August 3, 2018 11:30
Great-West Lifeco achieved a net income attributed to common shareholders of $ 831 million ($M) in the second quarter of 2018, an increase of 17% compared to the adjusted net income recorded in the second quarter of 2017.
Established to 712 M$ for the second quarter of 2017, the adjusted net income does not take into account the costs of the restructuring of 2017. Otherwise, net income would have been$ 585 Million for this quarter of 2017. Great-West explained that the adjusted net income reflects the earnings growth in each sector.
In the preparation of its net income for the second quarter of 2018, Great-West, however, has taken into account the restructuring of the american financing. This restructuring has been effected as a result of the tax reform us, ” explains the insurer in its results. It also flows from the refinancing of certain debt instruments, ” he adds. Great-West explained that these two factors had a net positive impact of$ 60 Million after-tax.
Performance and capital solid
“The company recorded strong results in terms of operational performance and profit growth during the second quarter,” said Paul Mahon, president and chief executive officer of Great-West Lifeco. We are increasing our investment in digital tools to improve customer service and operational efficiency, plus the strategic measures that we take to all our activities in order to promote growth in our key markets. “
The ratio of the capital adequacy Test of life insurance companies (TSAV) of Great-West amounted to 133 % as at June 30, 2018. The insurer continues to capitalize. During the second quarter of 2018, the company, through its subsidiaries, has issued senior notes in the amount of$ 1,024 MILLION ($800 MILLION US) and she has bought two tranches of subordinated debentures for a total of 899 M$.
Subscriptions up 32 %
Sales of Great-West Lifeco in the second quarter of 2018 amounted to 33.1 G$, an increase of 32 % compared to the second quarter of 2017, which is explained by increases of 45 % and 14 % recorded within the operating american and european operations, respectively.
For their part, the fees and other revenues amounted to$ 1.5 billion, an increase of 4 % compared to the second quarter of 2017, which is explained by the growth of the business in all the sectors and the performance of the markets.
Profits and lower expenses in Canada
Good results experience in the group and the changes in actuarial favourable related to the insurance contract liabilities have enabled the canadian operations to increase net income by 7 % in the second quarter of 2018, compared to the second quarter of 2017.
The canadian operations has also made progress towards the target it has set to reduce its annual expenses. It amounted to$ 200 Million before tax. The insurer revealed that, as at 30 June, it had achieved reductions annualized expenses of approximately$ 170 Million before tax.