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Great-West Lifeco is on track to achieve its target of costs reduction


Hubert Roy

1 November 2018 11:30

Photo : Freepik

In announcing that it would cut 1 500 jobs in the spring of 2017 Great-West Lifeco had for objective to realize economies of scale with annual of 200 million dollars (M$) by the end of the first quarter of 2019 in Canada. This target is about to be reached.

Each quarter, Great-West Lifeco is an update on this goal. The portfolio company has done so again during the disclosure of its results for the third quarter of 2018. At September 30, 2018, it is estimated that$ 180 Million the sum of the annual savings it has made since this announcement.

Net profit of 689 Million$

Great-West Lifeco announced that it has achieved a net profit of 689 Million during the third quarter of 2018. This profit would have been higher, had it not been for the recognition of a charge of$ 56 Million related to the costs of restructuring in the United Kingdom. A year ago, the holding company had reported a net profit of$ 581 Million in the third quarter of 2017.

“The company has recorded solid operational results for the third quarter, marked by strong sales growth, particularly within the european operations,” said Paul Mahon, president and chief executive officer of Great-West Lifeco. Our investments aimed at improving customer service and operational efficiency are beginning to bear fruit and our excellent location in the capital allows us to seize opportunities that support our strategic objectives. “

The weight of Canada

Great-West Lifeco disclose also the benefit of its activities in Canada. It was$ 315 Million in the third quarter of 2018, is$ 19 Million more than in the same period of 2017. The insurer attributes this increase to 6 % ” to the continued strength of the results in terms of morbidity for the unit collective Client and to the increase of the contribution of changes in actuarial basis related to the liabilities relating to insurance contracts “.

Since the beginning of 2018, the net income realized by Great-West Lifeco in Canada is 965 M$ 229 M$ more than in the first three quarters of 2017. On a global scale, the cumulative net profit of the holding company amounted to 2 251 G$ from the beginning of 2017. It is 494 M$ more than for the first nine months of 2017.

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