Great-West Lifeco reached a milestone in 2021.
The insurer reported full-year net earnings of $3.1 billion (B), up from $2.9 B for 2020. The increase of 6.3 per cent or $185 million is “primarily due to an increase in base earnings and favourable market-related impacts on liabilities,” Great-West Lifeco says.
The company adds that “The increase was partially offset by the positive impact in 2020 of the revaluation of a deferred tax asset and the net gain on the sale of GLC…as well as a net gain of $94 million related to the sale of IPSI in the third quarter of 2020.”
“In addition, the Company had higher transaction costs related to the MassMutual and Personal Capital acquisitions and a provision for payments relating to the Company's acquisition of The Canada Life Assurance Company.”
For the fourth quarter of 2021 alone, Great-West Lifeco reported net earnings of $765 million, compared with $912 million in Q4 2020, for a decrease of 16.1 per cent or $147 million.
Three out of five segments advanced in 2021, including Canada.
Upturn in Canada
The Canada segment, which includes Canada Life, had net income of $1.2 billion in 2021, up from $1.1 billion in 2020. This increase of 10.9 per cent or $117 million was driven by base earnings growth of $14 million “primarily due to favourable morbidity experience in Group Customer, higher impact of new business and fee income.”
Earnings were also boosted by improved results related to items excluded from base earnings, markets, actuarial assumption changes and other management actions.
For the fourth quarter of 2021 alone, Great-West Lifeco reported net income of $307 million, compared with $300 million in Q4 2020. The corresponding increase is 3.2 per cent or $7 million.
Other segments
Two other segments grew year-over-year. In the U.S., net earnings climbed by 31.3 per cent or $119 million in 2021 to $499 million. In Europe, net earnings increased by 6.9 per cent or $63 million in 2021 to $976 million.
The remaining two segments faltered. Capital and Risk Solutions saw its net income slide by 13.3 per cent or $82 million in 2021 to $532 million. Lifeco Corporate reported a net loss of $66 million, versus a net loss of $34 million in 2020, equal to a $32 million decline.
Premiums and deposits
Great-West Lifeco's premiums and deposits were $168.8 billion in 2021. They thus decreased by 1.5 per cent or $2.5 billion from $171.3 billion in 2020.
Premiums and deposits were $47.6 billion in Q4 2021, compared with $40.8 billion in the fourth quarter of 2020. This represents an increase of 16.7 per cent or $6.8 billion.
In Canada, premiums and deposits were $29.4 billion in 2021, up from $25.8 billion in 2020. This result amounts to an increase of 13.6 per cent or $3.5 billion.
Premiums and deposits were $7.9 billion in the fourth quarter of 2021, compared with $7 billion in Q4 2020. The corresponding increase was 12.8 per cent or $901 million.
Looking at the results in closer detail:
- Individual insurance in Canada: Premiums and deposits grew by 10.4 per cent or $1.1 billion in 2021 to $11.7 billion. They increased by 7.3 per cent or $223 million in Q4 2021 to $3.3 billion.
- Group insurance in Canada: Premiums and deposits increased by 15.8 per cent or $2.4 billion to $17.6 billion. They increased by 17.1 per cent or $678 million in Q4 2021 to $4.6 billion.
Capital and Risk Solutions premiums and deposits also advanced in 2021, by 52.2 per cent or $10.1 billion. In contrast, premiums and deposits dipped by 14.5 per cent or $13.6 billion in the U.S., and by 8 per cent or $2.6 billion in Europe.
Sales
Great-West Lifeco's total sales reached $247.6 billion in 2021, compared with $178.1 billion in 2020. The increase amounts to 39 per cent or $69.5 billion.
Total sales were $51.5 billion in the fourth quarter of 2021, compared with $38 billion in Q4 2020, for an increase of 35.3 per cent or $13.4 billion.
In Canada, Great-West Lifeco reported sales of $16.4 billion in 2021, compared with $12.3 billion in 2020. This represents an increase of 33.8 per cent or $4.1 billion.
Sales were $4.9 billion in the fourth quarter of 2021, versus $3.7 billion in Q4 of 2020, equal to an increase of 30.9 per cent or $1.1 billion.
Looking at the results in closer detail:
- Individual insurance in Canada: Sales climbed by 24.6 per cent or $2.3 billion in 2021 to $11.9 billion. Sales grew by 15.7 per cent or $460 million in the fourth quarter of 2021 to $3.4 billion.
- Group insurance in Canada: Sales increased by 66.1 per cent or $1.8 billion in 2021 to $4.5 billion. They soared by 87 per cent or $692 million in the fourth quarter of 2021 to $1.5 billion.
In 2021, sales also increased in the U.S., by 49.5 per cent or $67.7 billion. In contrast, sales in Europe declined by 8.2 per cent or $2.4 billion.
