Great-West beats expectations as Q3 profit increases six per cent to $730 million

WINNIPEG — Great-West Lifeco Inc. beat expectations as its net income increased nearly six per cent to $730 million in its third quarter.

The Winnipeg-based company says it earnings attributable to common shareholders were 79 cents per share, up from 70 cents per share or $689 million in the prior year.

Great-West had no adjustments to its earnings in the quarter, but they were $745 million or 75 cents per share in the third quarter of 2018, which exclude $56 million in restructuring costs related to its U.K. operations.

Analysts expected net income of $708.75 million and earnings per share of $0.76, according to the financial markets data firm Refinitiv.

Sales grew by 22 per cent to $41.9 billion, driven by a 29 per cent increase in the U.S. and 22 per cent growth in Canada.

In July, the company’s board approved a plan to combine its Great-West Life, London Life and Canada Life divisions and their holding companies into a single company to be known as The Canada Life Assurance Company.

In October, more than 90 per cent of policyholders cast votes in favour of the amalgamation, which is expected to be effective on Jan. 1.

This report by The Canadian Press was first published Oct. 30, 2019.

Companies in this story: (TSX:GWO)

The Canadian Press