EX-99 3 pressrelease.htm

Great-West

LIFECO Inc.

 

RELEASE

 

 

Readers are referred to the caution regarding Forward-Looking Information and Non-GAAP Financial Measures at the end of this Release.

 

TSX:GWO

 

Great-West Lifeco reports full year 2006 results and dividend increase

 

Winnipeg, February 15, 2007 ... Great-West Lifeco Inc. (Lifeco) has reported net income attributable to common shareholders of $491 million for the three months ended December 31, 2006 compared to net income of $456 million reported a year ago. On a per share basis, this result represents $0.550 per common share for the three months ended December 31, 2006, an increase of 7% (14% on a constant currency basis) compared to $0.512 per common share for 2005.

 

For the twelve months ended December 31, 2006, net income attributable to common shareholders was $1,875 million compared to $1,742 million reported a year ago. On a per share basis, this result represents $2.104 per common share for the twelve months ended December 31, 2006, an increase of 8% (15% on a constant currency basis) compared to $1.955 per common share for 2005. The 2005 results included restructuring charges and provisions for expected losses arising from hurricane damage.

 

Lifeco experienced solid operating results in its Canada and Europe reporting segments and significant growth in net income attributable to common shareholders.

 

Highlights

•

On February 1, 2007 Lifeco announced that it had entered into an agreement with Marsh & McLennan Companies, Inc. whereby it will acquire the asset management business of Putnam Investments Trust, and Lifeco’s subsidiary, The Great-West Life Assurance Company, will acquire Putnam's 25% interest in T.H. Lee Partners for approximately US$350 million (CDN$410 million). The parties to the agreement will make an election under section 338(h)(10) of the U.S. Internal Revenue Code that will result in a tax benefit that Lifeco intends to securitize for approximately US $550 million (CDN $644 million). In aggregate these transactions represent a value of US $3.9 billion (CDN $4.6 billion).

•

Quarterly dividends declared were $0.255 per common share, an increase of 1.5 cents, payable March 30, 2007. Dividends paid on common shares for the twelve months ended December 31, 2006 were 15% higher than a year ago.

•

Earnings per common share for the fourth quarter of 2006 increased 7% (14% on a constant currency basis) compared to a year ago.

•

Return on common shareholders’ equity was 20.1% for the twelve months ended December 31, 2006 compared to 20.7% a year ago.

•

Assets under administration at December 31, 2006 totalled $210.6 billion, up $33.3 billion from December 31, 2005 levels.

 

 

- 2 -

 

 

Consolidated net earnings for Lifeco are the net earnings of The Great-West Life Assurance Company (Great-West Life), Canada Life Financial Corporation (CLFC), London Life Insurance Company (London Life) and Great-West Life & Annuity Insurance Company (GWL&A), together with Lifeco's corporate results.

 

CANADA

 

Consolidated net earnings of the Canadian segment of Lifeco attributable to common shareholders for the fourth quarter of 2006 increased 30% to $223 million from $171 million a year ago. For the twelve months ended December 31, 2006, earnings were up 16% to $893 million from $773 million in 2005.

 

Total sales for the twelve months ended December 31, 2006 were $8.3 billion, an increase of 27% over 2005 levels.

 

Total assets under administration at December 31, 2006 were $94.6 billion, up $6.5 billion from December 31, 2005.

 

UNITED STATES

 

Consolidated net earnings of the United States segment of Lifeco attributable to common shareholders for the fourth quarter of 2006 in US $ decreased 8% to $113 million from $123 million a year ago. For the twelve months ended December 31, 2006, earnings decreased 2% to $452 million from $459 million at December 31, 2005. In Canadian dollars, earnings for the twelve months ended December 31, 2006 were $511 million compared to $606 million in 2005.

 

Total sales for the twelve months ended December 31, 2006 were US $2.3 billion, an increase of 15% over 2005 levels.

 

Total assets under administration of US $41.2 billion at December 31, 2006 were up $3.3 billion from December 31, 2005.

 

EUROPE

 

Consolidated net earnings of the European segment of Lifeco include operating currencies in British Pounds Sterling £, Euros €, US $ and Canadian $. For the fourth quarter of 2006, on a constant currency basis, net earnings attributable to common shareholders increased 31% compared to 2005. For the twelve months ended December 31, 2006, on a constant currency basis, earnings increased 34%. In Canadian dollars, 2006 earnings were $150 million and $486 million for the fourth quarter and twelve months respectively, compared to $122 million and $399 million for 2005.

 

Total sales for the twelve months ended December 31, 2006 were Canadian $10.1 billion, an increase of 24% on a constant currency basis over 2005 levels.

 

Total assets under administration at December 31, 2006 were Canadian $67.8 billion, up $22.9 billion from December 31, 2005.

 

 

- 3 -

 

CORPORATE

 

Corporate net earnings for Lifeco attributable to common shareholders were a net charge of $10 million for the fourth quarter of 2006, and a net charge of $15 million for the twelve months ended

December 31, 2006 compared to net income of $2 million for the fourth quarter of 2005 and a net charge of $36 million for the twelve months ended December 31, 2005.

 

Corporate net earnings for Lifeco attributable to common shareholders in 2005 included restructuring costs related to the acquisition of Canada Life Financial Corporation of $17 million after-tax.

 

CONSTANT CURRENCY

 

Reported earnings in 2006 were impacted by movement in foreign currency translation rates as well as the expiry of favourable forward foreign exchange contracts. Absent these items, net income attributable to common shareholders in 2006 would have been approximately $132 million higher than reported.

 

On a constant currency basis, earnings per common share for the fourth quarter and full year increased 14% and 15%, respectively.

 

QUARTERLY DIVIDENDS

 

At its meeting today, the Board of Directors approved a quarterly dividend of $0.255 per share on the common shares of the Company payable March 30, 2007 to shareholders of record at the close of business March 2, 2007.

 

In addition, the Directors approved quarterly dividends on:

 

•

Series D First Preferred Shares $0.293750 per share;

 

•

Series E First Preferred Shares $0.30 per share;

 

•

Series F First Preferred Shares $0.36875 per share;

 

•

Series G First Preferred Shares of $0.325 per share;

 

•

Series H First Preferred Shares of $0.30313 per share; and

 

•

Series I First Preferred Shares of $0.28125 per share,

all payable March 30, 2007 to shareholders of record at the close of business March 2, 2007.

 

GREAT-WEST LIFECO

 

Great-West Lifeco Inc. (TSX:GWO) is a financial services holding company with interests in the life insurance, health insurance, retirement savings, and reinsurance businesses. The Company has operations in Canada, the United States and Europe through The Great-West Life Assurance Company, London Life Insurance Company, The Canada Life Assurance Company and Great-West Life & Annuity Insurance Company. Lifeco and its companies have over $210 billion in assets under administration. Great-West Lifeco is a member of the Power Financial Corporation group of companies.

 

- 4 -

 

Caution regarding Forward-Looking Information and Non-GAAP Financial Measures

This release contains forward-looking statements about the Company, including its business operations, strategy and expected financial performance and condition. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “estimates” or negative versions thereof and similar expressions. In addition, any statement that may be made concerning future financial performance (including revenues, earnings or growth rates), ongoing business strategies or prospects, and possible future Company action, is also a forward-looking statement. Forward-looking statements are based on current expectations and projections about future events and are inherently subject to, among other things, risks,

uncertainties and assumptions about the Company, economic factors and the insurance industry generally. They are not guarantees of future performance, and actual events and results could differ materially from those expressed or implied by forward-looking statements made by the Company due to, but not limited to, important factors such as sales levels, premium income, fee income, expense levels, mortality experience, morbidity experience, policy lapse rates and taxes, as well as general economic, political and market factors in North America and internationally, interest and foreign exchange rates, global equity and capital markets, business competition, technological change, changes in government regulations, unexpected judicial or regulatory proceedings, catastrophic events, and the Company's ability to complete strategic transactions and integrate acquisitions. The reader is cautioned that the foregoing list of important factors is not exhaustive, and there may be other factors listed in other filings with securities regulators, including factors set out under “Risk Management and Control Practices” in the Company’s MD&A, which, along with other filings, is available for review at www.sedar.com. The reader is also cautioned to consider these and other factors carefully and to not place undue reliance on forward-looking statements. Other than as specifically required by applicable law, the Company has no specific intention to update any forward-looking statements whether as a result of new information, future events or otherwise.

 

This release contains non-GAAP financial measures. Terms by which non-GAAP financial measures are identified include but are not limited to "earnings or sales on a constant currency basis", "earnings adjusted for the negative impact of currency”, “adjusted net income”, “earnings before adjustments”, “net income before adjustments” and other similar expressions. Non-GAAP financial measures are used to provide management and investors with additional measures of performance. However, non-GAAP financial measures do not have standard meanings prescribed by GAAP and are not directly comparable to similar measures used by other companies. Please refer to the appropriate reconciliations of these non-GAAP financial measures to measures prescribed by GAAP.

 

- 5 -

 

Further information

Selected financial information is attached.

 

Great-West Lifeco's fourth quarter analyst teleconference will be held Thursday, February 15 at 3:00 p.m. (Eastern). The call can be accessed through www.greatwestlifeco.com or by phone, through listen-only lines at:

•

Participants in the Toronto area: 416-641-6130

•

Participants from North America: 1-866-862-3912

•

Participants from Overseas: Dial international access code first, then 800-9559-6849

 

A replay of the call will be available from February 15, until February 22, and can be accessed by calling 1-800-408-3053 or 416-695-5800 in Toronto (passcode: 3210438#).

 

Additional information relating to Lifeco, including the 2006 audited financial statements, Management's Discussion and Analysis (MD&A), Annual Information Form (AIF) and CEO/CFO certificates will be filed on SEDAR at www.sedar.com.

 

 

- end -

 

For more information contact:

 

Marlene Klassen

Director, Media & Public Relations

(204) 946-7705

 

 

 

 

 

 

 

 

 

 

 

 

FINANCIAL HIGHLIGHTS (Unaudited)

(in $ millions except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months

 

For the years

 

 

 

 

ended December 31

 

ended December 31

 

 

 

 

2006

2005

% Change

 

2006

2005

% Change

 

 

 

 

 

 

 

 

 

 

 

 

Premiums:

 

 

 

 

 

 

 

 

 

Life insurance, guaranteed annuities

$6,253

$4,528

38%

 

$18,724

$16,058

17%

 

and insured health products

 

 

 

 

 

 

 

 

Self-funded premium equivalents (ASO contracts)

1,849

1,850

-

 

7,386

7,535

-2%

 

Segregated funds deposits:

 

 

 

 

 

 

 

 

Individual products

 

2,415

1,861

30%

 

8,420

6,254

35%

 

Group products

 

1,399

1,268

10%

 

5,240

5,040

4%

 

Total premiums and deposits

11,916

9,507

25%

 

39,770

34,887

14%

 

 

 

 

 

 

 

 

 

 

 

 

Fee and other income

 

706

616

15%

 

2,688

2,424

11%

 

Paid or credited to policyholders

6,677

4,888

37%

 

20,508

17,435

18%

 

 

 

 

 

 

 

 

 

 

 

 

Net income - common shareholders before adjustments (1)

491

469

5%

 

1,875

1,802

4%

 

Adjustments after tax (1)

-

13

 

 

-

60

 

 

Net income - common shareholders

491

456

8%

 

1,875

1,742

8%

 

 

 

 

 

 

 

 

 

 

 

Per common share

 

 

 

 

 

 

 

 

 

Basic earnings before adjustments (1)

$0.550

$0.526

5%

 

$2.104

$2.022

4%

 

Adjustments after tax (1)

-

0.014

 

 

-

0.067

 

 

 

 

Basic earnings after adjustments

0.550

0.512

7%

 

2.104

1.955

8%

 

Dividends paid

 

0.240

0.210

14%

 

0.9275

0.810

15%

 

Book value

 

 

 

 

 

11.24

9.76

15%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on common shareholders' equity:

 

 

 

 

 

 

 

 

Net income before adjustments (1)

 

 

 

 

20.1%

20.9%

 

 

Net income

 

 

 

 

 

20.1%

20.7%

 

 

 

 

 

 

 

 

 

0.0%

 

 

At December 31

 

 

 

 

 

 

 

 

 

Total assets

 

 

 

 

 

$120,463

$102,161

18%

 

Segregated funds net assets

 

 

 

 

90,146

75,158

20%

 

Total assets under administration

 

 

 

 

$210,609

$177,319

19%

 

 

 

 

 

 

 

 

 

 

 

 

Share capital and surplus

 

 

 

 

$11,114

$9,489

17%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Net income, basic earnings per common share and return on common shareholders’ equity are presented before the following adjustments as a non-GAAP financial measure of earnings performance:

 

 

a)

Following the acquisition of Canada Life Financial Corporation (CLFC) by the Company, a plan was developed to restructure and exit selected operations of CLFC. Shareholder net income for the year ended December 31, 2005 includes restructuring costs related to the acquisition of $17 after tax, or $0.019 per common share.

 

 

b)

Fourth quarter 2005 results include a charge of $13 after tax, or $0.014 per common share, related to a provision for expected losses arising from hurricane damage in 2005. 2005 results include a charge of $43 after tax, or $0.048 per common share, related to a provision for expected losses arising from hurricane damage in 2005.

 

 

 

SUMMARY OF CONSOLIDATED OPERATIONS (Unaudited)

(in $ millions except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended

 

For the years ended

 

 

 

 

 

December 31

 

December 31

 

 

 

 

 

2006

 

2005

 

2006

 

2005

 

 

 

 

 

 

 

 

 

 

 

 

 

Income

 

 

 

 

 

 

 

 

 

 

 

Premium income

 

$ 6,253

 

$ 4,528

 

$18,724

 

$16,058

 

 

Net investment income

 

1,494

 

1,374

 

5,910

 

5,389

 

 

Fee and other income

 

706

 

616

 

2,688

 

2,424

 

 

 

 

 

8,453

 

6,518

 

27,322

 

23,871

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits and expenses

 

 

 

 

 

 

 

 

 

 

Paid or credited to policyholders and beneficiaries

 

 

 

 

 

 

 

 

 

including policyholder dividends and experience refunds

6,677

 

4,888

 

20,508

 

17,435

 

 

Commissions

 

 

402

 

330

 

1,401

 

1,284

 

 

Operating expenses

 

595

 

546

 

2,230

 

2,198

 

 

Premium taxes

 

 

66

 

55

 

259

 

238

 

 

Financing charges

 

50

 

41

 

202

 

187

 

 

Amortization of finite life intangible assets

4

 

4

 

18

 

18

 

 

Restructuring costs

 

-

 

-

 

-

 

22

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income before income taxes

 

659

 

654

 

2,704

 

2,489

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income taxes

- current

 

125

 

83

 

550

 

476

 

 

 

- future

 

(1)

 

77

 

65

 

125

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income before non-controlling interests

535

 

494

 

2,089

 

1,888

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-controlling interests

 

30

 

27

 

162

 

113

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income - shareholders

 

505

 

467

 

1,927

 

1,775

 

 

 

 

 

 

 

 

 

 

 

 

 

Perpetual preferred share dividends

 

14

 

11

 

52

 

33

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income - common shareholders

$ 491

 

$ 456

 

$ 1,875

 

1,742

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

$ 0.550

 

$ 0.512

 

$ 2.104

 

1.955

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted

 

 

$ 0.547

 

$ 0.509

 

$ 2.089

 

1.939

 

 

 

 

 

 

 

 

 

 

 

 

 

Average number of shares outstanding

 

 

 

 

 

 

 

 

 

Basic

 

 

 

 

 

 

891,050,178

 

890,947,683

 

 

Diluted

 

 

 

 

 

 

897,725,841

 

898,331,007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED BALANCE SHEETS (Unaudited)

 

(in $ millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

December 31,

 

 

 

 

 

 

2006

 

2005

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bonds

 

 

 

 

$65,246

 

$59,298

 

Mortgage loans

 

 

 

 

15,334

 

14,605

 

Stocks

 

 

 

 

4,766

 

4,028

 

Real estate

 

 

 

 

2,216

 

1,842

 

Loans to policyholders

 

 

 

 

6,776

 

6,646

 

Cash and cash equivalents

 

 

 

 

3,083

 

2,961

 

Funds held by ceding insurers

 

 

 

12,371

 

2,556

 

Goodwill

 

 

 

 

5,444

 

5,323

 

Intangible assets

 

 

 

 

1,575

 

1,457

 

Other assets

 

 

 

 

3,652

 

3,445

 

 

 

 

 

 

 

 

 

 

Total assets

 

 

 

 

$120,463

 

$102,161

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Policy liabilities

 

 

 

 

 

 

 

 

Actuarial liabilities

 

 

 

 

$89,363

 

$71,263

 

Provision for claims

 

 

 

 

1,266

 

999

 

 

 

Provision for policyholder dividends

 

 

 

568

 

535

 

Provision for experience rating refunds

 

 

 

452

 

401

 

Policyholder funds

 

 

 

 

2,202

 

2,088

 

 

 

 

 

 

93,851

 

75,286

 

 

 

 

 

 

 

 

 

 

Debentures and other debt instruments

 

 

 

1,980

 

1,903

 

Funds held under reinsurance contracts

 

 

 

1,822

 

4,221

 

Other liabilities

 

 

 

 

4,229

 

4,099

 

Repurchase agreements

 

 

 

 

997

 

1,023

 

Deferred net realized gains

 

 

 

 

2,821

 

2,598

 

 

 

 

 

 

105,700

 

89,130

 

 

 

 

 

 

 

 

 

 

Preferred shares

 

 

 

 

756

 

787

 

Capital trust securities and debentures

 

 

 

646

 

648

 

Non-controlling interests

 

 

 

 

 

 

 

 

Participating account surplus in subsidiaries

 

 

1,884

 

1,741

 

Preferred shares issued by subsidiaries

 

 

 

209

 

209

 

Perpetual preferred shares issued by subsidiaries

 

 

154

 

157

 

 

 

 

 

 

 

 

 

 

Share capital and surplus

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share capital

 

 

 

 

 

 

 

 

Perpetual preferred shares

 

 

 

1,099

 

799

 

Common shares

 

 

 

 

4,676

 

4,660

 

 

 

Accumulated surplus

 

 

 

 

5,858

 

4,860

 

Contributed surplus

 

 

 

 

28

 

19

 

Currency translation account

 

 

 

(547)

 

(849)

 

 

 

 

 

 

11,114

 

9,489

 

 

 

 

 

 

 

 

 

 

Liabilities, share capital and surplus

 

 

 

$120,463

 

$102,161

 

 

 

 

 

 

 

 

 

 

Segmented Information (Unaudited)

 

 

Consolidated Operations

 

 

 

LIFECO

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended December 31, 2005

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United

 

 

 

Lifeco

 

 

 

 

 

 

 

 

Canada

 

States

 

Europe

 

Corporate

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Premium income

 

 

$1,582

 

$440

 

$2,506

 

$-

 

$4,528

 

 

Net investment income

 

707

 

344

 

320

 

3

 

1,374

 

 

Fee and other income

 

 

198

 

294

 

124

 

-

 

616

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total income

 

 

2,487

 

1,078

 

2,950

 

3

 

6,518

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Paid or credited to policyholders

 

1,705

 

555

 

2,628

 

-

 

4,888

 

 

Other

 

 

 

489

 

291

 

191

 

1

 

972

 

 

Amortization of finite life intangible assets

4

 

-

 

-

 

-

 

4

 

 

Restructuring costs

 

 

-

 

-

 

-

 

-

 

-

 

 

Net operating income

 

 

 

 

 

 

 

 

 

 

 

 

 

before income taxes

 

 

289

 

232

 

131

 

2

 

654

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income taxes

 

 

79

 

75

 

6

 

-

 

160

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income before non-controlling

 

 

 

 

 

 

 

 

 

 

 

 

interests

 

 

 

210

 

157

 

125

 

2

 

494

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-controlling interests

 

28

 

(4)

 

3

 

-

 

27

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income - shareholders

 

182

 

161

 

122

 

2

 

467

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Perpetual preferred share dividends

 

11

 

-

 

-

 

-

 

11

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income - common shareholders

 

$171

 

$161

 

$122

 

$2

 

$456

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIFECO

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the year ended December 31, 2006

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United

 

 

 

Lifeco

 

 

 

 

 

 

 

 

Canada

 

States

 

Europe

 

Corporate

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Premium income

 

 

$8,149

 

$3,352

 

$7,223

 

$-

 

$18,724

 

 

Net investment income

 

2,789

 

1,393

 

1,710

 

18

 

5,910

 

 

Fee and other income

 

 

895

 

1,182

 

611

 

-

 

2,688

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total income

 

 

11,833

 

5,927

 

9,544

 

18

 

27,322

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Paid or credited to policyholders

 

8,231

 

3,995

 

8,282

 

-

 

20,508

 

 

Other

 

 

 

2,204

 

1,198

 

686

 

4

 

4,092

 

 

Amortization of finite life intangible assets

14

 

-

 

4

 

-

 

18

 

 

Restructuring costs

 

 

-

 

-

 

-

 

-

 

-

 

 

Net operating income

 

 

 

 

 

 

 

 

 

 

 

 

 

before income taxes

 

 

1,384

 

734

 

572

 

14

 

2,704

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income taxes

 

 

317

 

210

 

59

 

29

 

615

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income before non-controlling

 

 

 

 

 

 

 

 

 

 

 

 

interests

 

 

 

1,067

 

524

 

513

 

(15)

 

2,089

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-controlling interests

 

132

 

13

 

17

 

-

 

162

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income - shareholders

 

935

 

511

 

496

 

(15)

 

1,927

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Perpetual preferred share dividends

 

42

 

-

 

10

 

-

 

52

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income - common shareholders

 

$893

 

$511

 

$486

 

$(15)

 

$1,875

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the year ended December 31, 2005

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United

 

 

 

Lifeco

 

 

 

 

 

 

 

 

Canada

 

States

 

Europe

 

Corporate

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Premium income

 

 

$6,135

 

$2,769

 

$7,154

 

$-

 

$16,058

 

 

Net investment income

 

2,779

 

1,467

 

1,149

 

(6)

 

5,389

 

 

Fee and other income

 

 

774

 

1,169

 

481

 

-

 

2,424

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total income

 

 

9,688

 

5,405

 

8,784

 

(6)

 

23,871

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Paid or credited to policyholders

 

6,430

 

3,362

 

7,643

 

-

 

17,435

 

 

Other

 

 

 

2,053

 

1,191

 

659

 

4

 

3,907

 

 

Amortization of finite life intangible assets

14

 

-

 

4

 

-

 

18

 

 

Restructuring costs

 

 

-

 

-

 

-

 

22

 

22

 

 

Net operating income

 

 

 

 

 

 

 

 

 

 

 

 

 

before income taxes

 

 

1,191

 

852

 

478

 

(32)

 

2,489

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income taxes

 

 

284

 

245

 

68

 

4

 

601

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income before non-controlling

 

 

 

 

 

 

 

 

 

 

 

 

interests

 

 

 

907

 

607

 

410

 

(36)

 

1,888

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-controlling interests

 

101

 

1

 

11

 

-

 

113

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income - shareholders

 

806

 

606

 

399

 

(36)

 

1,775

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Perpetual preferred share dividends

 

33

 

-

 

-

 

-

 

33

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income - common shareholders

 

$773

 

$606

 

$399

 

$(36)

 

$1,742