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, Great-West Financial and Putnam Investments.
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.
Great-West Life & Annuity Insurance Company, founded in 1907, operates in the United States using the marketing name Great-West Financial®.
Under the Great-West Financial brand, the firm provides life insurance, annuities and executive benefits products. Its Great-West Investments unit offers fund management, investment and advisory services.
The company's Empower Retirement division 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.
Founded in 1989, PanAgora Asset Management is a premier provider of institutional investment solutions, including alternatives, risk premia and active strategies, spanning all major asset classes and risk ranges.
The company is committed to providing its clients with transparency, reliable investment process, consistent performance, and access to its investment resources. Research plays a central role in PanAgora’s investment philosophy and process, a fact that is underscored by the blend of academic, industry and investment backgrounds of its investment professionals.
PanAgora’s client base is comprised of institutional clients across the globe, such as sovereign wealth funds, sub-advisory, public & private retirement funds, endowments & foundations as well as strategic partnerships.
Irish Life Group, founded in 1939, is Ireland’s leading life assurance, pensions and investment management company.
Irish Life provides life assurance, pension and investment products to individuals and small business owners, distributed through independent brokers, bank branches and direct, as well as group risk and group defined contribution pension solutions for employers and affinity groups, through pension advisory consultants and independent brokers.
Its fund management business, Irish Life Investment Managers (ILIM), is the country’s largest manager of life assurance and pension assets.
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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) |
Dec. 31 |
Sept. 30 |
Dec. 31 |
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 products)(1) |
9,045 | 10,337 | 8,494 | 35,461 |
33,902 |
|
Policyholder deposits (segregated funds): |
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|
Individual products |
4,705 | 3,833 | 5,357 | 16,668 |
17,037 |
|
Group products |
1,641 | 1,790 | 2,009 | 7,807 |
7,848 |
|
Premiums and deposits reported in the financial statements(1) |
15,391 | 15,960 | 15,860 | 59,936 |
58,787 |
|
Self-funded premium equivalents (ASO contracts)(2) |
802 | 744 | 720 | 3,068 |
2,827 |
|
Proprietary mutual funds & institutional deposits(2) |
21,390 | 17,878 | 16,065 | 76,258 |
61,490 |
|
Total premiums and deposits(1,2) |
37,583 | 34,582 | 32,645 | 139,262 |
123,104 |
|
Fee and other income(1) |
1,420 | 1,483 | 1,439 | 5,819 |
5,608 |
|
Net policyholder benefits, dividends and experience refunds |
8,496 | 7,653 | 7,618 | 31,566 |
30,387 |
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Earnings |
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|
Net earnings — common shareholders |
710 | 689 | 392 | 2,961 |
2,149 |
| Adjustments(3) | - | 56 | 342 | 56 |
498 |
| Adjusted net earnings — common shareholders(3) | 710 | 745 | 734 | 3,017 |
2,647 |
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Per common share |
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Basic earnings |
0.719 | 0.697 | 0.397 | 2.996 |
2.173 |
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Adjusted net earnings — common shareholders (3) |
0.719 | 0.754 | 0.742 | 3.052 |
2.676 |
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Dividends paid |
0.3890 | 0.3890 | 0.3670 | 1.556 |
1.468 |
|
Book value |
22.08 | 21.25 | 20.11 | 22.08 |
20.11 |
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Return on common shareholders' equity |
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| Net earnings | 14.0% | 12.8% | 10.9% | 14.0% |
10.9% |
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Adjusted net earnings(3) |
14.3% | 14.7% | 13.4% | 14.3% |
13.4% |
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Total assets per financial statements(4) |
427,689 | 429,082 | 419,838 | 427,689 |
419,838 |
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Proprietary mutual funds and institutional net assets(5) |
281,664 | 293,766 | 278,954 | 281,664 |
278,954 |
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Total assets under management(5) |
709,353 | 722,848 | 698,792 | 709,353 |
698,792 |
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Other assets under administration(6) |
689,520 | 718,410 | 651,121 | 689,520 |
651,121 |
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Total assets under administration |
1,398,873 | 1,441,258 | 1,349,913 | 1,398,873 |
1,349,913 |
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Total equity |
27,398 | 26,624 | 25,536 | 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 note 2 to Lifeco's December 31, 2018 annual consolidated financial statements.
(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 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.
(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 2018, restructuring costs of $56 million and in 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) Comparative figures for 2017 have been reclassified as described in note 2 and note 34 to Lifeco'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 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.
(6) Other assets under administration (a non-IFRS financial measure) include 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 |
|
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 |
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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.
