Net profit up 8.9% for Great-West Lifeco

Great-West Lifeco recorded a positive start to the year.

The insurer declares a net profit of 770 million dollars (M$) in the first quarter of 2022, compared to $707 million in the first quarter of 2021. This result is up by 8.9% or $63 million.

Setback in Canada

Four of the insurer’s five sectors performed better in the first quarter of 2022 than in the first quarter of 2021: +$24m in Europe, +$24m for the Capital and Risk Management Solutions sector, +16m $ in the United States and +$11 million for General Operations.

Great-West Lifeco declined in Canada. This operation, which includes Canada Lifeposted net income of $275 million in the first quarter of 2022, compared to $287 million in the first quarter of 2021. This is a decrease of 4.2% or $12 million which is explained “by the unfavorable results of the morbidity chapter in the Group Client unit, as well as the adverse impact of new business and policyholder behavior in the Individual Client unit”.

Premiums and deposits

Great-West Lifeco’s premiums and deposits were $44.2 billion (B$) in the first quarter of 2022, compared to $45.1 billion in the first quarter of 2021. They were down 2% or $905m $.

Premiums and deposits decreased by 8% or $1.7 billion in the United States and by 2.1% or $154 million in the Capital and Risk Management Solutions sector.

On the other hand, they increased by 6.6% or $557 million in Europe and by 5.4% or $416 million in Canada.

Domestically, they pass the $8 billion mark for the very first time. In detail, we note that the premiums and deposits of the two Canadian sub-sectors increased: +7.9% or $372 million in group insurance, to reach $5.1 billion, and +1.5% or $44 million $ in individual insurance, to reach $3 billion.

Subscriptions

Great-West Lifeco’s total sales reached $75.5 billion in the first quarter of 2022, compared to $110.9 billion in the first quarter of 2021. It was down 31.9% or $35.4 billion.

Sales were down 36.5% or $36.1 billion in the United States, which was “primarily attributable to lower sales in the large case market ofEmpower as well as lower subscriptions to mutual funds and institutional accounts of Putnam», Explains the insurer. The latter specifies that “subscriptions for the first quarter of 2021 included a subscription in the large business market of Empower linked to a new client which has approximately 316,000 participants”.

In Canada, subscriptions reached $4.3 billion in the first quarter of 2022, compared to $4.7 billion in the first quarter of 2021. They fell by 9.1% or $429 million, “mainly due to lower sales of group wealth management and insurance products in the large case market, as well as the decline in sales of individual mutual fund products,” said Great-West Lifeco.

Thus, we note that the subscriptions of the two Canadian sub-sectors fell: -9.3% or $312 million in individual insurance, to reach $3 billion, and -8.5% or $117 million in group insurance, to reach $1.3 billion.

Conversely, sales increased by 15.7% or $1.1 billion in Europe, “mainly due to higher sales of annuity products and equity release mortgages in the United Kingdom and higher subscriptions of wealth management products from all operating units,” says the insurer, which specifies that “these items were partially offset by the impact of currency fluctuations.

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