Great-West Lifeco reported shareholders' net earnings of $960 million for the first quarter of 2024.
This is an increase of 61per cent over the $595 million in net earnings attributable to shareholders reported in the first quarter of 2023.
Paul Mahon, President and CEO of Great-West Lifeco, pointed out that this is the third consecutive quarter of record base earnings "supported by the deliberate actions we’ve taken to re-position and strengthen our portfolio of businesses.”
Net earnings from insurance and investments
Earnings from insurance activities across all divisions reached $797 million in the first quarter of 2024, compared with the $700 million reported in the same quarter of 2023.
Unlike in the previous year, the company does not break down earnings from insurance operations by operating segment in its Management's Discussion and Analysis. It can be found in the supplementary information.
Net earnings from investment activities for all divisions totaled $760 million in the first quarter of 2024, compared with $314 million in the same quarter of 2023.
Canada
For Canadian operations, which include the insurer Canada Life, net earnings attributable to shareholders reached $353 million in the first quarter of 2024, compared with $233 million in the same quarter of 2023.
In its press release issued at the close of trading on May 1, the company states that these earnings are attributable to "group disability results driven by improved morbidity experience", in addition to the integration of Investment Planning Counsel (IPC) and Value Partners.
In the highlights presented in the MD&A, the company states that this integration contributed to a $296 million increase in net asset inflows in Canada Individual Wealth Management compared with the fourth quarter of 2023.
Additional information provided by the company shows that earnings from insurance activities in Canada were $392 million in the first quarter of 2024, compared with $341 million in the same quarter of 2023.
Net earnings from investment activities amounted to $185 million for Canadian operations in the first quarter of 2024, compared with a loss of $23 million in the same quarter of 2023.
For Canada Life, the company's main operating subsidiary in the country, Great-West reports that the Life Insurance Capital Adequacy Test (LICAT) ratio reached 129 per cent at March 31, 2024. The LCAT was 127 per cent a year earlier.
United States
In the United States, net income from continuing operations was $233 million in the first quarter of 2024, compared with $170 million in the same quarter of 2023.
In its Management Discussion and Analysis, the company notes that it completed the sale of Putnam Investments to Franklin Resources on January 1, 2024. Comparative results have been restated to exclude discontinued operations related to this transaction.
As a result, net earnings attributable to common shareholders from U.S. operations were $162 million in the first quarter of 2024, compared with $151 million in the same quarter of 2023.
U.S. insurance operations posted net earnings of $2 million in the first quarter of 2024, compared with net earnings of $17 million in the same quarter of 2023.
Net earnings from investment activities amounted to $386 million for U.S. operations in the first quarter of 2024, compared with net earnings of $356 million in the same quarter of 2023.
Europe
European operations posted net earnings attributable to shareholders of $187 million in the first quarter of 2024, compared with $40 million in the same quarter of 2023.
Insurance operations in Europe posted net earnings of $193 million in the first quarter of 2024, compared with $182 million in the same quarter of 2023.
Net earnings from investment activities amounted to $101 million for European operations in the first quarter of 2024, compared with a net loss of $58 million in the same quarter of 2023.
Capital and Risk Solutions
Finally, for the Capital and Risk Solutions segment, net earnings attributable to shareholders were $260 million in the first quarter of 2024, compared with $184 million in the first quarter of 2023.
Earnings from insurance activities in this segment were $210 million in the first quarter of 2024, compared with $160 million in the same quarter of 2023.
Net earnings from investment activities were $80 million for this segment in the first quarter of 2024, compared with net earnings of $42 million in the same quarter of 2023.