The Canadian Press - ONLINE EDITION

Great-West Lifeco Q2 profit rises 18 per cent to $615 million

  • Print

WINNIPEG - Great-West Lifeco Inc.. (TSX:GWO) says it had $615 million of net income in the second quarter, an 18 per cent increase from the same time last year.

The profit amounted to 61.6 cents per common share, up from 54.8 cents a year earlier, and in line with analyst estimates of 62 cents per share.

Irish Life, which was acquired last year by the Winnipeg-based company, contributed $57 million of net income in the three months ended June 30 — compared with $52 million in the first quarter of 2014 ended March 31.

Great-West said its Canadian segment, which includes London Life and Canada Life, contributed $304 million of the quarter's overall net income, up eight per cent from a year before.

Its U.S. operations, which include Great-West Financial and Putnam Investments, had $69 million of net income down from $73 million. Its European segment, which includes Irish Life, had $246 million of net income up from $178 million a year ago.

Barclays analyst John Aiken said the company's results were "solid" but "unlikely to generate much investor excitement."

Successful cost-containment strategies, the acquisition of Irish Life and strong performance in Canada were highlighted as positives in Aiken's note.

However, Great-West Life's U.S. operations have reported only marginal earnings, effectively neutralizing growth of its book value. That, said Aiken, could affect Great-West's stock price in the near future.

"Investors who believe in the Irish Life strategy are already behind the stock and, with only modest profitability improvement in Putnam, there is little in the second quarter’s earnings to reverse the opinion of those who are neutral or negative on the name," said Aiken.

Great-West's premiums and deposits totalled $20.35 billion, up from $15.2 billion a year earlier. Fee and other income was $1,11 billion, up from $831 million in the second quarter of 2013.

Great-West Life is part of the Power Corporation (TSX:POW) group of companies, along with IGM Financial (TSX:IGM) and Power Financial Corp. (TSX:PWF). Power Corporation's Gesca subsidiary is one-third owner of The Canadian Press.

Fact Check

Fact Check

Have you found an error, or know of something we’ve missed in one of our stories?
Please use the form below and let us know.

* Required
  • Please post the headline of the story or the title of the video with the error.

  • Please post exactly what was wrong with the story.

  • Please indicate your source for the correct information.

  • Yes

    No

  • This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.

  • Cancel

Having problems with the form?

Contact Us Directly
  • Print

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

Have Your Say

New to commenting? Check out our Frequently Asked Questions.

Have Your Say

Comments are open to Winnipeg Free Press print or e-edition subscribers only. why?

Have Your Say

Comments are open to Winnipeg Free Press Subscribers only. why?

The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.

letters

Make text: Larger | Smaller

LATEST VIDEO

It’s the End Of the Term And They Know It, Part Two

View more like this

Photo Store Gallery

  • An American White Pelican takes flight from the banks of the Red River in Lockport, MB. A group of pelicans is referred to as a ‘pod’ and the American White Pelican is the only pelican species to have a horn on its bill. May 16, 2012. SARAH O. SWENSON / WINNIPEG FREE PRESS
  • JOE BRYKSA/WINNIPEG FREE PRESS Local- A large osprey lands in it's nest in a hydro pole on Hyw 59  near the Hillside Beach turnoff turn off. Osprey a large narrow winged hawk which can have a wingspan of over 54 inches are making a incredible recovery since pesticide use of the 1950's and  1960's- For the last two decades these fish hawks have been reappearing in the Lake Winnipeg area- Aug 03, 2005

View More Gallery Photos

Poll

Has the attack on Parliament hill shaken your faith in Canada's ability to protect its citizens from terrorist threats?

View Results

View Related Story

Ads by Google