Great-West Lifeco reports net earnings down in Q3

For the third quarter, Great-West Lifeco Inc. reports net earnings attributable to common shareholders of $674 million or $0.682 per common share, compared to $720 million or $0.724 per common share for Q3 2015.

Net earnings are $1,965 million, compared to $2,079 million for Q3 2015. This represents $1.982 per common share, compared to $2.086 per common share for Q3 2015.

Consolidated assets under administration are over $1.2 trillion, an increase of $16.0 billion from December 31, 2015.

Other Q3 highlights:

• Lifeco premiums and deposits of $29.3 billion are comparable to Q3 2015.
• Canada premiums and deposits are $6.1 billion, up 7%, primarily due to strong individual insurance and single premium group annuity sales.
• Europe premiums and deposits are $8.3 billion, down 16%, primarily due to a $3.5-billion sale to an institutional client in Q3 2015. Excluding this impact, premiums and deposits increased $2.0 billion, primarily due to an increase in premiums from reinsurance agreements, higher fund management sales in Ireland and higher payout annuity sales in the U.K.

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• Great-West Financial premiums and deposits are US$2.7 billion, up 3%, primarily as a result of higher premiums due to sales from the executive benefits line of business.
• Empower retirement sales are down compared to Q3 2015, driven by lower very large plan sales.
• Putnam gross sales are US$8.7 billion, up 11% overall. Institutional sales increased 36% as the pipeline continues to remain strong, while mutual fund sales decreased 11%, reflective of the decline in industry segments where Putnam operates.
• Lifeco’s capital position remains strong, with a minimum continuing capital surplus requirements (MCCSR) ratio of 227%.

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• ROE is 13.8%.
• A quarterly common dividend of $0.3460 per common share is payable December 30, 2016.
• Lifeco completed its previously announced Irish health insurance acquisitions and will operate its new business under the Irish Life Health brand. The Company has set annual cost savings targets of €16 million pre-tax, to be achieved through operating efficiencies from the combination of the businesses. Integration activities, with an expected cost of €16 million pre-tax, are anticipated to be completed in the next 18 to 24 months.

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