You are here
Insurance 

Difficult quarter for Great-West Lifeco

by

Aurélia Morvan

31 July 2019 13:30

Great-West Lifeco has announced a net profit of $ 459 million ($M) for the second quarter of 2019. This represents a drop of 45 % compared to the second quarter of 2018, when the net income was of to 831 M$. The group explains this decrease by the fact that ” the net income of Lifeco in the second quarter of 2019 includes a net charge of$ 199 Million related to the sale of life insurance and individual annuities in the United States “.

In regards to the single canadian operations, the net profit amounted to$ 280 Million in the second quarter of 2019, compared to$ 334 Million for the second quarter of 2018. This is a decrease of 16%, “mainly due to the important contribution of the changes in actuarial basis related to the liabilities relating to insurance contracts in 2018, which is not reproduced for the period under review,” said the group.

Premiums and deposits increased slightly

For the second quarter of 2019, the total amount of premiums and deposits Great-West Lifeco amounted to$ 34.3 Million. This represents an increase of 0.9% compared to the second quarter of 2018, which had a total of$34 Million.

For the canadian operations, the total amount of premiums and deposits amounted to$ 6.4 Million in the second quarter of 2019, or 18.7% of the total subscriptions recorded by the group during this quarter. The total premiums for the canadian market increased by 1.6 % compared to the second quarter of 2018. The total amount of premiums was$ 6.3 Million, which represented 18.5 % of the total subscriptions recorded by the group in the second quarter of 2018.

Subscriptions in decline in Canada

As for the subscriptions, they amounted to 34.3 billion dollars (G$) for the whole group in the second quarter of 2019. This is an increase of 3.6% compared to the second quarter of 2018, which had a total of 33.1 G$. The company says this increase ” primarily due to higher sales in the european operations “.

For the canadian operations, the subscriptions amounted to$ 2.9 billion for the second quarter of 2019, 8.5 % of the total subscriptions recorded by the group during this quarter. This represents a decrease of 3.3% compared to the second quarter of 2018. During this fiscal year, subscriptions to the canadian operations were$ 3 billion, or 9% of the total subscriptions recorded by the group in the second quarter of 2018.

It is to be noted that in 2020, the three life insurance companies canada of Great-West Lifeco, the Great-West, la London Life and Canada Life, will be grouped under the same brand called The Insurance Company the Canada lifeor Canada Life.

Related posts

Leave a Comment