Great-West Lifeco Inc.’s acquisition of Canada Life Financial Corp. has helped boost earnings for the Winnipeg-based insurance giant.
The Winnipeg-based company net income attributable to common shareholders, including restructuring charges related to last year’s acquisition of Canada Life, came in at $376 million for the three months ended March 31 vs $253 million reported a year ago, an increase of 49%. On a per share basis, net earnings after restructuring, were 84.1¢ vs 69¢ a year ago, a gain of 22%.
The company reported total premiums and deposits for the three month period were up 45% to $9.7 billion vs $6.7 billion.
Great-West Lifeco is the umbrella company for The Great-West Life Assurance Co., Canada Life, London Life Insurance Co. and Great-West Life & Annuity Insurance Co.
Great-West beat out Manulife Financial Corp. in a $7.3-billion bidding war for Canada Life last February.
The company said Canada/Europe consolidated first quarter net earnings for the group jumped 85% to $224 million. “The increase was due to strong operating earnings for Great-West Life, London Life, and CLFC’s Canadian and European businesses,” the company said in a release. The Canada Life results were not a part of last year’s first quarter numbers.
Total premiums and deposits for the Canada/Europe segment were up $3.9 billion from a year ago thanks to the inclusion of Canada Life in 2004 together with solid increases in segregated funds deposits.
In the U.S net earnings were up 28% to $159 million, the increase was primarily related to favourable results for financial services reflecting the inclusion of CLFC in 2004.
Great-West Lifeco reported total assets under administration as of March 31 of $165.5 billion vs $93.4 billion a year earlier, a jump of 77%
Great-West Q1 earnings up 49%
- By: IE Staff
- April 29, 2004 April 29, 2004
- 12:50