Great-West Lifeco Inc. (Lifeco) 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 Great-West Life, London Life, Canada Life, Irish Life, Empower Retirement, Putnam Investments and PanAgora Asset Management.
In Canada, Great-West Life, London Life and Canada Life are transitioning to one brand. The new Canada Life brand combines the strengths of the three companies to help Canadians reach their full potential, every day.
Great-West Life is a leading Canadian insurer, with interests in life insurance, health insurance, investment, retirement savings and reinsurance, primarily in Canada and Europe.
In Canada, Great-West Life and its subsidiaries, London Life and Canada Life, serve the financial security needs of more than 13 million people across the country.
In Europe, Great-West Life has operations in the United Kingdom, Isle of Man and Germany through Canada Life and in Ireland through Irish Life.
London Life offers financial solutions for any stage of life through an array of products including individual insurance, wealth management and retirement planning and savings. Through its Freedom 55 Financial™ division, London Life offers financial security guidance and planning, which focuses on meeting the complex needs of Canadians.
London Life participates in international reinsurance markets through its branch in Barbados and its London Reinsurance Group subsidiary.
For more than 170 years, Canada Life has provided insurance and wealth management products and services in Canada, the United Kingdom, Isle of Man and Germany and through Irish Life in Ireland.
As a leading provider of traditional mortality, structured and longevity reinsurance solutions for life insurers in the United States and in Europe, Canada Life operates through branches and subsidiaries in the U.S., Barbados and Ireland.
Empower Retirement is the second-largest U.S. retirement services provider by participants. It serves all segments of the employer-sponsored retirement plan market – small, mid-size and large corporate clients, government plans, non-profit entities and private-label recordkeeping clients – and offers individual retirement accounts.
Putnam Investments is a U.S.-based global asset manager with over 80 years of investment experience. The firm offers a full range of investment capabilities for financial advisors, institutional investors and retirement plan sponsors: equities, fixed income, global asset allocation, and alternatives, including absolute return, risk parity and hedge funds. Headquartered in Boston, Putnam has offices in London, Frankfurt, Tokyo, Singapore and Sydney.
PanAgora Asset Management is a quantitative investment manager whose proprietary approach is designed to capitalize on inefficiencies across market cycles and to deliver relative and absolute returns through distinct and innovative equity, multi-asset and risk premia strategies. PanAgora’s approach combines the firm’s fundamental investment philosophy and original research with an advanced quantitative framework. These elements come together in an open, collaborative environment that builds upon the intellectual versatility of its team and leverages their complementary strengths — essential to serving the evolving objectives of institutional investors worldwide.
PanAgora was founded in 1989 and is based in Boston, Massachusetts. Shareholders include the firm’s employees and Great-West Life, a member of the Power Financial Corporation group of companies.
Irish Life is one of Ireland’s leading financial services companies with over 1.3 million customers.
For 80 years, Irish Life has been helping people in Ireland to look after their needs for life insurance, pensions and investments and more recently, health insurance. Its vision is to help people in Ireland to have healthier lives and to build better futures.
As part of Great-West Lifeco, Irish Life has access to experience and expertise on a global scale, allowing the company to continuously enhance its leading range of products and services. This also has been independently recognized with a number of customer experience awards in recent years.
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For the three months ended |
For the years ended |
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|---|---|---|---|---|---|
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(In millions of canadian dollars, except per share amounts or as otherwise noted) |
Sept. 30 |
June 30 |
Sept. 30 |
Dec. 31 |
Dec. 31 |
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Selected consolidated financial information |
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Premiums and deposits: |
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|
Amounts reported in the financial statements |
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|
Net premium income (Life insurance, guaranteed annuities and insured health |
9,324 | (3,887) | 10,337 | 35,461 |
33,902 |
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Policyholder deposits (segregated funds): |
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|
Individual products |
4,146 | 3,723 | 3,833 | 16,668 |
17,037 |
|
Group products |
1,999 | 1,732 | 1,790 | 7,807 |
7,848 |
|
Premiums and deposits reported in the financial statements(1) |
15,469 | 1,568 | 15,960 | 59,936 |
58,787 |
|
Self-funded premium equivalents (ASO contracts)(2) |
813 | 830 | 744 | 3,068 |
2,827 |
|
Proprietary mutual funds & institutional deposits(2) |
20,135 | 17,993 | 17,878 | 76,258 |
61,490 |
|
U.S. Individual Insurance & Annuity Business — initial reinsurance ceded premiums(2) |
- | 13,889 | - | - | - |
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Total premiums and deposits(1)(2) |
36,417 | 34,280 | 34,582 | 139,262 |
123,104 |
|
Fee and other income(1) |
1,496 | 2,591 | 1,483 | 5,819 |
5,608 |
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Net policyholder benefits, dividends and experience refunds |
8,468 | 8,957 | 7,653 | 31,566 |
30,387 |
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Earnings |
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Net earnings — common shareholders |
730 | 459 | 689 | 2,961 |
2,149 |
| Adjustments(3) | - | 199 | 56 | 56 |
498 |
| Adjusted net earnings — common shareholders(3) | 730 | 658 | 745 | 3,017 |
2,647 |
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Per common share |
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Basic earnings |
0.786 | 0.489 | 0.697 | 2.996 |
2.173 |
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Adjusted net earnings(3) |
0.786 | 0.701 | 0.754 | 3.052 |
2.676 |
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Dividends paid |
0.413 | 0.413 | 0.389 | 1.556 |
1.468 |
|
Book value |
21.02 | 20.84 | 21.25 | 22.08 |
20.11 |
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Return on common shareholders' equity |
|||||
| Net earnings | 12.4% | 12.0% | 12.8% | 14.0% |
10.9% |
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Adjusted net earnings(3) |
13.4% | 13.2% | 14.7% | 14.3% |
13.4% |
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Total assets per financial statements |
446,626 | 441,897 | 429,082 | 427,689 |
419,838 |
|
Proprietary mutual funds and institutional net assets(4) |
308,425 | 305,252 | 293,766 | 281,664 |
278,954 |
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Total assets under management(4) |
755,051 | 747,149 | 722,848 | 709,353 |
698,792 |
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Other assets under administration(5) |
841,700 | 820,808 | 718,410 | 689,520 |
651,121 |
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Total assets under administration |
1,596,751 | 1,567,957 | 1,441,258 | 1,398,873 |
1,349,913 |
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Total equity |
25,157 | 24,995 | 26,624 | 27,398 |
25,536 |
(1) Comparative figures for 2017 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 and in note 2 to Lifeco's consolidated financial statements for the period ended December 31, 2018.
(2) In addition to premiums and deposits reported in Lifeco's financial statements, Lifeco includes premium equivalents on self-funded group insurance administrative services only (ASO) contracts and deposits on proprietary mutual funds and institutional accounts. Lifeco excludes ceded premiums relating to the sale, via indemnity reinsurance, of the U.S. individual life insurance and annuity business (initial reinsurance ceded premiums of $13.9 billion). Total premiums and deposits (a non-IFRS financial measure) provides useful information as it is an indicator of top-line growth.
(3) Adjusted net earnings attributable to common shareholders and adjusted net earnings per common share are non-IFRS financial measures of earnings performance and reflect the following adjustments: in the second quarter of 2019, net charge of $199 million relating to the sale via indemnity reinsurence, of the U.S. individual life insurance and annuity business, in the third quarter of 2018, restructuring costs of $56 million related to Lifeco's U.K. operations, and for the year ended December 31, 2017, restructuring costs of $160 million, net charge of $122 million on sale of equity investment and $216 million from the U.S. tax reform impact. Refer to Lifeco's most recent Management's Discussion and Analysis for the definition of non-IFRS financial measures and their reconciliation with IFRS financial measures.
(4) Total assets under management (a non-IFRS financial measure) provides an indicator of the size and volume of the overall business of Lifeco. 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 Lifeco has oversight of the investment policies.
(5) Other assets under administration (a non-IFRS financial measure) includes assets where Lifeco only provides administration services for which Lifeco earns fee and other income. These assets are beneficially owned by clients and Lifeco does not direct the investing activities. Services provided relating to assets under administration include recordkeeping, safekeeping, collecting investment income, settling of transactions or other administrative services. Administrative services are an important aspect of Lifeco's overall business and should be considered when comparing volumes, size and trends.
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As at and for the years ended December 31 [in millions of Canadian dollars, except as otherwise noted] |
2018 |
2017 |
2016 |
2015 |
2014 |
|---|---|---|---|---|---|
|
Total assets under administration |
1,398,873 |
1,349,913 | 1,248,239 | 1,212,517 |
1,063,333 |
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Premiums and deposits: |
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Amounts reported in the financial statements |
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|
Net premium income (Life insurance, guaranteed annuities and insured health products)(1) |
35,461 |
33,902 | 31,125 | 24,501 |
21,222 |
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Policyholder deposits (segregated funds): |
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|
Individual products |
16,668 |
17,037 | 13,512 | 12,983 |
11,826 |
|
Group products |
7,807 |
7,848 | 7,846 | 8,609 |
9,083 |
|
Premiums and deposits reported in the financial statements(1) |
59,936 |
58,787 | 52,483 | 46,093 |
42,131 |
|
Self-funded premium equivalents (ASO contracts) |
3,068 |
2,827 | 2,751 | 2,625 |
2,603 |
|
Proprietary mutual funds & institutional deposits |
76,258 |
61,490 | 62,232 | 56,257 |
45,306 |
|
Total premiums and deposits(1) |
139,262 |
123,104 | 117,466 | 104,975 |
90,040 |
|
Condensed Consolidated Statements of Earnings |
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|
Income |
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|
Total net premiums(1) |
35,461 |
33,902 | 31,125 | 24,501 |
21,222 |
|
Net investment income |
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|
Regular net investment income |
6,358 |
6,141 | 6,252 | 6,271 |
6,010 |
|
Changes in fair value through profit or loss |
(3,606) |
1,466 | 3,903 | (2,010) |
7,527 |
|
Total net investment income |
2,752 |
7,607 | 10,155 | 4,261 |
13,537 |
|
Fee and other income(1) |
5,819 |
5,608 | 5,101 | 5,058 |
4,422 |
|
Total income(1) |
44,032 |
47,117 | 46,381 | 33,820 |
39,181 |
|
Benefits and expenses |
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|
Paid or credited to policyholders |
32,068 |
35,643 | 34,675 | 22,842 |
29,160 |
|
Other(1) |
8,223 |
8,115 | 8,114 | 7,326 |
6,468 |
|
Amortization of finite life intangible assets and impairment reversal |
212 |
168 | 177 | 146 |
132 |
| Restructuring expenses |
67 |
259 | 63 | 35 |
32 |
| Loss on assets held for sale |
- |
202 | - | - |
- |
|
Earnings before income taxes |
3,462 |
2,730 | 3,352 | 3,471 |
3,389 |
|
Income taxes |
387 |
422 | 396 | 460 |
628 |
|
Net earnings before non-controlling interests |
3,075 |
2,308 | 2,956 | 3,011 |
2,761 |
|
Non-controlling interests |
(19) |
30 | 192 | 123 |
93 |
|
Net earnings — shareholders |
3,094 |
2,278 | 2,764 | 2,888 |
2,668 |
|
Preferred share dividends |
133 |
129 | 123 | 126 |
122 |
|
Net earnings — common shareholders |
2,961 |
2,149 | 2,641 | 2,762 |
2,546 |
|
Earnings per common share |
2.996 |
2.173 | 2.668 | 2.774 |
2.549 |
|
Return on common shareholders' equity |
14.0% |
10.9% | 13.8% | 14.7% |
15.7% |
|
Book value per common share |
22.08 |
20.11 | 19.76 | 20.06 |
16.80 |
|
Dividends to common shareholders — per share |
1.556 |
1.468 |
1.384 |
1.304 |
1.230 |
(1) Comparative figures for 2017 have been reclassified to reflect presentation adjustments relating to the adoption of IFRS 15, Revenue from Contracts with Customers, as described in note 2 to Lifeco's December 31, 2018 annual consolidated financial statements.
