GWL's reports lower earnings, announces Dave Johnston’s retirement

Great-West Lifeco reported outstanding worldwide sales results for the first three months of 2016, but overall earnings were down by 12%. In Canada, the company posted gains in individual insurance, but saw marked declines in earnings from its wealth management and group insurance divisions. The company also announced that its president and chief operating officer for Canada, Dave Johnston, will be retiring in August.

GWL is reporting worldwide sales of $48 billion in the first quarter of 2016, which is 73% higher than in the first three months of last year. However, net earnings attributable to common shareholders were down to $620 million, a 12% decline from the $700 million in Q1 2015.

Canadian net earnings

In Canada, net earnings attributable to common shareholders for the first quarter came to $276 million, down 8% from the $299 million reported in Q1 2015. Earnings attributed to individual insurance in Canada were up almost 18% to $92 million, while Canadian corporate earnings improved from a $9 million loss last year to $12 million this quarter. Q1 earnings from the insurer's Canadian wealth management and group insurance operations declined: the former was down by about 19% to $101 million and the latter plunged by 47% to $67 million.

Great-West Lifeco has also announced that Dave Johnston will be retiring in the third quarter of this year. Stefan Kristjanson, who is currently serving as the insurer's executive vice-president for strategy & transformation, has been appointed to succeed Johnston effective August 6, 2016.

Stefan Kristjanson appointed

Kristjanson has been with Great-West for 26 years where he has held a number of roles, including head of the insurer's Canadian group insurance business. He also led the integration of the company's Irish Life business in Ireland.

“Stefan's deep understanding of our Canadian operations and his recent focus on strategy and transformation position him well to lead our growth in Canada,” commented Great-West Lifeco president and CEO Paul Mahon, who added that Kristjanson will work closely with Johnston to ensure a smooth transition.