Segment Information

3 Months Ended

Mar. 31, 2016

Segment Reporting [Abstract]

Segment Information

Segment Information

The Chief Operating Decision Maker (“CODM”) of the Company is also the Chief Executive Officer (“CEO”) of the Company and Lifeco U.S. The CODM reviews the financial information for the purposes of assessing performance and allocating resources based upon the results of Lifeco U.S. and other U.S. affiliates prepared in accordance with International Financial Reporting Standards. The CODM, in his capacity as CEO of the Company, reviews the Company’s financial information only

in connection with the quarterly and annual reports that are filed with the Securities and Exchange Commission (“SEC”).

Consequently, the Company does not provide its discrete financial information to the CODM to be regularly reviewed to make

decisions about resources to be allocated or to assess performance. For purposes of SEC reporting requirements, the Company

has chosen to present its financial information in three segments, notwithstanding the above. The three segments are: Individual Markets, Empower Retirement (formerly known as “Retirement Services”), and Other. 

Individual Markets

The Individual Markets reporting and operating segment distributes life insurance, annuity, and retirement products to both individuals and businesses through various distribution channels.  Life insurance products in-force include participating and non-participating term life, whole life, universal life, and variable universal life.

Empower Retirement

The Empower Retirement reporting and operating segment provides various retirement plan products (including individual retirement accounts (“IRAs”)) and investment options as well as comprehensive administrative and record-keeping services for financial institutions and employers, which include educational, advisory, enrollment, and communication services for employer-sponsored defined contribution plans and associated defined benefit plans.

Other

The Company’s Other reporting segment is substantially comprised of activity under the assumption of reinsurance between Great-West Life & Annuity Insurance Company of South Carolina (“GWSC”), a wholly owned subsidiary, and The Canada Life Assurance Company (“CLAC”), corporate items not directly allocated to the other operating segments, and interest expense on long-term debt.

The accounting principles used to determine segment results are the same as those used in the consolidated financial statements.  Inter-segment transactions and balances have been eliminated in consolidation.  The Company’s operations are not materially dependent on one or a few customers, brokers, or agents.

The following tables summarize segment financial information:

	Three Months Ended March 31, 2016
	Individual		Empower
	Markets		Retirement		Other			Total
Revenue:
Premium income	$	133,286	$	346	$	21,295		$	154,927
Fee income	22,724		200,923		1,420			225,067
Other revenue	—		3,149		—			3,149
Net investment income	207,693		110,534		13,558			331,785
Realized investment gains (losses), net	11,806		19,471		(7		)	31,270
Total revenues	375,509		334,423		36,266			746,198
Benefits and expenses:
Policyholder benefits	267,497		49,917		19,329			336,743
Operating expenses	37,223		231,640		17,928			286,791
Total benefits and expenses	304,720		281,557		37,257			623,534
Income (loss) before income taxes	70,789		52,866		(991		)	122,664
Income tax expense (benefit)	23,834		651		(447		)	24,038
Net income (loss)	$	46,955	$	52,215	$	(544	)	$	98,626

	Three Months Ended March 31, 2015
	Individual		Empower
	Markets		Retirement		Other			Total
Revenue:
Premium income	$	124,962	$	—	$	20,741		$	145,703
Fee income	21,502		202,821		954			225,277
Other revenue	—		1,820		—			1,820
Net investment income	217,653		127,730		13,473			358,856
Realized investment gains (losses), net	8,400		9,800		—			18,200
Total revenues	372,517		342,171		35,168			749,856
Benefits and expenses:
Policyholder benefits	256,323		49,045		22,303			327,671
Operating expenses	35,941		221,030		14,706			271,677
Total benefits and expenses	292,264		270,075		37,009			599,348
Income (loss) before income taxes	80,253		72,096		(1,841		)	150,508
Income tax expense (benefit)	28,222		24,380		(706		)	51,896
Net income (loss)	$	52,031	$	47,716	$	(1,135	)	$	98,612