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Great-West Lifeco reports third quarter 2019 earnings per common share of $0.79

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, MB , Oct. 30, 2019 /CNW/ - Great-West Lifeco Inc. (Lifeco or the Company) today announced net earnings attributable to common shareholders (net earnings) of $730 million , or $0.79 per common share, for the third quarter of 2019 compared to $689 million , or $0.70 per common share, for the same quarter last year.  Adjusted net earnings for the third quarter of 2018 were $745 million , or $0.75 per common share, which exclude restructuring costs of $56 million related to the Company's U.K. operations.

Earnings per common share (EPS) of $0.79 increased $0.04 from adjusted EPS of $0.75 in 2018, reflecting strong operating results as well as the sale, via indemnity reinsurance, of the U.S. individual life insurance and annuity business and the successful Substantial Issuer Bid share buyback, which were both completed in the second quarter of 2019.

"The Company delivered healthy EPS growth, reflecting solid operating performance in the quarter and strategic decisions made earlier in the year," said Paul Mahon , President and Chief Executive Officer, Great-West Lifeco Inc. "Business fundamentals remain sound, our capital position is strong and we continue to move forward with our strategic priorities."

Highlights

Sales of $41.9 billion up 22%

  • Sales for the third quarter of 2019 were $41.9 billion , up 22% from the third quarter of 2018, primarily driven by a 29% increase in the U.S., reflecting higher Empower Retirement sales and a 22% increase in Canada , driven by higher Group Customer sales in both Insurance and Wealth.


Capital strength and financial flexibility maintained

  • The Great-West Life Assurance Company reported a Life Insurance Capital Adequacy Test (LICAT) ratio of 139% at September 30, 2019 .
  • Adjusted return on equity, which excludes the net charge of $199 million relating to the U.S. sale in the second quarter of 2019, was 13.4% for the third quarter of 2019.


Consolidated assets under administration of $1.6 trillion

  • Consolidated assets under administration at September 30, 2019 were approximately $1.6 trillion , a 14% increase from December 31, 2018 .


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 Company.  For more information, please refer to the Company's 2019 third quarter Management's Discussion and Analysis (MD&A).

CANADA

  • Q3 Canada segment net earnings of $300 million – Net earnings for the third quarter of 2019 were $300 million compared to $315 million in the third quarter of 2018, a decrease of 5%. The decrease was primarily due to lower contributions from insurance contract liability basis changes, including the impact of actuarial standards updates, partially offset by higher contributions from investment experience.
  • Q3 Canada segment sales of $3.5 billion , up 22% – Canada sales in the third quarter of 2019 of $3.5 billion were up 22% from the third quarter of 2018 and 20% from the second quarter of 2019 due to higher large case sales in Group Customer.
  • Major milestone met for Great-West Life, London Life and Canada Life amalgamation – On October 3, 2019 , The Great-West Life Assurance Company (Great-West Life), London Life Insurance Company (London Life) and The Canada Life Assurance Company (Canada Life), announced that their respective voting policyholders have voted in favour of their amalgamation plans. Subject to regulatory approvals, the amalgamation is expected to be completed by January 1, 2020 . Upon approval, the companies will be combined into one single life insurance company operating under The Canada Life Assurance Company name. The amalgamation is expected to create operating efficiencies and simplify the Company's capital structure to allow for more efficient use of capital. Great-West Lifeco will remain the parent company, and the amalgamated company will retain all of the amalgamating companies' current corporate office locations.


UNITED STATES

  • Q3 U.S. segment net earnings of US$59 million – Net earnings for the third quarter of 2019 were US$59 million . Excluding the US$44 million third quarter 2018 contribution from the U.S. individual life insurance and annuity business, which was sold via indemnity reinsurance, net earnings increased US$16 million or 37% primarily due to improved Putnam net earnings driven by expense reduction initiatives.
  • Q3 U.S. Financial Services fee and other income up 11% – Fee and other income for the three months ended September 30, 2019 was US$280 million compared to US$252 million for the same quarter last year, an increase of 11%, primarily due to growth in Empower Retirement participants and assets.


EUROPE

  • Q3 Europe segment net earnings of $357 million – Net earnings for the third quarter of 2019 were $357 million , up 12% compared to adjusted net earnings of $319 million in the third quarter of 2018, which excluded restructuring charges of $56 million . The increase was primarily due to higher contributions from insurance contract liability basis changes and investment experience, partially offset by adverse morbidity experience in Ireland and the impact of currency movement.
  • U.K. operations advance transformation activities – As of September 30, 2019 , £11 million of pre-tax annualized expense reductions have been achieved relating to the U.K. restructuring program. The Company remains on track to achieve targeted annual expense reductions of £20 million pre-tax by the end of the fourth quarter of 2020 from various sources including systems and process improvements and a reduction in headcount.
  • Court approval received for Scottish Friendly sale – In 2018, Canada Life Limited, an indirect wholly-owned U.K. subsidiary of the Company, announced an agreement to sell a heritage block of individual policies to Scottish Friendly, comprised of unit-linked policies and non unit-linked policies. Subsequent to September 30, 2019 , on October 22, 2019 , the required court approval for the transfer of these policies has been received and this transfer is expected to be effective November 1, 2019 .
  • Brexit plans in place – Some market volatility continues with global economic uncertainty and the U.K. due to leave the European Union (EU). The Company's U.K. and other European businesses have plans which have been executed, or are ready to be executed, that will address and minimize the impact of Brexit under several different outcomes, including where the U.K. has no exit agreements with the EU.


QUARTERLY DIVIDENDS
The Board of Directors approved a quarterly dividend of $0.4130 per share on the common shares of Lifeco payable December 31, 2019 to shareholders of record at the close of business December 3, 2019 .

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 3, 2019

December 31, 2019

$0.36875

Series G

December 3, 2019

December 31, 2019

$0.3250

Series H

December 3, 2019

December 31, 2019

$0.30313

Series I

December 3, 2019

December 31, 2019

$0.28125

Series L

December 3, 2019

December 31, 2019

$0.353125

Series M

December 3, 2019

December 31, 2019

$0.3625

Series N

December 3, 2019

December 31, 2019

$0.1360

Series O

December 3, 2019

December 31, 2019

$0.185135

Series P

December 3, 2019

December 31, 2019

$0.3375

Series Q

December 3, 2019

December 31, 2019

$0.321875

Series R

December 3, 2019

December 31, 2019

$0.3000

Series S

December 3, 2019

December 31, 2019

$0.328125

Series T

December 3, 2019

December 31, 2019

$0.321875

 

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 INC.
Great-West Lifeco is an international financial services holding company with interests in life insurance, health insurance, retirement and investment services, asset management and reinsurance businesses. We operate in Canada , the United States and Europe under the brands Canada Life, Empower Retirement, Putnam Investments, and Irish Life .  At the end of 2018, our companies had approximately 24,200 employees, 240,000 advisor relationships, and thousands of distribution partners – all serving our more than 31 million customer relationships across these regions.

Great-West Lifeco and its companies have approximately $1.6 trillion in consolidated assets under administration as at September 30, 2019 and are members of the Power Financial Corporation group of companies. Great-West Lifeco trades on the Toronto Stock Exchange (TSX) under the ticker symbol GWO. To learn more, visit greatwestlifeco.com.

Basis of presentation
The condensed consolidated interim unaudited 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 information.  Forward-looking information includes 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 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, expected capital management activities and use of capital, expected cost reductions and savings and the impact of regulatory developments on the Company's business strategy and growth objectives.  Forward-looking statements are based on expectations, forecasts, estimates, 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 2018 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 information.  Other than as specifically required by applicable law, the Company does not intend to update any forward-looking information 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", "adjusted net earnings", "adjusted net earnings (US$)", "adjusted net earnings per common share", "adjusted return on equity", "core net earnings", "constant currency basis", "impact of currency movement", "premiums and deposits", "pre-tax operating margin", "return on equity – adjusted net earnings", "sales", "assets under management" and "assets under administration".  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 where applicable.

Third Quarter Conference Call
Lifeco's third quarter conference call and audio webcast will be held October 31, 2019 at 10 a.m. (ET) .  The call and webcast can be accessed through greatwestlifeco.com/news-events/events or by phone at:

  • Participants in the Toronto area: 416-340-2218
  • Participants from North America : 1-800-377-0758


A replay of the call will be available from October 31, 2019 to November 30, 2019 and can be accessed by calling 1-800-408-3053 or 905-694-9451 in Toronto (passcode: 4233177#).  The archived webcast will be available on greatwestlifeco.com.

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
2019

June 30
2019

September 30
2018


September 30
2019

September 30
2018

Earnings







Net earnings - common shareholders

$

730

$

459

$

689


$

1,846

$

2,251

Adjustments(1)(8)

199

56


199

56

Adjusted net earnings - common shareholders(1)

730

658

745


2,045

2,307

Per common share







Basic earnings

0.786

0.489

0.697


1.940

2.277

Adjusted basic earnings, excluding adjustments(1)

0.786

0.701

0.754


2.148

2.333

Dividends paid

0.413

0.413

0.389


1.239

1.167

Book value

21.02

20.84

21.25




Return on common shareholders' equity(2)







Net earnings

12.4%

12.0%

12.8%




Adjusted net earnings(3)

13.4%

13.2%

14.7%











Premiums and deposits







 Net premium income (Life insurance, guaranteed







 annuities and insured health products)(8)

$

9,324

$

(3,887)

$

10,337


$

15,032

$

26,416

Policyholder deposits (Segregated funds):







 Individual products

4,146

3,723

3,833


11,501

11,963

 Group products

1,999

1,732

1,790


5,825

6,166

Self-funded premium equivalents (Administrative







 services only contracts)(4)

813

830

744


2,454

2,266

Proprietary mutual funds and institutional deposits(4)

20,135

17,993

17,878


62,841

54,868

Add back:  U.S. Individual Life Insurance & Annuity







Business - initial reinsurance ceded premiums(4)(8)

13,889


13,889

Total premiums and deposits(4)

36,417

34,280

34,582


111,542

101,679

Fee and other income(8)

1,496

2,591

1,483


5,566

4,399

Net policyholder benefits, dividends and







experience refunds

8,468

8,957

7,653


26,412

23,070











Total assets

$

446,626

$

441,897

$

429,082




Proprietary mutual funds and institutional net










assets(5)

308,425

305,252

293,766




Total assets under management(5)

755,051

747,149

722,848




Other assets under administration(6)

841,700

820,808

718,410




Total assets under administration

$

1,596,751

$

1,567,957

$

1,441,258




Total equity

$

25,157

$

24,955

$

26,624




The Great-West Life Assurance Company







consolidated Life Insurance Capital Adequacy
Test Ratio(7)

139%

136%

134%






(1)

Adjusted net earnings attributable to common shareholders and adjusted net earnings per common share (EPS) are non-IFRS financial measures of earnings
performance.  In the second quarter of 2019, the adjustment was a net charge of $199 relating to the sale, via indemnity reinsurance, of the U.S. individual life
insurance and annuity business (refer to footnote 8 below for the impacts to the Consolidated Statements of Earnings).  In the third quarter of 2018, the adjustment
was $56 of restructuring costs relating to the Company's U.K. operations.

(2)

Return on common shareholders' equity is detailed within the "Capital Allocation Methodology" section of the Company's September 30, 2019 Management's
Discussion and Analysis.

(3)

Return on common shareholders' equity - adjusted net earnings (a non-IFRS measure) is adjusted for the impact of the net charge on the sale, via indemnity
reinsurance, of the U.S. individual life insurance and annuity business, U.S. tax reform, the net charge on the sale of an equity investment and restructuring costs.
For further details on this measure, refer to the "Capital Allocation Methodology" section of the Company's September 30, 2019 Management's Discussion and
Analysis.

(4)

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.  The Company excludes ceded premiums
relating to the sale, via indemnity reinsurance, of the U.S. individual life insurance and annuity business.  Total premiums and deposits (a non-IFRS financial
measure) provides useful information as it is an indicator of top line growth.

(5)

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.

(6)

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.

(7)

The Life Insurance Capital Adequacy Test (LICAT) ratio is based on the consolidated results of The Great-West Life Assurance Company, Lifeco's major Canadian
operating subsidiary. Refer to the "Capital Management and Adequacy" section of the Company's September 30, 2019 Management's Discussion and Analysis
for additional details.

(8)

Following the sale, via indemnity reinsurance, of the U.S. individual life insurance and annuity business to Protective Life on June 1, 2019, the Company recorded
a net loss of $199 (U.S. $148) related to the transaction.  Additionally, certain post-closing contingencies exist that may result in additional payments to Lifeco,
which could impact net earnings during the fourth quarter of 2019.  For the three months ended June 30, 2019 and nine months ended September 30, 2019, the
impacts to the Consolidated Statements of Earnings are outlined in the table below:






Impact on Consolidated Statements of Earnings of reinsurance of U.S. individual life insurance and annuity business:



Net premiums (initial ceded premiums)

$

(13,889)


Fee and other income (initial ceding commission)

1,080


Net investment income

219


Total paid or credited to policyholders

12,463


Operating, administrative and other expenses

(120)


Total pre-tax net loss per condensed consolidated interim unaudited financial statements (note 3)

(247)


Income taxes

48


Total after-tax net loss

$

(199)




 

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


2019

2019

2018


2019

2018








Income







Premium income







Gross premiums written

$

10,660

$

11,148

$

11,408


$

32,511

$

29,713

Ceded premiums

(1,336)

(15,035)

(1,071)


(17,479)

(3,297)

Total net premiums

9,324

(3,887)

10,337


15,032

26,416

Net investment income







Regular net investment income

1,452

1,797

1,578


4,699

4,726

Changes in fair value through profit or







loss

2,102

2,245

(1,371)


8,712

(3,208)

Total net investment income

3,554

4,042

207


13,411

1,518

Fee and other income

1,496

2,591

1,483


5,566

4,399


14,374

2,746

12,027


34,009

32,333

Benefits and expenses







Policyholder benefits







Gross

8,878

9,214

7,882


27,256

23,620

Ceded

(762)

(672)

(625)


(2,051)

(1,846)

Total net policyholder benefits

8,116

8,542

7,257


25,205

21,774

Policyholder dividends and experience







refunds

352

415

396


1,207

1,296

Changes in insurance and investment







contract liabilities

2,972

(8,987)

1,393


(1,090)

312

Total paid or credited to policyholders

11,440

(30)

9,046


25,322

23,382















Commissions

571

598

611


1,779

1,801

Operating and administrative expenses

1,258

1,374

1,244


3,933

3,722

Premium taxes

123

125

122


378

367

Financing charges

70

72

69


214

151

Amortization of finite life intangible assets

57

54

54


164

153

Restructuring expenses

67


67

Earnings before income taxes

855

553

814


2,219

2,690

Income taxes

47

53

107


230

337

Net earnings before non-controlling







interests

808

500

707


1,989

2,353

Attributable to non-controlling interests

45

7

(16)


43

2

Net earnings

763

493

723


1,946

2,351

Preferred share dividends

33

34

34


100

100

Net earnings - common shareholders

$

730

$

459

$

689


$

1,846

$

2,251








Earnings per common share







Basic

$

0.786

$

0.489

$

0.697


$

1.940

$

2.277

Diluted

$

0.785

$

0.489

$

0.697


$

1.939

$

2.275

 

CONSOLIDATED BALANCE SHEETS (unaudited)

(in Canadian $ millions)






September 30

December 31


2019

2018

Assets



Cash and cash equivalents

$

3,853

$

4,168

Bonds

115,893

124,862

Mortgage loans

24,141

25,014

Stocks

10,086

9,290

Investment properties

5,542

5,218

Loans to policyholders

8,717

8,929


168,232

177,481

Assets held for sale

876

897

Funds held by ceding insurers

8,791

9,251

Goodwill

6,490

6,548

Intangible assets

3,875

3,976

Derivative financial instruments

694

417

Owner occupied properties

733

731

Fixed assets

452

448

Other assets   

3,051

2,567

Premiums in course of collection, accounts and interest receivable

5,321

5,202

Reinsurance assets

21,195

6,126

Current income taxes

264

218

Deferred tax assets

876

981

Investments on account of segregated fund policyholders

222,604

209,527

Investments on account of segregated fund policyholders held for sale

3,172

3,319

Total assets

$

446,626

$

427,689



Liabilities


Insurance contract liabilities

$

174,433

$

166,720

Investment contract liabilities

1,721

1,711

Liabilities held for sale

876

897

Debentures and other debt instruments

6,316

6,459

Funds held under reinsurance contracts

1,410

1,367

Derivative financial instruments

1,483

1,562

Accounts payable

3,070

3,262

Other liabilities                             

4,749

3,855

Current income taxes

508

402

Deferred tax liabilities

1,127

1,210

Investment and insurance contracts on account of segregated fund policyholders

222,604

209,527

Investment and insurance contracts on account of segregated fund policyholders held for sale

3,172

3,319

Total liabilities

421,469

400,291



Equity


Non-controlling interests


Participating account surplus in subsidiaries

2,796

2,737

Non-controlling interests in subsidiaries

121

138

Shareholders' equity


Share capital


Preferred shares

2,714

2,714

Common shares

5,633

7,283

Accumulated surplus

13,578

13,342

Accumulated other comprehensive income

149

1,045

Contributed surplus

166

139

Total equity

25,157

27,398

Total liabilities and equity

$

446,626

$

427,689

 

Segmented Information (unaudited)


Consolidated Net Earnings


For the three months ended September 30, 2019


Canada

United

States

Europe

Lifeco

Corporate

Total

Income






Total net premiums

$

3,606

$

966

$

4,752

$

$

9,324

Net investment income






Regular net investment income

732

319

402

(1)

1,452

Changes in fair value through profit or loss

366

201

1,535

2,102

Total net investment income

1,098

520

1,937

(1)

3,554

Fee and other income

447

665

384

1,496


5,151

2,151

7,073

(1)

14,374







Benefits and expenses






Paid or credited to policyholders

3,867

1,362

6,211

11,440

Other (1)

850

655

444

3

1,952

Financing charges

32

28

9

1

70

Amortization of finite life intangible assets

24

22

11

57

Earnings (loss) before income taxes

378

84

398

(5)

855

Income taxes (recovery)

31

7

11

(2)

47

Net earnings (loss) before non-controlling  






interests

347

77

387

(3)

808

Non-controlling interests

47

(3)

1

45

Net earnings (loss)

300

80

386

(3)

763

Preferred share dividends

28

5

33

Net earnings (loss) before capital allocation

272

80

381

(3)

730

Impact of capital allocation

28

(3)

(24)

(1)

Net earnings (loss) - common shareholders

$

300

$

77

$

357

$

(4)

$

730



(1)

Includes commissions, operating and administrative expenses and premium taxes.

 

 

For the three months ended September 30, 2018


Canada

United

States

Europe

Lifeco

Corporate

Total

Income






Total net premiums

$

3,266

$

1,148

$

5,923

$

$

10,337

Net investment income






Regular net investment income

663

460

451

4

1,578

Changes in fair value through profit or loss

(646)

(160)

(565)

(1,371)

Total net investment income

17

300

(114)

4

207

Fee and other income

437

673

373

1,483


3,720

2,121

6,182

4

12,027







Benefits and expenses






Paid or credited to policyholders

2,468

1,233

5,345

9,046

Other (1)

841

695

436

5

1,977

Financing charges

32

28

8

1

69

Amortization of finite life intangible assets

20

24

10

54

Restructuring expenses

67

67

Earnings (loss) before income taxes

359

141

316

(2)

814

Income taxes (recovery)

65

24

19

(1)

107

Net earnings (loss) before non-controlling  







interests

294

117

297

(1)

707

Non-controlling interests

(19)

2

1

(16)

Net earnings (loss)

313

115

296

(1)

723

Preferred share dividends

29

5

34

Net earnings (loss) before capital allocation

284

115

291

(1)

689

Impact of capital allocation

31

(2)

(28)

(1)

Net earnings (loss) - common shareholders

$

315

$

113

$

263

$

(2)

$

689



(1)

Includes commissions, operating and administrative expenses and premium taxes.

 

For the nine months ended September 30, 2019


Canada

United

States(2)

Europe

Lifeco

Corporate

Total

Income






Total net premiums

$

9,918

$

(10,647)

$

15,761

$

$

15,032

Net investment income






Regular net investment income

2,105

1,432

1,161

1

4,699

Changes in fair value through profit or loss

3,602

1,434

3,676

8,712

Total net investment income

5,707

2,866

4,837

1

13,411

Fee and other income

1,309

3,088

1,169

5,566


16,934

(4,693)

21,767

1

34,009







Benefits and expenses






Paid or credited to policyholders

13,157

(7,049)

19,214

25,322

Other (1)

2,570

2,132

1,372

16

6,090

Financing charges

96

88

27

3

214

Amortization of finite life intangible assets

67

62

35

164

Earnings (loss) before income taxes

1,044

74

1,119

(18)

2,219

Income taxes (recovery)

137

4

94

(5)

230

Net earnings (loss) before non-controlling






interests

907

70

1,025

(13)

1,989

Non-controlling interests

43

43

Net earnings (loss)

864

70

1,025

(13)

1,946

Preferred share dividends

85

15

100

Net earnings (loss) before capital allocation

779

70

1,010

(13)

1,846

Impact of capital allocation

84

(10)

(72)

(2)

Net earnings (loss) - common shareholders

$

863

$

60

$

938

$

(15)

$

1,846



(1) 

Includes commissions, operating and administrative expenses and premium taxes.

(2) 

Includes the loss on the reinsurance transaction with Protective Life of $247 ($199 after-tax) as described in note 3 to the Company's September
30, 2019 condensed consolidated interim unaudited financial statements.

 

For the nine months ended September 30, 2018


Canada

United

States

Europe

Lifeco

Corporate

Total

Income






Total net premiums

$

9,558

$

3,116

$

13,742

$

$

26,416

Net investment income






Regular net investment income

1,941

1,363

1,413

9

4,726

Changes in fair value through profit or loss

(731)

(1,000)

(1,477)

(3,208)

Total net investment income

1,210

363

(64)

9

1,518

Fee and other income

1,308

1,959

1,132

4,399


12,076

5,438

14,810

9

32,333







Benefits and expenses






Paid or credited to policyholders

8,291

2,879

12,212

23,382

Other (1)

2,469

2,055

1,351

15

5,890

Financing charges

96

26

28

1

151

Amortization of finite life intangible assets

60

67

26

153

Restructuring expenses

67

67

Earnings (loss) before income taxes

1,160

411

1,126

(7)

2,690

Income taxes (recovery)

203

68

68

(2)

337

Net earnings (loss) before non-controlling






interests

957

343

1,058

(5)

2,353

Non-controlling interests

(2)

3

1

2

Net earnings (loss)

959

340

1,057

(5)

2,351

Preferred share dividends

86

14

100

Net earnings (loss) before capital allocation

873

340

1,043

(5)

2,251

Impact of capital allocation

92

(7)

(81)

(4)

Net earnings (loss) - common shareholders

$

965

$

333

$

962

$

(9)

$

2,251



(1)

Includes commissions, operating and administrative expenses and premium taxes.

 

SOURCE Great-West Lifeco Inc.


View original content: http://www.newswire.ca/en/releases/archive/October2019/30/c6371.html