While Great-West Lifeco Inc. is reporting a decline in earnings for the second quarter of 2017, the company saw improvements on an adjusted basis as it achieved solid sales results in Canada.
On Thursday, the company reported net earnings attributable to common shareholders of $585 million for the period ending on June 30, 2017. While that was down from $671 million during the same period last year, the results were up on an adjusted basis. Excluding restructuring costs of $127 million primarily related to its Canadian operations, adjusted earnings came in at $712 million, which was up by six per cent, from $671 million, during the same quarter last year.
As for the results of its Canadian operations, Great-West Life reported sales rose by 21 per cent over the same period last year to $3.2 billion. It cited strength in sales of individual and group investment funds, single premium group annuities and group insurance for the increase.
Read: Great-West Life to eliminate 1,500 jobs in Canada
Adjusted net earnings for the Canadian operations, however, were down slightly to $311 million during the second quarter of 2017 from $327 million during the same period last year. As for its restructuring efforts in Canada, the company says it had achieved $46 million in pretax annualized reductions as of June 30 out of its previously announced target of $200 million in savings.
“We were very pleased with the second-quarter results, which reflected strong operating performances across businesses and geographies,” said Paul Mahon, president and chief executive officer.
“Restructuring initiatives undertaken earlier in the year are delivering expected cost savings. We are managing expenses carefully while continuing to invest in core markets and new capabilities to improve customer experiences and drive future growth.”
The earnings results follow Great-West Life’s announcement this week of the completion of its acquisition of managing general agency Financial Horizons Inc.