Q1 profits down for Great-West Lifeco compared to last year

Great-West Lifeco Inc. reported its first-quarter profit fell compared with a year ago, hurt by higher income taxes, lower net fee income in Canada and the U.S., and unfavourable claims experience in Europe.

The insurance company says it earned $657 million or 67¢ per common share for the first quarter of 2019.

That compared with a profit of $731 million or 74¢ per common share for the same quarter last year.

Great-West chief executive Paul Mahon says sales growth was strong and business fundamentals remained sound despite the weaker earnings performance in the first quarter.

Last month, Great-West announced it would consolidate its three Canadian life insurance companies under a single brand — Canada Life.

In addition to the brand unification, Great-West Life, London Life, Canada Life and their holding companies Canada Life Financial Corporation and London Insurance Group Inc. have also begun the process to formally amalgamate as one company.

The Canadian Press

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