Canada NewsWire
TORONTO, July 31, 2019
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, July 31, 2019 /CNW/ - Great-West Lifeco Inc. (Lifeco or the Company) today announced net earnings attributable to common shareholders (net earnings) of $459 million or $0.49 per common share for the second quarter of 2019 compared to $831 million or $0.84 per common share for the same quarter last year. Lifeco's net earnings for the second quarter of 2019 included a net charge of $199 million relating to the sale, via indemnity reinsurance, of the U.S. individual life insurance and annuity business, which reduced earnings per common share by $0.21.
Adjusted net earnings, which exclude this charge, were $658 million or $0.70 per common share. Adjusted net earnings in the second quarter of 2019 decreased $173 million from the prior year reflecting lower contributions from insurance contract liability basis changes and the impact of U.K. retail related investment impairments. In addition, Lifeco's net earnings for the second quarter of 2018 included a net positive impact of $60 million, or $0.06 per common share, arising from refinancing in the U.S. segment.
"We continued to make progress on our strategic priorities in the quarter and business fundamentals remained solid despite the decline in net earnings," said Paul Mahon, President and Chief Executive Officer, Great-West Lifeco Inc. "We continue to invest in new products and digital capabilities to drive better customer and advisor experiences and our capital position remains strong."
Highlights
Sales up $1.2 billion to $34.3 billion
U.S. Individual Markets business sale closed on June 1, 2019
Capital strength and financial flexibility maintained
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 second quarter Management's Discussion and Analysis (MD&A).
CANADA
UNITED STATES
EUROPE
QUARTERLY DIVIDENDS
The Board of Directors approved a quarterly dividend of $0.4130 per share on the common shares of Lifeco payable September 30, 2019 to shareholders of record at the close of business August 30, 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 | August 30, 2019 | September 30, 2019 | $0.36875 |
Series G | August 30, 2019 | September 30, 2019 | $0.3250 |
Series H | August 30, 2019 | September 30, 2019 | $0.30313 |
Series I | August 30, 2019 | September 30, 2019 | $0.28125 |
Series L | August 30, 2019 | September 30, 2019 | $0.353125 |
Series M | August 30, 2019 | September 30, 2019 | $0.3625 |
Series N | August 30, 2019 | September 30, 2019 | $0.1360 |
Series O | August 30, 2019 | September 30, 2019 | $0.188223 |
Series P | August 30, 2019 | September 30, 2019 | $0.3375 |
Series Q | August 30, 2019 | September 30, 2019 | $0.321875 |
Series R | August 30, 2019 | September 30, 2019 | $0.3000 |
Series S | August 30, 2019 | September 30, 2019 | $0.328125 |
Series T | August 30, 2019 | September 30, 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
Great-West Lifeco Inc. 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 and Europe 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), Putnam Investments, LLC (Putnam) and Irish Life Group Limited (Irish Life). Lifeco and its companies have approximately $1.6 trillion in consolidated assets under administration and are members of the Power Financial Corporation group of companies. Great-West Lifeco Inc. 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 and expected cost reductions and savings. 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.
Second Quarter Conference Call
Lifeco's second quarter conference call and audio webcast will be held July 31, 2019 at 2:30 p.m. (ET). The call and webcast can be accessed through greatwestlifeco.com/news-events/events or by phone at:
A replay of the call will be available from July 31, 2019 to August 31, 2019 and can be accessed by calling 1-800-408-3053 or 905-694-9451 in Toronto (passcode: 4533177#). 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 six months ended | ||||||||||
June 30 | March 31 | June 30 | June 30 | June 30 | |||||||
Earnings | |||||||||||
Net earnings - common shareholders | $ | 459 | $ | 657 | $ | 831 | $ | 1,116 | $ | 1,562 | |
Adjustments(1)(8) | 199 | — | — | 199 | — | ||||||
Adjusted net earnings - common shareholders(1) | 658 | 657 | 831 | 1,315 | 1,562 | ||||||
Per common share | |||||||||||
Basic earnings | 0.489 | 0.665 | 0.839 | 1.159 | 1.579 | ||||||
Adjusted basic earnings, excluding adjustments(1) | 0.701 | 0.665 | 0.839 | 1.365 | 1.579 | ||||||
Dividends paid | 0.413 | 0.413 | 0.389 | 0.826 | 0.778 | ||||||
Book value | 20.84 | 22.07 | 21.22 | ||||||||
Return on common shareholders' equity(2) | |||||||||||
Net earnings | 12.0 % | 13.5 % | 12.5 % | ||||||||
Adjusted net earnings(3) | 13.2 % | 13.7 % | 14.2 % | ||||||||
Premiums and deposits | |||||||||||
Net premium income (Life insurance, guaranteed annuities | |||||||||||
and insured health products)(8) | $ | (3,887) | $ | 9,595 | $ | 7,905 | $ | 5,708 | $ | 16,079 | |
Policyholder deposits (Segregated funds): | |||||||||||
Individual products | 3,723 | 3,632 | 4,142 | 7,355 | 8,130 | ||||||
Group products | 1,732 | 2,094 | 1,954 | 3,826 | 4,376 | ||||||
Self-funded premium equivalents (Administrative services | |||||||||||
only contracts)(4) | 830 | 811 | 774 | 1,641 | 1,522 | ||||||
Proprietary mutual funds and institutional deposits(4) | 17,993 | 24,713 | 19,196 | 42,706 | 36,990 | ||||||
Add back: U.S. Individual Insurance & Annuity Business - | |||||||||||
initial reinsurance ceded premiums(8) | 13,889 | — | — | 13,889 | — | ||||||
Total premiums and deposits(4) | 34,280 | 40,845 | 33,971 | 75,125 | 67,097 | ||||||
Fee and other income(8) | 2,591 | 1,479 | 1,483 | 4,070 | 2,916 | ||||||
Net policyholder benefits, dividends and experience | |||||||||||
refunds | 8,957 | 8,987 | 7,588 | 17,944 | 15,417 | ||||||
Total assets | $ | 441,897 | $ | 442,492 | $ | 430,695 | |||||
Proprietary mutual funds and institutional net assets(5) | 305,252 | 304,230 | 294,890 | ||||||||
Total assets under management(5) | 747,149 | 746,722 | 725,585 | ||||||||
Other assets under administration(6) | 820,808 | 804,202 | 697,680 | ||||||||
Total assets under administration | $ | 1,567,957 | $ | 1,550,924 | $ | 1,423,265 | |||||
Total equity | $ | 24,955 | $ | 27,400 | $ | 26,620 | |||||
The Great-West Life Assurance Company consolidated | |||||||||||
Life Insurance Capital Adequacy Test Ratio(7) | 136 % | 140 % | 133 % | ||||||||
(1) | Adjusted net earnings attributable to common shareholders and adjusted net earnings per common share (EPS) are non-IFRS financial measures of earnings |
(2) | Return on common shareholders' equity is detailed within the "Capital Allocation Methodology" section of the Company's June 30, 2019 Management's Discussion |
(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 |
(4) | In addition to premiums and deposits reported in the financial statements, the Company includes premium equivalents on self-funded group insurance administrative |
(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 |
(6) | Other assets under administration (a non-IFRS financial measure) includes assets where the Company only provides administration services for which the Company |
(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 |
(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 |
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 six months ended | ||||||||||
June 30 | March 31 | June 30 | June 30 | June 30 | |||||||
2019 | 2019 | 2018 | 2019 | 2018 | |||||||
Income | |||||||||||
Premium income | |||||||||||
Gross premiums written | $ | 11,148 | $ | 10,703 | $ | 9,012 | $ | 21,851 | $ | 18,305 | |
Ceded premiums | (15,035) | (1,108) | (1,107) | (16,143) | (2,226) | ||||||
Total net premiums | (3,887) | 9,595 | 7,905 | 5,708 | 16,079 | ||||||
Net investment income | |||||||||||
Regular net investment income | 1,797 | 1,450 | 1,575 | 3,247 | 3,148 | ||||||
Changes in fair value through profit or | |||||||||||
loss | 2,245 | 4,365 | (350) | 6,610 | (1,837) | ||||||
Total net investment income | 4,042 | 5,815 | 1,225 | 9,857 | 1,311 | ||||||
Fee and other income | 2,591 | 1,479 | 1,483 | 4,070 | 2,916 | ||||||
2,746 | 16,889 | 10,613 | 19,635 | 20,306 | |||||||
Benefits and expenses | |||||||||||
Policyholder benefits | |||||||||||
Gross | 9,214 | 9,164 | 7,742 | 18,378 | 15,738 | ||||||
Ceded | (672) | (617) | (596) | (1,289) | (1,221) | ||||||
Total net policyholder benefits | 8,542 | 8,547 | 7,146 | 17,089 | 14,517 | ||||||
Policyholder dividends and experience | |||||||||||
refunds | 415 | 440 | 442 | 855 | 900 | ||||||
Changes in insurance and investment | |||||||||||
contract liabilities | (8,987) | 4,925 | (32) | (4,062) | (1,081) | ||||||
Total paid or credited to policyholders | (30) | 13,912 | 7,556 | 13,882 | 14,336 | ||||||
Commissions | 598 | 610 | 596 | 1,208 | 1,190 | ||||||
Operating and administrative expenses | 1,374 | 1,301 | 1,241 | 2,675 | 2,478 | ||||||
Premium taxes | 125 | 130 | 124 | 255 | 245 | ||||||
Financing charges | 72 | 72 | 11 | 144 | 82 | ||||||
Amortization of finite life intangible assets | 54 | 53 | 50 | 107 | 99 | ||||||
Earnings before income taxes | 553 | 811 | 1,035 | 1,364 | 1,876 | ||||||
Income taxes | 53 | 130 | 153 | 183 | 230 | ||||||
Net earnings before non-controlling | |||||||||||
interests | 500 | 681 | 882 | 1,181 | 1,646 | ||||||
Attributable to non-controlling interests | 7 | (9) | 18 | (2) | 18 | ||||||
Net earnings | 493 | 690 | 864 | 1,183 | 1,628 | ||||||
Preferred share dividends | 34 | 33 | 33 | 67 | 66 | ||||||
Net earnings - common shareholders | $ | 459 | $ | 657 | $ | 831 | $ | 1,116 | $ | 1,562 | |
Earnings per common share | |||||||||||
Basic | $ | 0.489 | $ | 0.665 | $ | 0.839 | $ | 1.159 | $ | 1.579 | |
Diluted | $ | 0.489 | $ | 0.665 | $ | 0.839 | $ | 1.158 | $ | 1.578 |
CONSOLIDATED BALANCE SHEETS (unaudited) | ||||
June 30 | December 31 | |||
2019 | 2018 | |||
Assets | ||||
Cash and cash equivalents | $ | 3,835 | $ | 4,168 |
Bonds | 113,627 | 124,862 | ||
Mortgage loans | 23,605 | 25,014 | ||
Stocks | 9,833 | 9,290 | ||
Investment properties | 5,416 | 5,218 | ||
Loans to policyholders | 8,917 | 8,929 | ||
165,233 | 177,481 | |||
Assets held for sale | 857 | 897 | ||
Funds held by ceding insurers | 8,959 | 9,251 | ||
Goodwill | 6,492 | 6,548 | ||
Intangible assets | 3,866 | 3,976 | ||
Derivative financial instruments | 655 | 417 | ||
Owner occupied properties | 732 | 731 | ||
Fixed assets | 452 | 448 | ||
Other assets | 2,956 | 2,567 | ||
Premiums in course of collection, accounts and interest receivable | 5,718 | 5,202 | ||
Reinsurance assets | 20,479 | 6,126 | ||
Current income taxes | 222 | 218 | ||
Deferred tax assets | 906 | 981 | ||
Investments on account of segregated fund policyholders | 221,092 | 209,527 | ||
Investments on account of segregated fund policyholders held for sale | 3,278 | 3,319 | ||
Total assets | $ | 441,897 | $ | 427,689 |
Liabilities | ||||
Insurance contract liabilities | $ | 171,490 | $ | 166,720 |
Investment contract liabilities | 1,714 | 1,711 | ||
Liabilities held for sale | 857 | 897 | ||
Debentures and other debt instruments | 6,331 | 6,459 | ||
Funds held under reinsurance contracts | 1,381 | 1,367 | ||
Derivative financial instruments | 1,186 | 1,562 | ||
Accounts payable | 3,401 | 3,262 | ||
Other liabilities | 4,547 | 3,855 | ||
Current income taxes | 508 | 402 | ||
Deferred tax liabilities | 1,157 | 1,210 | ||
Investment and insurance contracts on account of segregated fund policyholders | 221,092 | 209,527 | ||
Investment and insurance contracts on account of segregated fund policyholders held for sale | 3,278 | 3,319 | ||
Total liabilities | 416,942 | 400,291 | ||
Equity | ||||
Non-controlling interests | ||||
Participating account surplus in subsidiaries | 2,756 | 2,737 | ||
Non-controlling interests in subsidiaries | 125 | 138 | ||
Shareholders' equity | ||||
Share capital | ||||
Preferred shares | 2,714 | 2,714 | ||
Common shares | 5,632 | 7,283 | ||
Accumulated surplus | 13,231 | 13,342 | ||
Accumulated other comprehensive income | 337 | 1,045 | ||
Contributed surplus | 160 | 139 | ||
Total equity | 24,955 | 27,398 | ||
Total liabilities and equity | $ | 441,897 | $ | 427,689 |
Segmented Information (unaudited) | ||||||||||
Consolidated Net Earnings | ||||||||||
For the three months ended June 30, 2019 | ||||||||||
Canada | United States(2) | Europe | Lifeco Corporate | Total | ||||||
Income | ||||||||||
Total net premiums | $ | 3,225 | $ | (12,879) | $ | 5,767 | $ | — | $ | (3,887) |
Net investment income | ||||||||||
Regular net investment income | 717 | 644 | 433 | 3 | 1,797 | |||||
Changes in fair value through profit or loss | 954 | 567 | 724 | — | 2,245 | |||||
Total net investment income | 1,671 | 1,211 | 1,157 | 3 | 4,042 | |||||
Fee and other income | 440 | 1,764 | 387 | — | 2,591 | |||||
5,336 | (9,904) | 7,311 | 3 | 2,746 | ||||||
Benefits and expenses | ||||||||||
Paid or credited to policyholders | 4,118 | (10,630) | 6,482 | — | (30) | |||||
Other (1) | 843 | 791 | 455 | 8 | 2,097 | |||||
Financing charges | 32 | 29 | 9 | 2 | 72 | |||||
Amortization of finite life intangible assets | 22 | 20 | 12 | — | 54 | |||||
Earnings (loss) before income taxes | 321 | (114) | 353 | (7) | 553 | |||||
Income taxes (recovery) | 36 | (23) | 42 | (2) | 53 | |||||
Net earnings (loss) before non-controlling | ||||||||||
interests | 285 | (91) | 311 | (5) | 500 | |||||
Non-controlling interests | 4 | 3 | — | — | 7 | |||||
Net earnings (loss) | 281 | (94) | 311 | (5) | 493 | |||||
Preferred share dividends | 29 | — | 5 | — | 34 | |||||
Net earnings (loss) before capital allocation | 252 | (94) | 306 | (5) | 459 | |||||
Impact of capital allocation | 28 | (4) | (24) | — | — | |||||
Net earnings (loss) - common shareholders | $ | 280 | $ | (98) | $ | 282 | $ | (5) | $ | 459 |
(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 |
For the three months ended June 30, 2018 | ||||||||||
Canada | United States | Europe | Lifeco Corporate | Total | ||||||
Income | ||||||||||
Total net premiums | $ | 3,141 | $ | 894 | $ | 3,870 | $ | — | $ | 7,905 |
Net investment income | ||||||||||
Regular net investment income | 666 | 462 | 445 | 2 | 1,575 | |||||
Changes in fair value through profit or loss | 249 | (260) | (339) | — | (350) | |||||
Total net investment income | 915 | 202 | 106 | 2 | 1,225 | |||||
Fee and other income | 433 | 655 | 395 | — | 1,483 | |||||
4,489 | 1,751 | 4,371 | 2 | 10,613 | ||||||
Benefits and expenses | ||||||||||
Paid or credited to policyholders | 3,184 | 894 | 3,478 | — | 7,556 | |||||
Other (1) | 812 | 686 | 458 | 5 | 1,961 | |||||
Financing charges | 32 | (31) | 10 | — | 11 | |||||
Amortization of finite life intangible assets | 20 | 22 | 8 | — | 50 | |||||
Earnings (loss) before income taxes | 441 | 180 | 417 | (3) | 1,035 | |||||
Income taxes (recovery) | 92 | 31 | 31 | (1) | 153 | |||||
Net earnings (loss) before non-controlling | ||||||||||
interests | 349 | 149 | 386 | (2) | 882 | |||||
Non-controlling interests | 17 | 1 | — | — | 18 | |||||
Net earnings (loss) | 332 | 148 | 386 | (2) | 864 | |||||
Preferred share dividends | 29 | — | 4 | — | 33 | |||||
Net earnings (loss) before capital allocation | 303 | 148 | 382 | (2) | 831 | |||||
Impact of capital allocation | 31 | (3) | (27) | (1) | — | |||||
Net earnings (loss) - common shareholders | $ | 334 | $ | 145 | $ | 355 | $ | (3) | $ | 831 |
(1) | Includes commissions, operating and administrative expenses and premium taxes. |
For the six months ended June 30, 2019 | ||||||||||
Canada | United States(2) | Europe | Lifeco Corporate | Total | ||||||
Income | ||||||||||
Total net premiums | $ | 6,312 | $ | (11,613) | $ | 11,009 | $ | — | $ | 5,708 |
Net investment income | ||||||||||
Regular net investment income | 1,373 | 1,113 | 759 | 2 | 3,247 | |||||
Changes in fair value through profit or loss | 3,236 | 1,233 | 2,141 | — | 6,610 | |||||
Total net investment income | 4,609 | 2,346 | 2,900 | 2 | 9,857 | |||||
Fee and other income | 862 | 2,423 | 785 | — | 4,070 | |||||
11,783 | (6,844) | 14,694 | 2 | 19,635 | ||||||
Benefits and expenses | ||||||||||
Paid or credited to policyholders | 9,290 | (8,411) | 13,003 | — | 13,882 | |||||
Other (1) | 1,720 | 1,477 | 928 | 13 | 4,138 | |||||
Financing charges | 64 | 60 | 18 | 2 | 144 | |||||
Amortization of finite life intangible assets | 43 | 40 | 24 | — | 107 | |||||
Earnings (loss) before income taxes | 666 | (10) | 721 | (13) | 1,364 | |||||
Income taxes (recovery) | 106 | (3) | 83 | (3) | 183 | |||||
Net earnings (loss) before non-controlling | ||||||||||
interests | 560 | (7) | 638 | (10) | 1,181 | |||||
Non-controlling interests | (4) | 3 | (1) | — | (2) | |||||
Net earnings (loss) | 564 | (10) | 639 | (10) | 1,183 | |||||
Preferred share dividends | 57 | — | 10 | — | 67 | |||||
Net earnings (loss) before capital allocation | 507 | (10) | 629 | (10) | 1,116 | |||||
Impact of capital allocation | 56 | (7) | (48) | (1) | — | |||||
Net earnings (loss) - common shareholders | $ | 563 | $ | (17) | $ | 581 | $ | (11) | $ | 1,116 |
(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 |
For the six months ended June 30, 2018 | ||||||||||
Canada | United | Europe | Lifeco | Total | ||||||
Income | ||||||||||
Total net premiums | $ | 6,292 | $ | 1,968 | $ | 7,819 | $ | — | $ | 16,079 |
Net investment income | ||||||||||
Regular net investment income | 1,278 | 903 | 962 | 5 | 3,148 | |||||
Changes in fair value through profit or loss | (85) | (840) | (912) | — | (1,837) | |||||
Total net investment income | 1,193 | 63 | 50 | 5 | 1,311 | |||||
Fee and other income | 871 | 1,286 | 759 | — | 2,916 | |||||
8,356 | 3,317 | 8,628 | 5 | 20,306 | ||||||
Benefits and expenses | ||||||||||
Paid or credited to policyholders | 5,823 | 1,646 | 6,867 | — | 14,336 | |||||
Other (1) | 1,628 | 1,360 | 915 | 10 | 3,913 | |||||
Financing charges | 64 | (2) | 20 | — | 82 | |||||
Amortization of finite life intangible assets | 40 | 43 | 16 | — | 99 | |||||
Earnings (loss) before income taxes | 801 | 270 | 810 | (5) | 1,876 | |||||
Income taxes (recovery) | 138 | 44 | 49 | (1) | 230 | |||||
Net earnings (loss) before non-controlling | ||||||||||
interests | 663 | 226 | 761 | (4) | 1,646 | |||||
Non-controlling interests | 17 | 1 | — | — | 18 | |||||
Net earnings (loss) | 646 | 225 | 761 | (4) | 1,628 | |||||
Preferred share dividends | 57 | — | 9 | — | 66 | |||||
Net earnings (loss) before capital allocation | 589 | 225 | 752 | (4) | 1,562 | |||||
Impact of capital allocation | 61 | (5) | (53) | (3) | — | |||||
Net earnings (loss) - common shareholders | $ | 650 | $ | 220 | $ | 699 | $ | (7) | $ | 1,562 |
(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/July2019/31/c0958.html