Great-West Lifeco reports fourth quarter 2017 results; announces 6% dividend increase
Sales grow 13% and adjusted net earnings up 5% year-over-year
Great-West Lifeco Inc. (Lifeco or the Company) today announced net earnings attributable to common shareholders of $392 million or $0.397 per common share for the fourth quarter of 2017 compared to $676 million or $0.686 per common share for the same quarter last year.
Lifeco's net earnings for the fourth quarter of 2017 included a net charge of $216 million from the impact of U.S. tax reform, a net charge on the disposal of an equity investment of $122 million and restructuring costs of $4 million, which reduced earnings per common share by $0.345. Excluding these items, adjusted net earnings were $734 million compared to adjusted net earnings of $698 million for the fourth quarter of 2016, up 5%, primarily driven by strong results in the Canada segment.
“The Company’s operating performance was solid in the fourth quarter reflecting strong top-line results and controlled expense growth,” said Paul Mahon, President and CEO, Great-West Lifeco. “Strategic actions taken in the quarter and throughout the year, including transformation initiatives in Canada and tuck-in acquisitions and investments across our geographies, set the stage for stronger future earnings growth.”
Highlights – In Quarter
- U.S. tax reform reduced net earnings by $216 million
- Dividend increase of 6%
- Sales of $30.3 billion up 13%
- Sale of equity investment in Nissay Asset Management Corporation
- Capital strength and financial flexibility maintained