August 3, 2017 11:30
In the second quarter of 2017, the net earnings of Great-West Lifeco, which includes restructuring costs of$ 127 Million, mainly related to the restructuring of its canadian operations, amounted to$ 585 Million. Excluding these costs, adjusted net income for the quarter was $ 712 Million, up 6 % compared to the corresponding quarter of 2016 (671 M$).
According to the company, the increase in adjusted net earnings reflects the solid results, as well as the impact of the initiatives supported expense management.
«Solid operational performance»
«We are very satisfied with the results for the second quarter, reflecting the solid operational performance of all activities and territories, said Paul Mahon, president and chief executive officer. The restructuring initiatives put in place at the beginning of the year give rise to the cost savings expected. Our expense management is prudent and we continue to invest in our core markets and in new capabilities to improve customer service and drive future growth. «
Lower profit in Canada
The adjusted net earnings of the canadian operations was $ 311 Million during the second quarter, down almost 5% compared to the same quarter of 2016 (327 M$). According to the company, this decrease is mainly attributable to the decrease in the contribution of investments.
In addition, sales of the canadian operations of Great-West Lifeco in the second quarter increased 21 % to$ 3.2 billion. This increase reflects the effect of the subscriptions of individual investment funds and group annuity collective single premium, as well as higher sales of products to group insurance, informed the company. .
Transformation of its canadian operations
After having refocused its canadian operations around customers individual and collective in November 2016, Great-West Lifeco has continued the transformation of its canadian operations, announcing the reduction of its workforce in Canada of approximately 1 500 jobs over the next two years. These decisions should allow the company to deliver reductions in annual loads of the order of$ 200 Million, before tax. Also, at June 30, 2017, the company has achieved reductions on an annualized basis of approximately$ 46 Million before tax.