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Great-West Lifeco profits down as it reports $459 million net income

TORONTO — Great-West Lifeco Inc. says profits were down in the second quarter compared with last year as it took a charge and had some investment impairments.
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TORONTO — Great-West Lifeco Inc. says profits were down in the second quarter compared with last year as it took a charge and had some investment impairments.

The insurance company says it had net earnings of $459 million, or 49 cents per share for the quarter ending June 30, compared with earnings of $831 million or 84 cents per share last year.

Adjusted earnings, which exclude a $199 million charge from the sale of part of its U.S. operations, came in at $658 million or 70 cents per share to meet analyst expectations according to financial markets data firm Refinitiv.

The company says adjusted earnings were also affected by changes to insurance contract liabilities and the impact of U.K. retail related investment impairments.

Great-West says sales were up $1.2 billion to $34.3 billion, an increase of four per cent from the second quarter last year, largely on higher sales in Europe.

On July 19, the company’s board approved a plan to combine its Great-West Life, London Life and Canada Life divisions and their holding companies into a single company to be known as The Canada Life Assurance Company.