Great-West Lifeco posts Q3 earnings of $523 million

Great-West Lifeco Inc. has reported net earnings attributable to common shareholders of $523 million or $0.527 per common share for the three months ended September 30, 2013.

Excluding the impact of acquisition and restructuring costs associated with the Irish Life Group Limited (Irish Life) acquisition, net earnings were $583 million or $0.588 per common share for the three months ended September 30, 2013, up 12.5% from$518 million or $0.546 per common share for the same period in 2012.

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For the nine months ended September 30, 2013, Lifeco’s net earnings attributable to common shareholders were $1,561 million or $1.618 per common share, compared to $1,455 million or $1.532 per common share for the same period in 2012.

Consolidated assets under administration at September 30, 2013 were $705 billion, up $159 billion from December 31, 2012 including $94 billion of assets related to Irish Life.

Highlights:

• Irish Life contributed $41 million of earnings to Lifeco for the period July 19 to September 30, 2013. Excluding the Irish Life contribution and related acquisition and restructuring costs, Lifeco’s net earnings were $542 million or $0.546 per common share.
• Total Company premiums and deposits during the quarter were $19.7 billion, up 27% from a year ago including $2.6 billionfrom Irish Life.
• Total Company sales in the third quarter of 2013 were up 41% from the same period in 2012, reflecting strong momentum and growth across all geographies:
  • Canada sales were $2.4 billion, up 14% compared to the third quarter of 2012.
  • Europe Insurance & Annuities sales were $3.3 billion, up 281% compared to the third quarter of 2012 including a contribution of $2.4 billion from Irish Life.
  • Putnam sales were US$8.3 billion, up 26% compared to the third quarter of 2012. Net asset inflows for the third quarter of 2013 were US$1.1 billion compared to US$0.6 billion in the same quarter last year, reflecting an increase in mutual fund net asset flows to US$1.5 billion. Mutual fund sales were the highest since the third quarter of 2003.
  • Great-West Financial sales were US$2.2 billion, consistent with the third quarter of 2012.
• The Company maintained a strong ROE of 16.0% based on operating earnings and 14.9% based on net earnings.
• The Company’s capital position remained very strong. The Great-West Life Assurance Company reported a Minimum Continuing Capital and Surplus Requirements (MCCSR) ratio of 221% at September 30, 2013.
• The Company declared a quarterly common dividend of $0.3075 per common share payable December 31, 2013.

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