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Great-West base earnings increase 17% in Q2, but profits slide

Great-West profits fall

Great-West Lifeco Inc. says its net profit decreased 9.2 per cent in its latest quarter compared with a year earlier when it benefited from a bounce back from COVID-19 pandemic related shocks in the prior quarter.

The Winnipeg-based insurer says its net income attributable to shareholders was $784 million or 84 cents per diluted share, down from $863 million or 93 cents per share a year earlier.

Excluding one-time items, "base" earnings were $826 million or 89 cents per share, up 17 per cent from $706 million or 76 cents per share in the second quarter of 2020.

The increase was due to the $63-million contribution from Massachusetts Mutual Life Insurance Company acquired in December, higher equity markets and favourable morbidity experience in Europe and Canada.

Great-West was expected to report 79 cents per share in base earnings, according to financial data firm Refinitiv.

Canada was the biggest contributor to base earnings at $293 million, but that was down seven per cent from the prior year. U.S. earnings more than doubled to $190 million while Europe rose 2.8 per cent to $184 million.

"Our second quarter results were driven by strong performance across segments with solid sales activity. Just as importantly, our business integration activities in the U.S. remain on track to deliver targeted financial results and strong customer retention," stated CEO Paul Mahon.

Consolidated assets under administration were $2.2 trillion as of June 30, up nine per cent from six months earlier.



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