Great-West Lifeco Inc. announced on Feb. 8 net earnings of $392 million for the fourth quarter of 2017 compared to $676 million for the same quarter of 2016.
The company’s Q4 net earnings included a net charge of $216 million from the impact of U.S. tax reform, a net charge on the disposal of an equity investment of $122 million and restructuring costs of $4 million.
Excluding these items, adjusted net earnings were $734 million compared to adjusted net earnings of $698 million for the fourth quarter of 2016, for an increase of five per cent, reported Lifeco.
2017 results hit by hurricane claims
The company’s net earnings for 2017 were $2.1 billion. Excluding the impact of U.S. tax reform, the disposal of an equity investment and restructuring costs, which together totaled $498 million year-to-date, Lifeco's adjusted net earnings were $2.6 billion compared to $2.7 billion for the same period last year. The 2017 year-to-date adjusted net earnings included a loss of $175 million related to estimated hurricane claims reflected in the third quarter 2017 results, stated the company.
Lifeco’s Q4 2017 sales stood at $30.3 billion for an increase of 13 per cent over Q4 2016."The company's operating performance was solid in the fourth quarter reflecting strong top-line results and controlled expense growth," said Paul Mahon, President and CEO, Great-West Lifeco. "Strategic actions taken in the quarter and throughout the year, including transformation initiatives in Canada and tuck-in acquisitions and investments across our geographies, set the stage for stronger future earnings growth."
Lifeco also announced a quarterly common dividend of $0.3890 per common share payable March 29, 2018. This is a six per cent increase from the previous quarter.