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. 1, 2018 /CNW/ - Great-West Lifeco Inc. (Lifeco or
the Company) today announced net earnings attributable to common shareholders (net earnings) of $831
million or $0.839 per common share for the second quarter of 2018 compared to $585 million or $0.591 per common share for the same quarter last year. Excluding
2017 restructuring costs, Lifeco's adjusted net earnings in the second quarter of 2017 were $712
million. Net earnings in the second quarter of 2018 increased $119 million or 17%
compared to adjusted net earnings of $712 million reflecting earnings growth in each segment.
Lifeco's net earnings for the second quarter of 2018 included a net positive impact of $60 million
after-tax, or $0.061 per common share, from the restructuring of U.S. financing as a consequence of
U.S. tax reform and the refinancing of certain debt instruments.
For the six months ended June 30, 2018, Lifeco's net earnings were $1,562
million or $1.579 per common share compared to adjusted net earnings of $1,331 million or $1.345 per common share for the same period last year.
"The Company saw solid operating performances and strong earnings growth in the second quarter", said Paul Mahon, President and Chief Executive Officer, Great-West Lifeco. "We are accelerating investments in
digital to drive customer experience and operational effectiveness and taking strategic actions across our businesses to bolster
growth in core markets."
Highlights – In Quarter
Sales of $33.1 billion up 32%
- Sales for the second quarter of 2018 were $33.1 billion, up 32% from the second quarter of
2017, driven by a 45% increase in the U.S. and a 14% increase in Europe.
Fee and other income of $1.5 billion up 4%
- Fee and other income was $1.5 billion, up 4% from the second quarter of 2017, driven by
business growth in all segments and market performance.
Capital strength and financial flexibility maintained
- The Great-West Life Assurance Company reported a Life Insurance Capital Adequacy Test (LICAT) ratio of 133% at June 30, 2018.
- Lifeco declared a quarterly common dividend of $0.3890 per common share payable September 28, 2018.
- During the second quarter of 2018, the Company, through its subsidiaries, issued $1,024
million (US$800 million) of senior notes and redeemed two tranches of subordinated
debentures totaling $899 million.
- Adjusted return on equity (ROE) for the second quarter of 2018 was 14.2%. The adjusted ROE excludes the impact of U.S. tax
reform, a net charge on the sale of an equity investment and restructuring costs included in the prior year results.
- Consolidated assets under administration at June 30, 2018 were over $1.4 trillion, a 5% increase from December 31, 2017.
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 2018 second quarter Management's Discussion and Analysis (MD&A).
CANADA
- Q2 Canada segment net earnings up 7% – Net earnings attributable to common
shareholders for the second quarter of 2018 were $334 million compared to adjusted net earnings
of $311 million in the second quarter of 2017, an increase of 7%, primarily reflecting strong
Group Customer morbidity results and positive contributions from insurance contract liability basis changes. For the six months
ended June 30, 2018, net earnings were $650 million compared to
adjusted net earnings of $566 million for the same period last year. Adjusted net earnings in
2017 exclude restructuring costs of $126 million.
- Canada advances business transformation – The Canadian operations made progress on
the previously announced targeted annual expense reductions of $200 million pre-tax. As of
June 30, 2018, the Company has achieved approximately $170 million
pre-tax in annualized expense reductions; approximately $131 million related to the common
shareholders' account and $39 million related to the participating accounts.
UNITED STATES
- Q2 U.S. segment net earnings up 6% excluding impact of U.S. debt refinancing – Net earnings attributable to common
shareholders for the second quarter of 2018, excluding the net positive impact of US$39 million
related to U.S. debt refinancing activity, were US$66 million, up 6%, compared to US$62 million in the second quarter of 2017. The increase was primarily due to net growth in the business and
the benefit of a lower U.S. corporate tax rate. For the six months ended June 30, 2018, net
earnings were US$164 million, or US$125 million excluding the
refinancing impact, compared to US$104 million for the same period last year.
- Q2 U.S. segment fee and other income up 3% – Fee and other income for the three months ended June 30, 2018 was US$508 million compared to US$491
million for the same quarter last year, an increase of 3%, due to growth in Empower Retirement participants and
assets.
- Putnam average assets up 7% – Putnam average
assets under management for the three months ended June 30, 2018 were US$172.8 billion compared to US$161.8 billion for the same quarter last year,
an increase of 7%, primarily due to the cumulative impact of positive markets over the twelve month period. Putnam ending assets under management at June 30, 2018 were US$172.4 billion.
- Strong net asset inflows at Putnam – Putnam's net
asset inflows for the three months ended June 30, 2018 were US$1.6
billion, which were the highest since the second quarter of 2011. Included in the net asset inflows for the three months
ended June 30, 2018 of US$1.6 billion, were mutual fund net inflows
of US$0.6 billion, which were the highest since the fourth quarter of 2014.
EUROPE
- Q2 Europe segment net earnings up 11% – Net earnings attributable to common
shareholders for the second quarter of 2018 were $355 million, up 11%, compared to $321 million in the second quarter of 2017, primarily driven by a higher impact from insurance contract
liability basis changes mainly reflecting longevity assumption updates, partially offset by lower contributions from investment
experience. For the six months ended June 30, 2018, net earnings were $699
million compared to $610 million for the same period last year.
- Q2 Europe segment sales up 14% – Sales for the second quarter of 2018 were
$5.5 billion, an increase of 14% compared to the same quarter last year reflecting the inclusion
of Retirement Advantage sales and strong growth across most products.
- Acquisition of strategic holding in financial consultancy Invesco Ltd (Ireland)
announced – On April 20, 2018, the Company announced that its subsidiary, Irish Life Group
Limited, reached an agreement to acquire a strategic holding in Invesco Ltd (Ireland),
Ireland's largest Irish-owned independent financial consultancy firm. The acquisition is
subject to regulatory approval and customary closing conditions, and is expected to be completed in the third quarter of
2018.
- Sale of heritage policies to Scottish Friendly announced – Canada Life Limited, a U.K. subsidiary of the
Company, agreed to sell a block of 155,000 heritage policies with assets and liabilities of £2.7 billion to Scottish Friendly.
Canada Life Investments, a U.K. subsidiary of the Company, will continue to manage a substantial portion of the transferring
unit-linked assets. The block has largely been closed to new business since 2003 and comprises individual life savings
policies, individual pensions saving policies and individual protection policies. The transfer of these policies to Scottish
Friendly is subject to regulatory approval and the satisfactory completion of certain closing conditions, and is expected to
occur in late 2019. This sale, together with the integration of the Retirement Advantage business, will act as an enabler to
help move forward in transforming the U.K. business to increase focus on the retirement market to serve the evolving needs of
customers and support future growth.
QUARTERLY DIVIDENDS
At its meeting today, the Board of Directors approved a quarterly dividend of $0.3890 per share on
the common shares of Lifeco payable September 28, 2018 to shareholders of record at the close of
business August 31, 2018.
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 31, 2018
|
September 28, 2018
|
$0.36875
|
Series G
|
August 31, 2018
|
September 28, 2018
|
$0.3250
|
Series H
|
August 31, 2018
|
September 28, 2018
|
$0.30313
|
Series I
|
August 31, 2018
|
September 28, 2018
|
$0.28125
|
Series L
|
August 31, 2018
|
September 28, 2018
|
$0.353125
|
Series M
|
August 31, 2018
|
September 28, 2018
|
$0.3625
|
Series N
|
August 31, 2018
|
September 28, 2018
|
$0.1360
|
Series O
|
August 31, 2018
|
September 28, 2018
|
$0.163835
|
Series P
|
August 31, 2018
|
September 28, 2018
|
$0.3375
|
Series Q
|
August 31, 2018
|
September 28, 2018
|
$0.321875
|
Series R
|
August 31, 2018
|
September 28, 2018
|
$0.3000
|
Series S
|
August 31, 2018
|
September 28, 2018
|
$0.328125
|
Series T
|
August 31, 2018
|
September 28, 2018
|
$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. (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 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) and Putnam Investments, LLC (Putnam). Lifeco and its companies have over $1.4 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 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 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, 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 2017 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", "adjusted net earnings", "adjusted return on equity", "core net
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 1, 2018 at
2:30 p.m. (ET). The call and webcast can be accessed through www.greatwestlifeco.com or by phone at:
A replay of the call will be available from August 1, 2018 to August 8,
2018, and can be accessed by calling 1-800-408-3053 or 905-694-9451 in Toronto (passcode:
3123659#). The archived webcast will be available on www.greatwestlifeco.com from August 1, 2018 to July 31,
2019.
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
2018
|
March 31
2018
|
June 30
2017
|
|
June 30
2018
|
June 30
2017
|
Premiums and deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net premium income (Life insurance, guaranteed annuities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and insured health products)
|
$
|
7,905
|
$
|
8,174
|
$
|
7,761
|
|
$
|
16,079
|
$
|
17,115
|
|
Policyholder deposits (segregated funds):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Individual products
|
4,142
|
3,988
|
4,142
|
|
8,130
|
8,039
|
|
|
Group products
|
1,954
|
2,422
|
2,020
|
|
4,376
|
4,205
|
|
Self-funded premium equivalents
|
|
|
|
|
|
|
|
|
(Administrative services only contracts)(1)
|
774
|
748
|
720
|
|
1,522
|
1,436
|
|
Proprietary mutual funds and institutional
deposits(1)
|
19,196
|
17,794
|
13,767
|
|
36,990
|
31,153
|
Total premiums and deposits(1)(2)
|
33,971
|
33,126
|
28,410
|
|
67,097
|
61,948
|
|
|
|
|
|
|
|
|
|
|
|
Fee and other income(2)
|
1,483
|
1,433
|
1,421
|
|
2,916
|
2,769
|
Net policyholder benefits, dividends and
|
|
|
|
|
|
|
|
experience refunds
|
7,588
|
7,829
|
7,377
|
|
15,417
|
15,920
|
|
|
|
|
|
|
|
|
Earnings
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings - common shareholders
|
$
|
831
|
$
|
731
|
$
|
585
|
|
$
|
1,562
|
$
|
1,176
|
Adjustments(7)
|
—
|
—
|
127
|
|
—
|
155
|
Adjusted net earnings - common shareholders(7)
|
831
|
731
|
712
|
|
1,562
|
1,331
|
|
Per common share
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings
|
0.839
|
0.740
|
0.591
|
|
1.579
|
1.189
|
|
|
Adjusted basic
earnings(7)
|
0.839
|
0.740
|
0.719
|
|
1.579
|
1.345
|
|
|
Dividends paid
|
0.389
|
0.389
|
0.367
|
|
0.778
|
0.734
|
|
|
Book value
|
21.22
|
21.01
|
19.95
|
|
|
|
|
|
|
|
|
|
|
Return on common shareholders' equity(3)
|
|
|
|
|
|
|
|
|
|
Net earnings
|
12.5%
|
11.4%
|
13.0%
|
|
|
|
Adjusted net earnings(7)
|
14.2%
|
13.8%
|
13.9%
|
|
|
|
|
|
|
|
Total assets(4)
|
$
|
430,695
|
$
|
432,651
|
$
|
409,511
|
|
|
|
Proprietary mutual funds and institutional
|
|
|
|
|
|
|
|
net assets(5)
|
|
294,890
|
|
285,843
|
|
271,686
|
|
|
Total assets under management(5)
|
725,585
|
718,494
|
681,197
|
|
|
|
Other assets under administration(6)
|
697,680
|
673,597
|
627,633
|
|
|
Total assets under administration
|
$
|
1,423,265
|
$
|
1,392,091
|
$
|
1,308,830
|
|
|
Total equity
|
$
|
26,620
|
$
|
26,435
|
$
|
25,428
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
In addition to premiums and deposits reported in the financial statements,
the Company includes premium equivalents on self-funded group insurance administrative services only (ASO) contracts and
deposits on proprietary mutual funds and institutional accounts to calculate total premiums and deposits (a non-IFRS
financial measure). This measure provides useful information as it is an indicator of top line growth.
|
(2)
|
Comparative figures have been reclassified to reflect presentation
adjustments relating to the adoption of IFRS 15, Revenue from Contracts with Customers, as described in the
"International Financial Reporting Standards" section of the Company's June 30, 2018 Management's Discussion and Analysis
and in note 2 to the Company's condensed consolidated interim unaudited financial statements for the period ended June
30, 2018.
|
(3)
|
Return on common shareholders' equity is detailed within the "Capital
Allocation Methodology" section of the Company's June 30, 2018 Management's Discussion and Analysis.
|
(4)
|
Comparative figures have been reclassified as described in note 2 and note
34 to the Company's December 31, 2017 annual consolidated financial statements.
|
(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)
|
Adjusted net earnings attributable to common shareholders and adjusted net
earnings per common share (EPS) are non-IFRS measures of earnings performance. For the second quarter of 2018,
adjustments were nil (nil for the first quarter of 2018). The following adjustments were made for the six months
ending June 30, 2017:
|
|
Segment
|
|
|
|
|
|
|
|
|
2017 Adjustments:
|
Canada
|
|
United
States
|
|
Europe
|
|
Total
|
|
EPS Impact
|
|
|
Q1 Restructuring expenses
|
$
|
—
|
|
$
|
11
|
|
$
|
17
|
|
$
|
28
|
|
$
|
0.029
|
|
|
Q2 Restructuring expenses
|
126
|
|
—
|
|
1
|
|
127
|
|
0.128
|
|
|
Total Adjustments
|
$
|
126
|
|
$
|
11
|
|
$
|
18
|
|
$
|
155
|
|
$
|
0.156
|
CONSOLIDATED STATEMENTS OF EARNINGS
(unaudited)
|
|
(in Canadian $ millions except per share amounts)
|
|
|
|
|
For the three months ended
|
|
For the six months ended
|
|
|
June 30
2018
|
March 31
2018
|
June 30
2017(1)
|
|
June 30
2018
|
June 30
2017(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
|
|
|
|
|
|
|
|
|
|
|
|
|
Premium income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross premiums written
|
$
|
9,012
|
$
|
9,293
|
$
|
8,781
|
|
$
|
18,305
|
$
|
19,254
|
|
|
|
Ceded premiums
|
(1,107)
|
(1,119)
|
(1,020)
|
|
(2,226)
|
(2,139)
|
|
|
Total net premiums
|
7,905
|
8,174
|
7,761
|
|
16,079
|
17,115
|
|
|
Net investment income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regular net investment income
|
1,575
|
1,573
|
1,591
|
|
3,148
|
3,060
|
|
|
|
Changes in fair value through profit or loss
|
(350)
|
(1,487)
|
304
|
|
(1,837)
|
1,039
|
|
|
Total net investment income
|
1,225
|
86
|
1,895
|
|
1,311
|
4,099
|
|
|
Fee and other income
|
1,483
|
1,433
|
1,421
|
|
2,916
|
2,769
|
|
|
10,613
|
9,693
|
11,077
|
|
20,306
|
23,983
|
|
Benefits and expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Policyholder benefits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
|
7,742
|
7,996
|
7,415
|
|
15,738
|
16,010
|
|
|
|
Ceded
|
(596)
|
(625)
|
(500)
|
|
(1,221)
|
(1,110)
|
|
|
Total net policyholder benefits
|
7,146
|
7,371
|
6,915
|
|
14,517
|
14,900
|
|
|
Policyholder dividends and experience refunds
|
442
|
458
|
462
|
|
900
|
1,020
|
|
|
Changes in insurance and investment contract
|
|
|
|
|
|
|
|
|
|
liabilities
|
(32)
|
(1,049)
|
850
|
|
(1,081)
|
2,169
|
|
|
Total paid or credited to policyholders
|
7,556
|
6,780
|
8,227
|
|
14,336
|
18,089
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commissions
|
596
|
594
|
609
|
|
1,190
|
1,422
|
|
|
Operating and administrative expenses
|
1,241
|
1,237
|
1,154
|
|
2,478
|
2,359
|
|
|
Premium taxes
|
124
|
121
|
107
|
|
245
|
230
|
|
|
Financing charges
|
11
|
71
|
79
|
|
82
|
155
|
|
|
Amortization of finite life intangible assets
|
50
|
49
|
47
|
|
99
|
92
|
|
|
Restructuring expenses
|
—
|
—
|
216
|
|
—
|
253
|
|
Earnings before income taxes
|
1,035
|
841
|
638
|
|
1,876
|
1,383
|
|
Income taxes
|
153
|
77
|
51
|
|
230
|
147
|
|
Net earnings before non-controlling interests
|
882
|
764
|
587
|
|
1,646
|
1,236
|
|
Attributable to non-controlling interests
|
18
|
—
|
(28)
|
|
18
|
(1)
|
|
Net earnings
|
864
|
764
|
615
|
|
1,628
|
1,237
|
|
Preferred share dividends
|
33
|
33
|
30
|
|
66
|
61
|
|
Net earnings - common shareholders
|
$
|
831
|
$
|
731
|
$
|
585
|
|
$
|
1,562
|
$
|
1,176
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.839
|
$
|
0.740
|
$
|
0.591
|
|
$
|
1.579
|
$
|
1.189
|
|
|
Diluted
|
$
|
0.839
|
$
|
0.739
|
$
|
0.590
|
|
$
|
1.578
|
$
|
1.187
|
|
|
|
(1)
|
Certain comparative figures have been reclassified as described in note 2
to the Company's June 30, 2018 condensed consolidated interim unaudited financial statements.
|
CONSOLIDATED BALANCE SHEETS (unaudited)
|
|
(in Canadian $ millions)
|
|
|
|
|
|
June 30
2018
|
December 31
2017
|
|
|
|
Assets
|
|
|
|
Cash and cash equivalents
|
$
|
3,794
|
$
|
3,551
|
|
Bonds
|
122,437
|
120,204
|
|
Mortgage loans
|
24,206
|
22,185
|
|
Stocks
|
9,226
|
8,864
|
|
Investment properties
|
5,098
|
4,851
|
|
Loans to policyholders
|
8,611
|
8,280
|
|
|
173,372
|
167,935
|
|
Assets held for sale
|
—
|
169
|
|
Funds held by ceding insurers
|
9,581
|
9,893
|
|
Goodwill
|
6,480
|
6,179
|
|
Intangible assets
|
3,821
|
3,732
|
|
Derivative financial instruments
|
382
|
384
|
|
Owner occupied properties
|
720
|
706
|
|
Fixed assets
|
372
|
303
|
|
Other assets
|
2,604
|
2,424
|
|
Premiums in course of collection, accounts and interest
receivable
|
4,990
|
4,647
|
|
Reinsurance assets
|
6,095
|
5,045
|
|
Current income taxes
|
224
|
134
|
|
Deferred tax assets
|
937
|
930
|
|
Investments on account of segregated fund policyholders
|
221,117
|
217,357
|
|
Total assets
|
$
|
430,695
|
$
|
419,838
|
|
|
|
|
|
Liabilities
|
|
|
|
Insurance contract liabilities
|
$
|
163,898
|
$
|
159,524
|
|
Investment contract liabilities
|
1,769
|
1,841
|
|
Debentures and other debt instruments
|
6,031
|
5,617
|
|
Capital trust securities
|
160
|
160
|
|
Funds held under reinsurance contracts
|
1,383
|
373
|
|
Derivative financial instruments
|
1,250
|
1,336
|
|
Accounts payable
|
3,314
|
2,684
|
|
Other
liabilities
|
3,445
|
3,752
|
|
Current income taxes
|
495
|
464
|
|
Deferred tax liabilities
|
1,213
|
1,194
|
|
Investment and insurance contracts on account of segregated fund
policyholders
|
221,117
|
217,357
|
|
Total liabilities
|
404,075
|
394,302
|
|
|
|
|
|
Equity
|
|
|
|
Non-controlling interests
|
|
|
|
|
Participating account surplus in subsidiaries
|
2,782
|
2,771
|
|
|
Non-controlling interests in subsidiaries
|
135
|
164
|
|
Shareholders' equity
|
|
|
|
|
Share capital
|
|
|
|
|
|
Preferred shares
|
2,714
|
2,714
|
|
|
|
Common
shares
|
7,291
|
7,260
|
|
|
Accumulated surplus
|
12,742
|
12,098
|
|
|
Accumulated other comprehensive income
|
828
|
386
|
|
|
Contributed surplus
|
128
|
143
|
|
Total equity
|
26,620
|
25,536
|
|
Total liabilities and equity
|
$
|
430,695
|
$
|
419,838
|
|
Segmented Information (unaudited)
|
|
|
|
Consolidated Net Earnings
|
|
|
|
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
|
|
|
Restructuring expenses
|
—
|
—
|
—
|
—
|
—
|
|
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 three months ended June 30, 2017
|
|
|
Canada(2)
|
United
States(2)
|
Europe
|
Lifeco
Corporate
|
Total(2)
|
|
Income
|
|
|
|
|
|
|
Total net premiums
|
$
|
3,178
|
$
|
942
|
$
|
3,641
|
$
|
—
|
$
|
7,761
|
|
|
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
|
417
|
658
|
346
|
—
|
1,421
|
|
|
4,519
|
2,325
|
4,231
|
2
|
11,077
|
|
|
|
|
|
|
|
Benefits and expenses
|
|
|
|
|
|
|
Paid or credited to policyholders
|
3,333
|
1,476
|
3,418
|
—
|
8,227
|
|
|
Other (1)
|
790
|
673
|
405
|
2
|
1,870
|
|
|
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.
|
(2)
|
Certain comparative figures have been reclassified as described in note 2
to the Company's June 30, 2018 condensed consolidated interim unaudited financial statements.
|
For the six months ended June 30, 2018
|
|
|
Canada
|
United
States
|
Europe
|
Lifeco
Corporate
|
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
|
|
|
Restructuring expenses
|
—
|
—
|
—
|
—
|
—
|
|
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.
|
|
|
|
|
|
For the six months ended June 30, 2017
|
|
|
Canada(2)
|
United
States(2)
|
Europe
|
Lifeco
Corporate
|
Total(2)
|
|
Income
|
|
|
|
|
|
|
Total net premiums
|
$
|
6,462
|
$
|
2,171
|
$
|
8,482
|
$
|
—
|
$
|
17,115
|
|
|
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
|
822
|
1,277
|
670
|
—
|
2,769
|
|
|
9,196
|
4,730
|
10,056
|
1
|
23,983
|
|
|
|
|
|
|
|
Benefits and expenses
|
|
|
|
|
|
|
Paid or credited to policyholders
|
6,578
|
3,028
|
8,483
|
—
|
18,089
|
|
|
Other (1)
|
1,825
|
1,384
|
791
|
11
|
4,011
|
|
|
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.
|
(2)
|
Certain comparative figures have been reclassified as described in note 2
to the Company's June 30, 2018 condensed consolidated interim unaudited financial statements.
|
SOURCE Great-West Lifeco Inc.
View original content: http://www.newswire.ca/en/releases/archive/August2018/01/c4208.html