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, and Other.

Individual Markets

The Individual Markets reporting and operating segment distributes life insurance and individual annuity 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 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”) (“the GWSC operating segment”), 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. The Company evaluates performance of its reportable segments based on their profitability from operations after income taxes. 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 June 30, 2017
	Individual		Empower
	Markets		Retirement		Other			Total
Revenue:
Premium income	$	44,701	$	1,052	$	21,910		$	67,663
Fee income	29,199		236,573		1,566			267,338
Other revenue	—		3,661		—			3,661
Net investment income	192,788		92,756		11,677			297,221
Realized investment gains (losses), net	4,037		18,011		16			22,064
Total revenues	270,725		352,053		35,169			657,947
Benefits and expenses:
Policyholder benefits	198,171		50,702		20,671			269,544
Operating expenses	47,420		249,178		15,813			312,411
Total benefits and expenses	245,591		299,880		36,484			581,955
Income (loss) before income taxes	25,134		52,173		(1,315		)	75,992
Income tax expense (benefit)	8,531		17,996		(359		)	26,168
Net income (loss)	$	16,603	$	34,177	$	(956	)	$	49,824



	Three Months Ended June 30, 2016
	Individual		Empower
	Markets		Retirement		Other		Total
Revenue:
Premium income	$	51,053	$	362	$	25,403	$	76,818
Fee income	25,546		211,414		1,404		238,364
Other revenue	—		3,370		—		3,370
Net investment income	226,193		117,055		12,507		355,755
Realized investment gains (losses), net	14,771		27,242		—		42,013
Total revenues	317,563		359,443		39,314		716,320
Benefits and expenses:
Policyholder benefits	201,472		51,939		9,860		263,271
Operating expenses	54,010		266,857		18,673		339,540
Total benefits and expenses	255,482		318,796		28,533		602,811
Income (loss) before income taxes	62,081		40,647		10,781		113,509
Income tax expense (benefit)	21,247		14,486		3,977		39,710
Net income (loss)	$	40,834	$	26,161	$	6,804	$	73,799



	Six Months Ended June 30, 2017
	Individual		Empower
	Markets		Retirement		Other			Total
Revenue:
Premium income	$	176,260	$	1,143	$	42,501		$	219,904
Fee income	55,180		463,892		3,381			522,453
Other revenue	—		6,045		—			6,045
Net investment income	376,993		210,375		23,323			610,691
Realized investment gains (losses), net	4,622		5,695		(7		)	10,310
Total revenues	613,055		687,150		69,198			1,369,403
Benefits and expenses:
Policyholder benefits	468,259		98,330		42,382			608,971
Operating expenses	85,807		504,941		41,746			632,494
Total benefits and expenses	554,066		603,271		84,128			1,241,465
Income (loss) before income taxes	58,989		83,879		(14,930		)	127,938
Income tax expense (benefit)	20,182		28,421		(5,317		)	43,286
Net income (loss)	$	38,807	$	55,458	$	(9,613	)	$	84,652



	Six Months Ended June 30, 2016
	Individual		Empower
	Markets		Retirement		Other			Total
Revenue:
Premium income	$	184,339	$	707	$	46,699		$	231,745
Fee income	48,269		412,336		2,824			463,429
Other revenue	—		6,519		—			6,519
Net investment income	433,886		227,589		26,065			687,540
Realized investment gains (losses), net	26,577		46,713		(7		)	73,283
Total revenues	693,071		693,864		75,581			1,462,516
Benefits and expenses:
Policyholder benefits	468,969		101,856		29,190			600,015
Operating expenses	91,231		498,500		36,601			626,332
Total benefits and expenses	560,200		600,356		65,791			1,226,347
Income (loss) before income taxes	132,871		93,508		9,790			236,169
Income tax expense (benefit)	45,081		15,137		3,530			63,748
Net income (loss)	$	87,790	$	78,371	$	6,260		$	172,421