of senior notes and redeemed $1.0 billion hybrid subordinated debenture
- On May 26, 2017, a subsidiary of the Company issued US$700 million principal amount 4.150% senior unsecured notes that are fully and unconditionally guaranteed by Lifeco, maturing on June 3, 2047.
- On June 21, 2017, a subsidiary of the Company redeemed all $1.0 billion principal amount of its 5.691% subordinated debentures due June 21, 2067 at a redemption price equal to 100% of the principal amount of the debentures, plus any accrued interest up to but excluding the redemption date.
Completed offering of $200 million of Preferred Shares
- On May 18, 2017 Lifeco issued 8,000,000 Series T, 5.15% Non-Cumulative First Preferred Shares at $25.00 per share for gross proceeds of $200 million.
SEGMENTED OPERATING RESULTS
For reporting purposes, Lifeco's 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. For more information, please refer to the Company's 2017 second quarter MD&A.
CANADA
- Canada progresses business transformation – Following the realignment into two new business units: one focused on individual customers and the other on group customers, the Canadian operations made progress on the previously announced targeted annual expense reductions of $200 million pre-tax. As of June 30, 2017, the Company has achieved approximately $46 million pre-tax in annualized reductions, which resulted in expense reductions of $18 million pre-tax for the first half of 2017, approximately $14 million relating to the common shareholders' account and $4 million relating to the participating accounts. As part of this effort, the Company incurred a $215 million pre-tax restructuring charge, which impacted net earnings attributable to the common shareholders by $126 million.
- Q2 Canada sales up 21% – Sales in the second quarter of 2017 were $3.2 billion, up 21% from the second quarter of 2016. The increase reflects strong sales in individual and group investment funds and single premium group annuities as well as higher group insurance sales.
- Q2 Canada segment adjusted net earnings of $311 million – Adjusted net earnings attributable to common shareholders for the second quarter of 2017 were $311 million compared to $327 million in the second quarter of 2016, primarily due to lower contributions from investment experience which were partially offset by strong core business results including higher fee income and more favourable morbidity and mortality experience. For the six months ended June 30, 2017, adjusted net earnings attributable to common shareholders were $566 million compared to $603 million for the same period last year.
- Great-West Life completes acquisition of Financial Horizons Group, the leading MGA in the Canadian market – Subsequent to the second quarter of 2017, the Company, through its subsidiary Great-West Life, completed the acquisition of Financial Horizons Group, a Canadian Managing General Agency (MGA), that offers access to life and health insurance, employee benefits, pensions, investments, structured settlements, and risk management products and services to advisors throughout Canada.
UNITED STATES
- Q2 U.S. segment net earnings up 55% – Net earnings attributable to common shareholders for the second quarter of 2017 were US$62 million, up 55%, compared to net earnings of US$40 million in the second quarter of 2016 driven by growth in fee income and lower expenses for both Empower Retirement and Putnam. For the six months ended June 30, 2017, net earnings attributable to common shareholders were US$104 million compared to US$87 million for the same period last year.
- Q2 sales for Great-West Financial up 9% – Sales in the second quarter of 2017 were US$5.1 billion, up 9% from the second quarter of 2016 primarily due to higher Empower Retirement sales.
- Putnam average assets up 10% – Putnam average assets under management for the three months ended June 30, 2017 were US$161.8 billion compared to US$146.7 billion for the same quarter last year, an increase of 10%, primarily due to the cumulative impact of market performance and net asset inflows from the institutional business over the twelve month period. Putnam ending assets under management at June 30, 2017 were US$162.9 billion.
- Improved Putnam mutual fund net cash flows – Putnam's net cash outflows from mutual funds of US$406 million for the three months ended June 30, 2017 were a US$2.0 billion improvement from the same period last year.
EUROPE
- Q2 Europe segment net earnings up 10% – Net earnings attributable to common shareholders for the second quarter of 2017 were $321 million compared to $293 million in the second quarter of 2016 driven by strong investment performance and earnings growth across all regions in local currency. For the six months ended June 30, 2017, net earnings attributable to common shareholders were $610 million compared to $580 million for the same period last year.
- Irish Life Health remains on track to deliver target expense reductions – As of June 30, 2017, the Company has achieved €8 million pre-tax of annualized synergies to date, relating to the integration of the Irish Life Health operations and remains on track to achieve targeted annual cost savings of €16 million pre-tax within the next six months. Irish Life has also achieved €5 million pre-tax annualized expense reductions in its retail division with a target of €8 million pre-tax by the end of 2017.
- Europe assets under management up 8% – Assets under management as of June 30, 2017 were $203.8 million, up 8% from the second quarter of 2016 and contributed to Europe fee and other income increasing 13% over the same period.
QUARTERLY DIVIDENDS
At its meeting today, the Board of Directors approved a quarterly dividend of $0.3670 per share on the common shares of Lifeco payable September 29, 2017 to shareholders of record at the close of business September 1, 2017.
In addition, the Directors approved quarterly dividends on Lifeco's preferred shares, as follows:
| First Preferred Shares |
Record Date |
Payment Date |
Amount, per share |
| Series F |
September 1, 2017 |
September 29, 2017 |
$0.36875 |
| Series G |
September 1, 2017 |
September 29, 2017 |
$0.3250 |
| Series H |
September 1, 2017 |
September 29, 2017 |
$0.30313 |
| Series I |
September 1, 2017 |
September 29, 2017 |
$0.28125 |
| Series L |
September 1, 2017 |
September 29, 2017 |
$0.353125 |
| Series M |
September 1, 2017 |
September 29, 2017 |
$0.3625 |
| Series N |
September 1, 2017 |
September 29, 2017 |
$0.1360 |
| Series O |
September 1, 2017 |
September 29, 2017 |
$0.115253 |
| Series P |
September 1, 2017 |
September 29, 2017 |
$0.3375 |
| Series Q |
September 1, 2017 |
September 29, 2017 |
$0.321875 |
| Series R |
September 1, 2017 |
September 29, 2017 |
$0.3000 |
| Series S |
September 1, 2017 |
September 29, 2017 |
$0.328125 |
| Series T |
September 1, 2017 |
September 29, 2017 |
$0.476200 |
For purposes of the Income Tax Act (Canada), and any similar provincial legislation, the dividends referred to above are eligible dividends.
Selected financial information is attached.
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 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); Great-West Life & Annuity Insurance Company (Great-West Financial) and Putnam Investments, LLC (Putnam). Lifeco and its companies have over $1.3 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 the Company's operations, business, financial condition, expected financial performance (including revenues, earnings or growth rates), ongoing business strategies or prospects, and possible future actions by the Company, including statements made with respect to the expected benefits of acquisitions and divestitures. Forward-looking statements are based on expectations, forecasts, predictions, projections and conclusions about future events that were current at the time of the statements and are inherently subject to, among other things, risks, uncertainties and assumptions about the Company, economic factors and the financial services industry generally, including the insurance and mutual fund industries. They are not guarantees of future performance, and the reader is cautioned that actual events and results could differ materially from those expressed or implied by forward-looking statements. Material factors and assumptions that were applied in formulating the forward-looking information contained herein include the assumption that the business and economic conditions affecting the Company's operations will continue substantially in their current state, including, without limitation, with respect to customer behaviour, the Company's reputation, market prices for products provided, sales levels, premium income, fee income, expense levels, mortality experience, morbidity experience, policy lapse rates, reinsurance arrangements, liquidity requirements, capital requirements, credit ratings, taxes, inflation, interest and foreign exchange rates, investment values, hedging activities, global equity and capital markets, business competition and other general economic, political and market factors in North America and internationally. Many of these assumptions are based on factors and events that are not within the control of the Company and there is no assurance that they will prove to be correct. Other important factors and assumptions that could cause actual results to differ materially from those contained in forward-looking statements include, customer responses to new products, impairments of goodwill and other intangible assets, the Company's ability to execute strategic plans and changes to strategic plans, technological changes, breaches or failure of information systems and security (including cyber attacks), payments required under investment products, changes in local and international laws and regulations, changes in accounting policies and the effect of applying future accounting policy changes, unexpected judicial or regulatory proceedings, catastrophic events, continuity and availability of personnel and third party service providers, the Company's ability to complete strategic transactions and integrate acquisitions and unplanned material changes to the Company's facilities, customer and employee relations or credit arrangements. The reader is cautioned that the foregoing list of assumptions and factors is not exhaustive, and there may be other factors listed in other filings with securities regulators, including factors set out in the Company's 2016 Annual MD&A under "Risk Management and Control Practices" and "Summary of Critical Accounting Estimates", which, along with other filings, is available for review at www.sedar.com. The reader is also cautioned to consider these and other factors, uncertainties and potential events carefully and not to place undue reliance on forward-looking statements. Other than as specifically required by applicable law, the Company does not intend to update any forward-looking statements whether as a result of new information, future events or otherwise.
Cautionary note regarding Non-IFRS Financial Measures
This release contains some non-IFRS financial measures. Terms by which non-IFRS financial measures are identified include, but are not limited to, "operating earnings", "constant currency basis", "premiums and deposits", "sales", "assets under management", "assets under administration" and other similar expressions. Non-IFRS financial measures are used to provide management and investors with additional measures of performance to help assess results where no comparable IFRS measure exists. However, non-IFRS financial measures do not have standard meanings prescribed by IFRS and are not directly comparable to similar measures used by other companies. Refer to the appropriate reconciliations of these non-IFRS financial measures to measures prescribed by IFRS.
Second Quarter Conference Call
Lifeco's second quarter conference call and audio webcast will be held August 3, 2017 at 10:00 a.m. (ET). The call and webcast can be accessed through www.greatwestlifeco.com or by phone at:
- Participants in the Toronto area: 416-340-2216
- Participants from North America: 1-866-223-7781
- For International participants: Look up the dial-in information for your location at:
https://www.confsolutions.ca/ILT?oss=1P49R8662237781
A replay of the call will be available from August 3, 2017 to August 10, 2017, and can be accessed by calling 1-800-408-3053 or 905-694-9451 in Toronto (passcode: 7905788#). The archived webcast will be available on http://www.greatwestlifeco.com from August 3, 2017 to August 2, 2018.
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 six months ended |
|||||||||||||||
| June 30 |
March 31 |
June 30 |
June 30 |
June 30 |
||||||||||||
| Premiums and deposits: |
||||||||||||||||
| Net premium income (Life insurance, guaranteed |
||||||||||||||||
|
annuities and insured health products) |
$ |
7,772 |
$ |
9,365 |
$ |
6,871 |
$ |
17,137 |
$ |
13,886 |
||||||
| Policyholder deposits (segregated funds): |
||||||||||||||||
| Individual products |
4,142 |
3,897 |
3,213 |
8,039 |
6,902 |
|||||||||||
| Group products |
2,020 |
2,185 |
1,858 |
4,205 |
4,096 |
|||||||||||
| Self-funded premium equivalents (Administrative |
||||||||||||||||
| services only contracts)(1) |
720 |
716 |
707 |
1,436 |
1,405 |
|||||||||||
| Proprietary mutual funds and institutional deposits(1) |
13,767 |
17,386 |
15,522 |
31,153 |
31,876 |
|||||||||||
| Total premiums and deposits(1) |
28,421 |
33,549 |
28,171 |
61,970 |
58,165 |
|||||||||||
| Fee and other income |
1,381 |
1,305 |
1,231 |
2,686 |
2,485 |
|||||||||||
| Net policyholder benefits, dividends and experience |
||||||||||||||||
| refunds |
7,377 |
8,543 |
6,023 |
15,920 |
12,562 |
|||||||||||
| Earnings |
||||||||||||||||
| Net earnings - common shareholders |
$ |
585 |
$ |
591 |
$ |
671 |
$ |
1,176 |
$ |
1,291 |
||||||
| Adjusted net earnings, excluding restructuring costs - |
||||||||||||||||
| common shareholders(6) |
712 |
619 |
671 |
1,331 |
1,291 |
|||||||||||
| Per common share |
||||||||||||||||
| Basic earnings |
0.591 |
0.598 |
0.675 |
1.189 |
1.300 |
|||||||||||
| Adjusted basic earnings, excluding restructuring |
||||||||||||||||
| costs(6) |
0.719 |
0.627 |
0.675 |
1.345 |
1.300 |
|||||||||||
| Dividends paid |
0.367 |
0.367 |
0.346 |
0.734 |
0.692 |
|||||||||||
| Book value(2) |
19.95 |
19.99 |
19.02 |
|||||||||||||
| Return on common shareholders' equity(3) |
||||||||||||||||
| Net earnings |
13.0% |
13.6% |
14.0% |
|||||||||||||
| Adjusted net earnings, excluding restructuring costs(6) |
13.9% |
13.9% |
14.0% |
|||||||||||||
| Total assets |
$ |
409,773 |
$ |
405,632 |
$ |
390,251 |
||||||||||
| Proprietary mutual funds and institutional net assets(4) |
271,686 |
270,121 |
243,688 |
|||||||||||||
| Total assets under management(4) |
681,459 |
675,753 |
633,939 |
|||||||||||||
| Other assets under administration(5) |
627,633 |
620,064 |
549,878 |
|||||||||||||
| Total assets under administration |
$ |
1,309,092 |
$ |
1,295,817 |
$ |
1,183,817 |
||||||||||
| Total equity |
$ |
25,428 |
$ |
25,372 |
$ |
24,201 |
||||||||||
| (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) |
Certain comparative figures have been adjusted as described in note 33 to the Company's December 31, 2016 financial statements. |
| (3) |
Return on common shareholders' equity is detailed within the "Capital Allocation Methodology" section of the Company's June 30, 2017 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 of 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 volume, size and trends. |
| (6) |
Net earnings attributable to common shareholders include the impact of restructuring costs. The second quarter of 2017 included restructuring costs of $127, $126 related to the Canada segment and $1 related to the Europe segment. The first quarter of 2017 included restructuring costs of $28, $17 relating to the Europe segment and $11 relating to the United States segment. |
| CONSOLIDATED STATEMENTS OF EARNINGS (unaudited) |
|||||||||||||
| (in Canadian $ millions except per share amounts) |
|||||||||||||
| For the three months ended |
For the six months ended |
||||||||||||
| June 30 |
March 31 |
June 30 |
June 30 |
June 30 |
|||||||||
| 2017 |
2017 |
2016 |
2017 |
2016 |
|||||||||
| Income |
|||||||||||||
| Premium income |
|||||||||||||
| Gross premiums written |
$ |
8,792 |
$ |
10,484 |
$ |
7,834 |
$ |
19,276 |
$ |
15,760 |
|||
| Ceded premiums |
(1,020) |
(1,119) |
(963) |
(2,139) |
(1,874) |
||||||||
| Total net premiums |
7,772 |
9,365 |
6,871 |
17,137 |
13,886 |
||||||||
| Net investment income |
|||||||||||||
| Regular net investment income |
1,591 |
1,469 |
1,576 |
3,060 |
3,249 |
||||||||
| Changes in fair value through profit or loss |
304 |
735 |
3,129 |
1,039 |
5,539 |
||||||||
| Total net investment income |
1,895 |
2,204 |
4,705 |
4,099 |
8,788 |
||||||||
| Fee and other income |
1,381 |
1,305 |
1,231 |
2,686 |
2,485 |
||||||||
| 11,048 |
12,874 |
12,807 |
23,922 |
25,159 |
|||||||||
| Benefits and expenses |
|||||||||||||
| Policyholder benefits |
|||||||||||||
| Gross |
7,415 |
8,595 |
6,143 |
16,010 |
12,785 |
||||||||
| Ceded |
(500) |
(610) |
(501) |
(1,110) |
(973) |
||||||||
| Total net policyholder benefits |
6,915 |
7,985 |
5,642 |
14,900 |
11,812 |
||||||||
| Policyholder dividends and experience refunds |
462 |
558 |
381 |
1,020 |
750 |
||||||||
| Changes in insurance and investment contract |
|||||||||||||
| liabilities |
850 |
1,319 |
4,012 |
2,169 |
7,151 |
||||||||
| Total paid or credited to policyholders |
8,227 |
9,862 |
10,035 |
18,089 |
19,713 |
||||||||
| Commissions |
549 |
753 |
599 |
1,302 |
1,165 |
||||||||
| Operating and administrative expenses |
1,185 |
1,233 |
1,161 |
2,418 |
2,369 |
||||||||
| Premium taxes |
107 |
123 |
98 |
230 |
190 |
||||||||
| Financing charges |
79 |
76 |
75 |
155 |
153 |
||||||||
| Amortization of finite life intangible assets |
47 |
45 |
44 |
92 |
90 |
||||||||
| Restructuring expenses |
216 |
37 |
5 |
253 |
9 |
||||||||
| Earnings before income taxes |
638 |
745 |
790 |
1,383 |
1,470 |
||||||||
| Income taxes |
51 |
96 |
76 |
147 |
100 |
||||||||
| Net earnings before non-controlling interests |
587 |
649 |
714 |
1,236 |
1,370 |
||||||||
| Attributable to non-controlling interests |
(28) |
27 |
13 |
(1) |
18 |
||||||||
| Net earnings |
615 |
622 |
701 |
1,237 |
1,352 |
||||||||
| Preferred share dividends |
30 |
31 |
30 |
61 |
61 |
||||||||
| Net earnings - common shareholders |
$ |
585 |
$ |
591 |
$ |
671 |
$ |
1,176 |
$ |
1,291 |
|||
| Earnings per common share |
|||||||||||||
| Basic |
$ |
0.591 |
$ |
0.598 |
$ |
0.675 |
$ |
1.189 |
$ |
1.300 |
|||
| Diluted |
$ |
0.590 |
$ |
0.597 |
$ |
0.674 |
$ |
1.187 |
$ |
1.298 |
|||
| CONSOLIDATED BALANCE SHEETS (unaudited) |
||||||
| (in Canadian $ millions) |
||||||
| June 30 |
December 31 |
|||||
| 2017 |
2016 |
|||||
| Assets |
||||||
| Cash and cash equivalents |
$ |
3,398 |
$ |
3,259 |
||
| Bonds |
118,215 |
116,773 |
||||
| Mortgage loans |
22,301 |
21,651 |
||||
| Stocks |
8,435 |
8,665 |
||||
| Investment properties |
4,708 |
4,340 |
||||
| Loans to policyholders |
8,394 |
8,467 |
||||
| 165,451 |
163,155 |
|||||
| Funds held by ceding insurers |
10,317 |
10,781 |
||||
| Goodwill |
5,992 |
5,977 |
||||
| Intangible assets |
3,900 |
3,972 |
||||
| Derivative financial instruments |
463 |
528 |
||||
| Owner occupied properties |
653 |
649 |
||||
| Fixed assets |
293 |
304 |
||||
| Other assets |
2,359 |
2,263 |
||||
| Premiums in course of collection, accounts and interest receivable |
4,550 |
4,311 |
||||
| Reinsurance assets |
5,416 |
5,627 |
||||
| Current income taxes |
168 |
97 |
||||
| Deferred tax assets |
1,675 |
1,845 |
||||
| Investments on account of segregated fund policyholders |
208,536 |
200,403 |
||||
| Total assets |
$ |
409,773 |
$ |
399,912 |
||
| Liabilities |
||||||
| Insurance contract liabilities |
$ |
157,797 |
$ |
155,940 |
||
| Investment contract liabilities |
1,953 |
2,009 |
||||
| Debentures and other debt instruments |
5,531 |
5,980 |
||||
| Capital trust securities |
160 |
161 |
||||
| Funds held under reinsurance contracts |
336 |
320 |
||||
| Derivative financial instruments |
1,519 |
2,012 |
||||
| Accounts payable |
2,443 |
2,049 |
||||
| Other liabilities |
3,924 |
3,836 |
||||
| Current income taxes |
603 |
549 |
||||
| Deferred tax liabilities |
1,543 |
1,645 |
||||
| Investment and insurance contracts on account of segregated fund policyholders |
208,536 |
200,403 |
||||
| Total liabilities |
384,345 |
374,904 |
||||
| Equity |
||||||
| Non-controlling interests |
||||||
| Participating account surplus in subsidiaries |
2,753 |
2,782 |
||||
| Non-controlling interests in subsidiaries |
212 |
224 |
||||
| Shareholders' equity |
||||||
| Share capital |
||||||
| Preferred shares |
2,714 |
2,514 |
||||
| Common shares |
7,261 |
7,130 |
||||
| Accumulated surplus |
11,889 |
11,465 |
||||
| Accumulated other comprehensive income |
478 |
746 |
||||
| Contributed surplus |
121 |
147 |
||||
| Total equity |
25,428 |
25,008 |
||||
| Total liabilities and equity |
$ |
409,773 |
$ |
399,912 |
||
| Segmented Information (unaudited) |
|||||||||||||
| Consolidated Net Earnings |
|||||||||||||
| For the three months ended June 30, 2017 |
|||||||||||||
| Canada |
United States |
Europe |
Lifeco Corporate |
Total |
|||||||||
| Income |
|||||||||||||
| Total net premiums |
$ |
3,189 |
$ |
942 |
$ |
3,641 |
$ |
— |
$ |
7,772 |
|||
| Net investment income |
|||||||||||||
| Regular net investment income |
642 |
451 |
496 |
2 |
1,591 |
||||||||
| Changes in fair value through profit or loss |
282 |
274 |
(252) |
— |
304 |
||||||||
| Total net investment income |
924 |
725 |
244 |
2 |
1,895 |
||||||||
| Fee and other income |
399 |
636 |
346 |
— |
1,381 |
||||||||
| 4,512 |
2,303 |
4,231 |
2 |
11,048 |
|||||||||
| Benefits and expenses |
|||||||||||||
| Paid or credited to policyholders |
3,333 |
1,476 |
3,418 |
— |
8,227 |
||||||||
| Other (1) |
783 |
651 |
405 |
2 |
1,841 |
||||||||
| Financing charges |
31 |
37 |
10 |
1 |
79 |
||||||||
| Amortization of finite life intangible assets |
17 |
22 |
8 |
— |
47 |
||||||||
| Restructuring expenses |
215 |
— |
1 |
— |
216 |
||||||||
| Earnings (loss) before income taxes |
133 |
117 |
389 |
(1) |
638 |
||||||||
| Income taxes (recovery) |
(22) |
28 |
45 |
— |
51 |
||||||||
| Net earnings (loss) before non-controlling |
|||||||||||||
| interests |
155 |
89 |
344 |
(1) |
587 |
||||||||
| Non-controlling interests |
(31) |
3 |
— |
— |
(28) |
||||||||
| Net earnings (loss) |
186 |
86 |
344 |
(1) |
615 |
||||||||
| Preferred share dividends |
26 |
— |
4 |
— |
30 |
||||||||
| Net earnings (loss) before capital allocation |
160 |
86 |
340 |
(1) |
585 |
||||||||
| Impact of capital allocation |
25 |
(4) |
(19) |
(2) |
— |
||||||||
| Net earnings (loss) - common shareholders |
$ |
185 |
$ |
82 |
$ |
321 |
$ |
(3) |
$ |
585 |
|||
| (1) Includes commissions, operating and administrative expenses and premium taxes. |
|||||||||||||
| For the three months ended June 30, 2016 |
|||||||||||||
| Canada |
United States |
Europe |
Lifeco Corporate |
Total |
|||||||||
| Income |
|||||||||||||
| Total net premiums |
$ |
2,896 |
$ |
1,267 |
$ |
2,708 |
$ |
— |
$ |
6,871 |
|||
| Net investment income |
|||||||||||||
| Regular net investment income |
665 |
420 |
487 |
4 |
1,576 |
||||||||
| Changes in fair value through profit or loss |
940 |
526 |
1,663 |
— |
3,129 |
||||||||
| Total net investment income |
1,605 |
946 |
2,150 |
4 |
4,705 |
||||||||
| Fee and other income |
369 |
555 |
307 |
— |
1,231 |
||||||||
| 4,870 |
2,768 |
5,165 |
4 |
12,807 |
|||||||||
| Benefits and expenses |
|||||||||||||
| Paid or credited to policyholders |
3,632 |
1,996 |
4,407 |
— |
10,035 |
||||||||
| Other (1) |
833 |
645 |
374 |
6 |
1,858 |
||||||||
| Financing charges |
26 |
35 |
11 |
3 |
75 |
||||||||
| Amortization of finite life intangible assets |
17 |
20 |
7 |
— |
44 |
||||||||
| Restructuring expenses |
— |
4 |
1 |
— |
5 |
||||||||
| Earnings (loss) before income taxes |
362 |
68 |
365 |
(5) |
790 |
||||||||
| Income taxes (recovery) |
23 |
12 |
46 |
(5) |
76 |
||||||||
| Net earnings (loss) before non-controlling |
|||||||||||||
| interests |
339 |
56 |
319 |
— |
714 |
||||||||
| Non-controlling interests |
11 |
1 |
1 |
— |
13 |
||||||||
| Net earnings (loss) |
328 |
55 |
318 |
— |
701 |
||||||||
| Preferred share dividends |
26 |
— |
4 |
— |
30 |
||||||||
| Net earnings (loss) before capital allocation |
302 |
55 |
314 |
— |
671 |
||||||||
| Impact of capital allocation |
25 |
(2) |
(21) |
(2) |
— |
||||||||
| Net earnings (loss) - common shareholders |
$ |
327 |
$ |
53 |
$ |
293 |
$ |
(2) |
$ |
671 |
|||
| (1) Includes commissions, operating and administrative expenses and premium taxes. |
|||||||||||||
| For the six months ended June 30, 2017 |
|||||||||||||
| Canada |
United States |
Europe |
Lifeco Corporate |
Total |
|||||||||
| Income |
|||||||||||||
| Total net premiums |
$ |
6,484 |
$ |
2,171 |
$ |
8,482 |
$ |
— |
$ |
17,137 |
|||
| Net investment income |
|||||||||||||
| Regular net investment income |
1,255 |
906 |
898 |
1 |
3,060 |
||||||||
| Changes in fair value through profit or loss |
657 |
376 |
6 |
— |
1,039 |
||||||||
| Total net investment income |
1,912 |
1,282 |
904 |
1 |
4,099 |
||||||||
| Fee and other income |
786 |
1,230 |
670 |
— |
2,686 |
||||||||
| 9,182 |
4,683 |
10,056 |
1 |
23,922 |
|||||||||
| Benefits and expenses |
|||||||||||||
| Paid or credited to policyholders |
6,578 |
3,028 |
8,483 |
— |
18,089 |
||||||||
| Other (1) |
1,811 |
1,337 |
791 |
11 |
3,950 |
||||||||
| Financing charges |
61 |
71 |
22 |
1 |
155 |
||||||||
| Amortization of finite life intangible assets |
34 |
43 |
15 |
— |
92 |
||||||||
| Restructuring expenses |
215 |
17 |
21 |
— |
253 |
||||||||
| Earnings (loss) before income taxes |
483 |
187 |
724 |
(11) |
1,383 |
||||||||
| Income taxes (recovery) |
43 |
39 |
68 |
(3) |
147 |
||||||||
| Net earnings (loss) before non-controlling |
|||||||||||||
| interests |
440 |
148 |
656 |
(8) |
1,236 |
||||||||
| Non-controlling interests |
(2) |
2 |
(1) |
— |
(1) |
||||||||
| Net earnings (loss) |
442 |
146 |
657 |
(8) |
1,237 |
||||||||
| Preferred share dividends |
52 |
— |
9 |
— |
61 |
||||||||
| Net earnings (loss) before capital allocation |
390 |
146 |
648 |
(8) |
1,176 |
||||||||
| Impact of capital allocation |
50 |
(8) |
(38) |
(4) |
— |
||||||||
| Net earnings (loss) - common shareholders |
$ |
440 |
$ |
138 |
$ |
610 |
$ |
(12) |
$ |
1,176 |
|||
| (1) Includes commissions, operating and administrative expenses and premium taxes. |
|||||||||||||
| For the six months ended June 30, 2016 |
|||||||||||||
| Canada |
United States |
Europe |
Lifeco Corporate |
Total |
|||||||||
| Income |
|||||||||||||
| Total net premiums |
$ |
5,757 |
$ |
2,647 |
$ |
5,482 |
$ |
— |
$ |
13,886 |
|||
| Net investment income |
|||||||||||||
| Regular net investment income |
1,401 |
874 |
970 |
4 |
3,249 |
||||||||
| Changes in fair value through profit or loss |
1,477 |
1,007 |
3,055 |
— |
5,539 |
||||||||
| Total net investment income |
2,878 |
1,881 |
4,025 |
4 |
8,788 |
||||||||
| Fee and other income |
731 |
1,126 |
628 |
— |
2,485 |
||||||||
| 9,366 |
5,654 |
10,135 |
4 |
25,159 |
|||||||||
| Benefits and expenses |
|||||||||||||
| Paid or credited to policyholders |
6,933 |
4,108 |
8,672 |
— |
19,713 |
||||||||
| Other (1) |
1,650 |
1,331 |
733 |
10 |
3,724 |
||||||||
| Financing charges |
55 |
72 |
23 |
3 |
153 |
||||||||
| Amortization of finite life intangible assets |
33 |
42 |
15 |
— |
90 |
||||||||
| Restructuring expenses |
— |
7 |
2 |
— |
9 |
||||||||
| Earnings (loss) before income taxes |
695 |
94 |
690 |
(9) |
1,470 |
||||||||
| Income taxes (recovery) |
74 |
(28) |
59 |
(5) |
100 |
||||||||
| Net earnings (loss) before non-controlling |
|||||||||||||
| interests |
621 |
122 |
631 |
(4) |
1,370 |
||||||||
| Non-controlling interests |
16 |
2 |
— |
— |
18 |
||||||||
| Net earnings (loss) |
605 |
120 |
631 |
(4) |
1,352 |
||||||||
| Preferred share dividends |
52 |
— |
9 |
— |
61 |
||||||||
| Net earnings (loss) before capital allocation |
553 |
120 |
622 |
(4) |
1,291 |
||||||||
| Impact of capital allocation |
50 |
(4) |
(42) |
(4) |
— |
||||||||
| Net earnings (loss) - common shareholders |
$ |
603 |
$ |
116 |
$ |
580 |
$ |
(8) |
$ |
1,291 |
|||
| (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: Deirdre Neary, 416-552-3208, Email: [email protected]
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