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 September 30, 2017
	Individual		Empower
	Markets		Retirement		Other			Total
Revenue:
Premium income	$	125,757	$	764	$	18,983		$	145,504
Fee income	27,780		234,957		1,567			264,304
Other revenue	—		3,322		—			3,322
Net investment income	185,447		103,334		11,801			300,582
Realized investment gains (losses), net	2,389		11,472		—			13,861
Total revenues	341,373		353,849		32,351			727,573
Benefits and expenses:
Policyholder benefits	272,396		53,736		18,109			344,241
Operating expenses	41,332		255,623		18,108			315,063
Total benefits and expenses	313,728		309,359		36,217			659,304
Income (loss) before income taxes	27,645		44,490		(3,866		)	68,269
Income tax expense (benefit)	9,398		13,641		(1,351		)	21,688
Net income (loss)	$	18,247	$	30,849	$	(2,515	)	$	46,581



	Three Months Ended September 30, 2016
	Individual		Empower
	Markets		Retirement		Other			Total
Revenue:
Premium income	$	126,770	$	605	$	18,725		$	146,100
Fee income	23,553		221,342		1,518			246,413
Other revenue	—		3,228		—			3,228
Net investment income	185,747		94,383		11,409			291,539
Realized investment gains (losses), net	11,026		21,565		783			33,374
Total revenues	347,096		341,123		32,435			720,654
Benefits and expenses:
Policyholder benefits	280,821		51,730		14,310			346,861
Operating expenses	35,948		263,327		19,206			318,481
Total benefits and expenses	316,769		315,057		33,516			665,342
Income (loss) before income taxes	30,327		26,066		(1,081		)	55,312
Income tax expense (benefit)	10,102		5,442		(249		)	15,295
Net income (loss)	$	20,225	$	20,624	$	(832	)	$	40,017



	Nine Months Ended September 30, 2017
	Individual		Empower
	Markets		Retirement		Other			Total
Revenue:
Premium income	$	302,017	$	1,908	$	61,483		$	365,408
Fee income	82,960		698,850		4,948			786,758
Other revenue	—		9,367		—			9,367
Net investment income	562,440		313,710		35,124			911,274
Realized investment gains (losses), net	7,010		17,168		(7		)	24,171
Total revenues	954,427		1,041,003		101,548			2,096,978
Benefits and expenses:
Policyholder benefits	740,655		152,067		60,491			953,213
Operating expenses	127,137		760,564		59,854			947,555
Total benefits and expenses	867,792		912,631		120,345			1,900,768
Income (loss) before income taxes	86,635		128,372		(18,797		)	196,210
Income tax expense (benefit)	29,579		42,063		(6,669		)	64,973
Net income (loss)	$	57,056	$	86,309	$	(12,128	)	$	131,237



	Nine Months Ended September 30, 2016
	Individual		Empower
	Markets		Retirement		Other		Total
Revenue:
Premium income	$	311,110	$	1,311	$	65,424	$	377,845
Fee income	71,823		633,679		4,342		709,844
Other revenue	—		9,747		—		9,747
Net investment income	619,633		321,972		37,475		979,080
Realized investment gains (losses), net	37,602		68,278		777		106,657
Total revenues	1,040,168		1,034,987		108,018		2,183,173
Benefits and expenses:
Policyholder benefits	749,790		153,587		43,499		946,876
Operating expenses	127,181		761,827		55,807		944,815
Total benefits and expenses	876,971		915,414		99,306		1,891,691
Income before income taxes	163,197		119,573		8,712		291,482
Income tax expense	55,183		20,579		3,281		79,043
Net income	$	108,014	$	98,994	$	5,431	$	212,439