Wednesday, August 1, 2012

GWO - <span class="din">Great-West Lifeco reports second quarter 2012 results</span> (CAD 0.3075)

Company: Great-West Lifeco Inc
Stock Name: GWO
Amount: CAD 0.3075
Announcement Date: 01/08/2012
Record Date: 29/08/2012

Dividend Detail:




Readers are referred to the cautionary notes regarding Forward-Looking
Information and Non-IFRS Financial Measures at the end of this
release.�� All figures are expressed in Canadian dollars, except as
noted.



TSX:GWO



WINNIPEG, Aug. 1, 2012 /CNW/ - Great-West Lifeco Inc. (Lifeco) has
reported net earnings attributable to common shareholders of $491
million for the three months ended June 30, 2012, compared to $526
million in the second quarter of 2011.�� On a per common share basis,
this represents $0.517 per common share for the three months ended June
30, 2012, compared to $0.553 per common share for the same period in
2011.



For the six months ended June 30, 2012, net earnings attributable to
common shareholders were $942 million, compared to $941 million a year
ago.�� This represents $0.992 per common share for the six months ended
June 30, 2012, compared to $0.991 per common share for the same period
in 2011.



During the second quarter, the Company concluded on certain income tax
matters which positively impacted net earnings by $47 million. The
second quarter 2011 comparative results included a release of a legal
provision of $55 million. The six months 2011 results also included
catastrophe provisions of $75 million relating to earthquake events in
Japan and New Zealand.



Consolidated assets under administration at June 30, 2012 were $524
billion, up $22 billion from December 31, 2011.



Highlights




  • Sales in Canada for Individual participating life insurance were up 22%
    and Group sales were up 58% compared to the second quarter of 2011.


  • Sales in U.S. Financial Services were US$2.0 billion compared to US$1.5
    billion in the second quarter of 2011 reflecting continued strong sales
    in both Individual Markets and Retirement Services.


  • Sales in UK Payout Annuity products increased by $103 million or 47%
    compared to the same period of 2011 resulting from the Company's
    improved competitive position.


  • The Company raised $200 million of 5.15% fixed rate perpetual preferred
    share capital on July 6, 2012.


  • The Company's ROE continues to lead the industry at 16.8% based on net
    earnings and 15.8% based on operating earnings.


  • The Company's capital position remained very strong.�� The Great-West
    Life Assurance Company reported a Minimum Continuing Capital and
    Surplus Requirements (MCCSR) ratio of 205% at June 30, 2012.


  • Credit experience remained favourable. There were no new impaired
    securities in the quarter.


  • The Company declared a quarterly common dividend of $0.3075 per common
    share payable September 28, 2012.



OPERATING RESULTS



Consolidated net earnings for Lifeco comprise the net earnings of The
Great-West Life Assurance Company (Great-West Life), Canada Life
Financial Corporation (CLFC), London Life Insurance Company (London
Life), Great-West Life & Annuity Insurance Company (GWL&A), and Putnam
Investments, LLC (Putnam), together with Lifeco's corporate results.



CANADA



Net earnings attributable to common shareholders for the second quarter
of 2012 were $254 million compared to $262 million in the second
quarter of 2011.�� Net earnings for the second quarter of 2012 include
the impact of strengthening of reinvestment risk margins of $49 million
and a conclusion on certain income tax matters which positively
impacted net earnings by $22 million. For the six months ended June 30,
2012 net earnings attributable to common shareholders were $496 million
compared to $507 million for the same period in 2011.



Total sales in the second quarter of 2012 were $2.1 billion compared to
$2.2 billion in 2011.�� Individual Insurance product sales increased 8%,
Group sales increased 58% driven by large case sales in both the
Creditor and Life and Health segments, Wealth Management group
retirement sales were up 12% and sales of proprietary retail
investments funds were down 7% compared to the second quarter of 2011.��
Total sales for the six months ended June 30, 2012 were $4.6 billion
compared to $4.8 billion in 2011.



Total assets under administration at June 30, 2012 were $133 billion,
compared to $129 billion at December 31, 2011.



UNITED STATES



Net earnings attributable to common shareholders for the second quarter
of 2012 were $86 million compared to $128 million in the second quarter
of 2011.�� The 2011 comparative results included a release of a legal
provision of $55 million from a settlement of a lawsuit in Putnam.�� For
the six months ended June 30, 2012 net earnings attributable to common
shareholders were $161 million compared to $216 million for the same
period in 2011.



Financial Services sales in the second quarter of 2012 were US$2.0
billion compared to US$1.5 billion in 2011 reflecting increases in both
Retirement Services and Individual Markets.�� Sales for the six months
ended June 30, 2012 were US$4.4 billion compared to US$3.7 billion in
2011.



Putnam average assets under management for the three months ended June
30, 2012 were US$121 billion compared to US$128 billion a year ago. The
decrease was primarily due to net asset outflows during the previous
four quarters and the impact of negative market performance during that
period.�� Net asset outflows in second quarter 2012 were US$271 million,
an improvement of US$1.7 billion over the previous quarter.



Putnam average assets under management for the six months ended June 30,
2012 were US$121 billion down from US$126 billion a year ago.�� Net
asset outflows for the six months ended 2012 were US$2.2 billion
compared to net inflows of US$3.5 billion a year ago.



Total United States segment assets under administration at June 30, 2012
were $320 billion compared to $303 billion at December 31, 2011.



EUROPE



Net earnings attributable to common shareholders for the second quarter
of 2012 were $160 million compared to $147 million in the second
quarter of 2011.�� Net earnings for the second quarter of 2012 include
the impact of strengthening of reinvestment risk margins of $39 million
and a conclusion on certain income tax matters which positively
impacted net earnings by $25 million. For the six months ended June 30,
2012 net earnings attributable to common shareholders were $301 million
compared to $233 million for the same period in 2011. The 2011 results
included catastrophe provisions of $75 million relating to earthquake
events in Japan and New Zealand.



Sales for the second quarter of 2012 were $828 million compared to $876
million in 2011. Sales in single premium savings products in the Isle
of Man decreased by $138 million compared to 2011, reflecting the
generally difficult market environment and normal fluctuations in the
number of large cases.�� Sales of U.K. payout annuities grew by $103
million compared to 2011, resulting from the Company's improved
competitive position. Sales of guaranteed variable annuity products in
Ireland, which were launched in the fourth quarter of 2011, grew by 40%
from the previous quarter.



Total sales for the six months ended June 30, 2012 were $1.6 billion
compared to $2.0 billion in 2011 due mainly to the decline in single
premium savings products in both the U.K. and Isle of Man reflecting
the general market slowdown and normal fluctuations in the number of
large cases in the Isle of Man.



Total assets under administration at June 30, 2012 increased to $71
billion from $70 billion at December 31, 2011.



CORPORATE



Net earnings in the Lifeco corporate segment attributable to common
shareholders was a net loss of $9 million in the second quarter of 2012
compared to a net loss of $11 million for the second quarter of 2011.����
For the six months ended June 30, 2012 net earnings attributable to
common shareholders was a net loss of $16 million compared to a net
loss of $15 million for the same period in 2011.



QUARTERLY DIVIDENDS



At its meeting today, the Board of Directors approved a quarterly
dividend of $0.3075 per share on the common shares of the Company
payable September 28, 2012 to shareholders of record at the close of
business August 31, 2012.



For purposes of the Income Tax Act (Canada), and any similar provincial
legislation, the dividends referred to above are eligible dividends.



In addition, the Directors approved quarterly dividends on:




  • Series F First Preferred Shares of $0.36875 per share;


  • Series G First Preferred Shares of $0.3250 per share;


  • Series H First Preferred Shares of $0.30313 per share;


  • Series I First Preferred Shares of $0.28125 per share;


  • Series J First Preferred Shares of $0.3750 per share;


  • Series L First Preferred Shares of $0.353125 per share;


  • Series M First Preferred Shares of $0.36250 per share;


  • Series N First Preferred Shares of $0.228125 per share;


  • Series P First Preferred Shares of $0.3375 per share; and


  • Series Q First Preferred Shares of $0.30336 per share



all payable September 28, 2012 to shareholders of record at the close of
business August 31, 2012.



GREAT-WEST LIFECO



Great-West Lifeco Inc. (TSX:GWO) is an international financial services
holding company with interests in life insurance, health insurance,
retirement and investment services, asset management and reinsurance
businesses.�� Great-West Lifeco has operations in Canada, the United
States, Europe and Asia through The Great-West Life Assurance Company,
London Life Insurance Company, The Canada Life Assurance Company,
Great-West Life & Annuity Insurance Company and Putnam Investments,
LLC.�� Great-West Lifeco and its companies have $524 billion in assets
under administration and are members of the Power Financial Corporation
group of companies.



Cautionary note regarding Forward-Looking Information

This release contains some forward-looking statements about the Company,
including its business operations, strategy and expected financial
performance and condition.�� Forward-looking statements include
statements that are predictive in nature, depend upon or refer to
future events or conditions, or include words such as "expects",
"anticipates", "intends", "plans", "believes", "estimates" and similar
expressions or negative versions thereof.�� In addition, any statement
that may be made concerning future financial performance (including
revenues, earnings or growth rates), ongoing business strategies or
prospects, and possible future actions by the Company including
statements made with respect to the expected benefits of acquisitions
and divestitures are also forward-looking statements.�� Forward-looking
statements are based on expectations and projections about future
events that were current at the time of the statements and are
inherently subject to, among other things, risks, uncertainties and
assumptions about the Company, economic factors and the financial
services industry generally, including the insurance and mutual fund
industries.�� They are not guarantees of future performance, and actual
events and results could differ materially from those expressed or
implied by forward-looking statements due to, but not limited to,
important factors such as sales levels, premium income, fee income,
expense levels, mortality experience, morbidity experience, policy
lapse rates and taxes, as well as general economic, political and
market factors in North America and internationally, interest and
foreign exchange rates, global equity and capital markets, business
competition, technological change, changes in government regulations,
changes in accounting policies and the effect of applying future
accounting policy changes, unexpected judicial or regulatory
proceedings, catastrophic events, and the Company's ability to complete
strategic transactions and integrate acquisitions.�� The reader is
cautioned that the foregoing list of important factors is not
exhaustive, and there may be other factors, including factors set out
under "Risk Management and Control Practices" in the Company's Annual
Management's Discussion and Analysis and any listed in other filings
with securities regulators, which are available for review at www.sedar.com.�� The reader is also cautioned to consider these and other factors
carefully and to not place undue reliance on forward-looking
statements.�� Other than as specifically required by applicable law, the
Company has no intention to update any forward-looking statements
whether as a result of new information, future events or otherwise.



Cautionary note regarding Non-IFRS Financial Measures

This release contains some non-IFRS financial measures.�� Terms by which
non-IFRS financial measures are identified include but are not limited
to "operating earnings", "constant currency basis", "premiums and
deposits", "sales", and other similar expressions.�� Non-IFRS financial
measures are used to provide management and investors with additional
measures of performance.�� However, non-IFRS financial measures do not
have standard meanings prescribed by IFRS and are not directly
comparable to similar measures used by other companies.�� Please refer
to the appropriate reconciliations of these non-IFRS financial measures
to measures prescribed by IFRS.



Further information

Selected financial information is attached.



Great-West Lifeco's second quarter conference call and audio webcast
will be held Thursday, August 2, 2012 at 9:00 a.m. (ET).�� The call and
webcast can be accessed through www.greatwestlifeco.com or by phone at:




  • Participants in the Toronto area:�� 416-340-8018


  • Participants from North America: 1-866-223-7781


  • Participants from Overseas:�� Dial international access code first, then
    800-6578-9898



A replay of the call will be available from August 2 to 9, 2012, and can
be accessed by calling 1-800-408-3053 or 905-694-9451 in Toronto
(passcode: 1367585#). The archived webcast will be available on www.greatwestlifeco.com from approximately 2:00 p.m. (ET) on August 2, 2012 until August 2,
2013.



Additional information relating to Lifeco, including the most recent
interim unaudited consolidated financial statements, interim
Management's Discussion and Analysis (MD&A), and CEO/CFO certificates
will be filed on SEDAR at www.sedar.com.













FINANCIAL HIGHLIGHTS (unaudited)

(in Canadian $ millions except per share amounts)

























































































































































































































































































































































































































































































































































��

��

��

As at or for the three months ended

��

For the six months ended

��

��

��

��

June 30

��

��

March 31

��

��

June 30

��

��

June 30

��

��

June 30

��

��

��

��

2012

��

��

2012

��

��

2011

��

��

2012

��

��

2011

Premiums and deposits:

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

Life insurance, guaranteed annuities

������������and insured health products

��

��

$

4,524

��

$

4,529

��

$

4,272

��

$

9,053

��

$

8,567

Self-funded premium equivalents

��(ASO contracts)

��

��

��

������������673

��

��

������������685

��

��

������������664

��

��

������������1,358

��

��

������������1,334

Segregated funds deposits:

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

������������Individual products

��

��

��

������������1,436

��

��

������������1,559

��

��

������������1,636

��

��

������������2,995

��

��

������������3,541

������������Group products

��

��

��

������������1,595

��

��

������������1,770

��

��

������������1,427

��

��

������������3,365

��

��

������������2,920

Proprietary mutual funds and institutional deposits

��

��

��

������������4,898

��

��

������������5,939

��

��

������������8,289

��

��

������������10,837

��

��

������������17,372

Total premiums and deposits

��

��

��

������������13,126

��

��

������������14,482

��

��

������������16,288

��

��

������������27,608

��

��

������������33,734

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

Fee and other income

��

��

��

������������734

��

��

������������724

��

��

������������739

��

��

������������1,458

��

��

������������1,459

Paid or credited to policyholders

��

��

��

������������5,979

��

��

������������4,743

��

��

������������5,298

��

��

������������10,722

��

��

������������9,877

Net earnings - common shareholders

��

��

��

������������491

��

��

������������451

��

��

������������526

��

��

������������942

��

��

������������941

Per common share

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��������Basic earnings

��

��

$

0.517

��

$

0.475

��

$

0.553

��

$

0.992

��

$

0.991

��������Dividends paid

��

��

��

������������0.3075

��

��

������������0.3075

��

��

������������0.3075

��

��

������������0.615

��

��

������������0.615

��������Book value

��

��

��

������������12.97

��

��

������������12.69

��

��

������������11.72

��

��

��

��

��

��

Return on common shareholders' equity (trailing four quarters*):

��

��

��

��

��

��

��

��

��

��������Operating earnings

��

��

��

������������15.8%

��

��

������������16.5%

��

��

17.1%

��

��

��

��

��

��

��������Net earnings

��

��

��

������������16.8%

��

��

������������17.5%

��

��

15.2%

��

��

��

��

��

��

��������Total assets

��

��

$

245,297

��

$

243,702

��

$

232,137

��

��

��

��

��

��

��������Proprietary mutual funds and

����������institutional net assets

��

��

��

������������129,028

��

��

������������131,140

��

��

������������130,066

��

��

��

��

��

��

��������Total assets under management

��

��

��

������������374,325

��

��

������������374,842

��

��

������������362,203

��

��

��

��

��

��

��������Other assets under administration

��

��

��

������������149,258

��

��

������������148,068

��

��

������������134,822

��

��

��

��

��

��

��������Total assets under administration

��

��

$

523,583

��

$

522,910

��

$

497,025

��

��

��

��

��

��

Total equity��

��

��

$

16,692

��

$

16,406

��

$

15,079

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��


The Company uses operating earnings, a non-IFRS financial measure, which
excludes the impact of certain litigation provisions described in note
30 to the Company's December 31, 2011 consolidated financial
statements.



*Return on common shareholders' equity is the trailing four quarter
calculation of net earnings divided by common shareholders' equity.






CONSOLIDATED STATEMENTS OF EARNINGS (unaudited)

(in Canadian $ millions except per share amounts)

































































































































































































































































































































































































































































































































































































































































































































































































































































��

��

��

��

For the three months ended

��

For the six months ended

��

��

��

��

��

June 30

��

��

March 31

��

��

June 30

��

��

June 30

��

��

June 30

��

��

��

��

��

2012

��

��

2012

��

��

2011

��

��

2012

��

��

2011

Income

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��������Premium income

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

������������Gross premiums written

��

��

��

$

5,233

��

$

5,198

��

$

4,980

��

$

10,431

��

$

9,921

������������Ceded premiums

��

��

��

��

������������(709)

��

��

������������(669)

��

��

������������(708)

��

��

������������(1,378)

��

��

������������(1,354)

��������Total net premiums

��

��

��

��

������������4,524

��

��

������������4,529

��

��

������������4,272

��

��

������������9,053

��

��

������������8,567

��������Net investment income

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

������������Regular net investment income

��

��

��

��

������������1,428

��

��

������������1,439

��

��

������������1,416

��

��

������������2,867

��

��

������������2,843

������������Changes in fair value through profit or loss

��

��

��

��

������������1,106

��

��

������������(196)

��

��

������������707

��

��

������������910

��

��

������������520

��������Total net investment income

��

��

��

��

������������2,534

��

��

������������1,243

��

��

������������2,123

��

��

������������3,777

��

��

������������3,363

��������Fee and other income

��

��

��

��

������������734

��

��

������������724

��

��

������������739

��

��

������������1,458

��

��

������������1,459

��

��

��

��

��

������������7,792

��

��

������������6,496

��

��

������������7,134

��

��

������������14,288

��

��

������������13,389

Benefits and expenses

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��������Policyholder benefits

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

������������Insurance and investment contracts

��

��

��

��

��������������

��

��

������������������������ ��

��

��

��

��

��

��

��

��

��

����������������Gross

��

��

��

��

������������4,311

��

��

������������4,606

��

��

������������4,006

��

��

������������8,917

��

��

������������8,429

����������������Ceded

��

��

��

��

������������(367)

��

��

������������(387)

��

��

������������(316)

��

��

������������(754)

��

��

������������(649)

����������

��

��

��

��

������������3,944

��

��

������������4,219

��

��

������������3,690

��

��

������������8,163

��

��

������������7,780

��������Policyholder dividends and experience

����������refunds

��

��

��

��

������������367

��

��

������������364

��

��

������������377

��

��

������������731

��

��

������������730

��������Change in insurance and investment

����������contract liabilities

��

��

��

��

������������1,668

��

��

������������160

��

��

������������1,231

��

��

������������1,828

��

��

������������1,367

��������Total paid or credited to policyholders

��

��

��

��

������������5,979

��

��

������������4,743

��

��

������������5,298

��

��

������������10,722

��

��

������������9,877

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��������Commissions

��

��

��

��

������������415

��

��

������������410

��

��

������������390

��

��

������������825

��

��

������������767

��������Operating and administrative expenses

��

��

��

��

������������637

��

��

������������640

��

��

������������558

��

��

������������1,277

��

��

������������1,203

��������Premium taxes

��

��

��

��

������������72

��

��

������������72

��

��

������������68

��

��

������������144

��

��

������������124

��������Financing charges

��

��

��

��

������������72

��

��

������������72

��

��

������������72

��

��

������������144

��

��

������������144

��������Amortization of finite life intangible assets

��

��

��

��

������������28

��

��

������������26

��

��

������������25

��

��

������������54

��

��

������������48

Earnings before income taxes

��

��

��

��

������������589

��

��

������������533

��

��

������������723

��

��

������������1,122

��

��

������������1,226

Income taxes

��

��

��

��

������������72

��

��

������������57

��

��

������������161

��

��

������������129

��

��

������������230

Net earnings before non-controlling interests

��

��

��

��

������������517

��

��

������������476

��

��

������������562

��

��

������������993

��

��

������������996

Attributable to non-controlling interests

��

��

��

��

������������(2)

��

��

������������-

��

��

������������12

��

��

������������(2)

��

��

������������7

Net earnings

��

��

��

��

������������519

��

��

������������476

��

��

������������550

��

��

������������995

��

��

������������989

Perpetual preferred share dividends

��

��

��

��

������������28

��

��

������������25

��

��

������������24

��

��

������������53

��

��

������������48

Net earnings - common shareholders

��

��

��

$

491

��

$

451

��

$

526

��

$

942

��

$

941

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

Earnings per common share

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��������Basic

��

��

��

$

0.517

��

$

0.475

��

$

0.553

��

$

0.992

��

$

0.991

��������Diluted

��

��

��

$

0.513

��

$

0.472

��

$

0.550

��

$

0.985

��

$

0.986

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��





CONSOLIDATED BALANCE SHEETS (unaudited)

(in Canadian $ millions)










































































































































































































































































































































































































































































































































































































































































































































































��

��

��

��

��

��

��

June 30

��

��

��

December 31

��

��

��

��

��

��

��

2012

��

��

��

2011

Assets

��

��

��

��

��

��

��

��

��

��

��

Cash and cash equivalents

��

��

��

��

��

$

1,739

��

��

$

2,056

Bonds

��

��

��

��

��

��

������������82,120

��

��

��

������������78,073

Mortgage loans

��

��

��

��

��

��

������������17,200

��

��

��

������������17,432

Stocks

��

��

��

��

��

��

������������6,670

��

��

��

������������6,704

Investment properties

��

��

��

��

��

��

������������3,298

��

��

��

������������3,201

Loans to policyholders

��

��

��

��

��

��

������������7,153

��

��

��

������������7,162

��

��

��

��

��

��

��

������������118,180

��

��

��

������������114,628

Funds held by ceding insurers��

��

��

��

��

��

��

������������10,121

��

��

��

������������9,923

Goodwill

��

��

��

��

��

��

������������5,401

��

��

��

������������5,401

Intangible assets

��

��

��

��

��

��

������������3,150

��

��

��

������������3,154

Derivative financial instruments

��

��

��

��

��

��

������������927

��

��

��

������������968

Owner occupied properties

��

��

��

��

��

��

������������509

��

��

��

������������491

Fixed assets

��

��

��

��

��

��

������������147

��

��

��

������������137

Reinsurance assets

��

��

��

��

��

��

������������1,946

��

��

��

������������2,061

Other assets

��

��

��

��

��

��

������������4,596

��

��

��

������������4,283

Deferred tax assets

��

��

��

��

��

��

������������1,112

��

��

��

������������1,140

Segregated funds for the risk of unitholders

��

��

��

��

��

��

������������99,208

��

��

��

������������96,582

��

��

��

��

��

��

��

��

��

��

��

��

Total assets

��

��

��

��

��

$

245,297

��

��

$

238,768

��

��

��

��

��

��

��

��

��

��

��

��

Liabilities

��

��

��

��

��

��

��

��

��

��

��

Insurance contract liabilities

��

��

��

��

��

$

116,985

��

��

$

114,730

Investment contract liabilities

��

��

��

��

��

��

������������762

��

��

��

������������782

Debentures and other debt instruments

��

��

��

��

��

��

������������4,398

��

��

��

������������4,313

Funds held under reinsurance contracts

��

��

��

��

��

��

������������167

��

��

��

������������169

Derivative financial instruments

��

��

��

��

��

��

������������399

��

��

��

������������316

Other liabilities

��

��

��

��

��

��

������������4,265

��

��

��

������������4,287

Deferred tax liabilities

��

��

��

��

��

��

������������948

��

��

��

������������929

Repurchase agreements

��

��

��

��

��

��

������������1,120

��

��

��

������������23

Capital trust securities

��

��

��

��

��

��

������������353

��

��

��

������������533

Investment and insurance contracts on account of unitholders

��

��

��

��

��

��

������������99,208

��

��

��

������������96,582

��

��

��

��

��

��

��

��

��

��

��

��

Total liabilities

��

��

��

��

��

��

������������228,605

��

��

��

������������222,664

��

��

��

��

��

��

��

��

��

��

��

��

Equity

��

��

��

��

��

��

��

��

��

��

��

Non-controlling interests

��

��

��

��

��

��

��

��

��

��

��

����Participating account surplus in subsidiaries

��

��

��

��

��

��

������������2,227

��

��

��

������������2,227

����Non-controlling interests in capital stock

��

��

��

��

��

��

������������3

��

��

��

������������3

Shareholders' equity

��

��

��

��

��

��

��

��

��

��

��

����Share capital

��

��

��

��

��

��

��

��

��

��

��

������������Perpetual preferred shares

��

��

��

��

��

��

������������2,144

��

��

��

������������1,894

������������Common shares

��

��

��

��

��

��

������������5,829

��

��

��

������������5,828

����Accumulated surplus

��

��

��

��

��

��

������������6,680

��

��

��

������������6,327

����Accumulated other comprehensive income (loss)

��

��

��

��

��

��

������������(253)

��

��

��

������������(233)

����Contributed surplus

��

��

��

��

��

��

������������62

��

��

��

������������58

Total equity

��

��

��

��

��

��

������������16,692

��

��

��

������������16,104

��

��

��

��

��

��

��

��

��

��

��

��

Total liabilities and equity

��

��

��

��

��

$

245,297

��

��

$

238,768

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��


��



Segmented Information (unaudited)



Consolidated Net Earnings


















































































































































































































































































































































































































































































































































































































































































































































































































For the three months ended June 30, 2012

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

Canada

��

��

��

United

States


��

��

��

��

Europe

��

��

��

Lifeco

Corporate


��

��

��

��

Total

Income:

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

Premium income

��

$

2,351

��

��

$

706

��

��

$

1,467

��

��

$

-

��

��

$

4,524

��

Net investment income

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

Regular net investment income

��

��

������������621

��

��

��

������������327

��

��

��

������������477

��

��

��

������������3

��

��

��

������������1,428

��

��

Changes in fair value through profit or loss

��

��

������������412

��

��

��

������������177

��

��

��

������������517

��

��

��

������������-

��

��

��

������������1,106

��

Total net investment income

��

��

������������1,033

��

��

��

������������504

��

��

��

������������994

��

��

��

������������3

��

��

��

������������2,534

��

Fee and other income

��

��

������������270

��

��

��

������������306

��

��

��

������������158

��

��

��

������������-

��

��

��

������������734

Total income

��

��

������������3,654

��

��

��

������������1,516

��

��

��

������������2,619

��

��

��

������������3

��

��

��

������������7,792

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

Benefits and expenses:

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

Paid or credited to policyholders

��

��

������������2,681

��

��

��

������������1,025

��

��

��

������������2,273

��

��

��

������������-

��

��

��

������������5,979

��

Other

��

��

������������636

��

��

��

������������333

��

��

��

������������149

��

��

��

������������6

��

��

��

������������1,124

��

Financing charges

��

��

������������34

��

��

��

������������34

��

��

��

������������4

��

��

��

������������-

��

��

��

������������72

��

Amortization of finite life intangible assets

��

��

������������11

��

��

��

������������14

��

��

��

������������3

��

��

��

������������-

��

��

��

������������28

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

Earnings before income taxes

��

��

������������292

��

��

��

������������110

��

��

��

������������190

��

��

��

������������(3)

��

��

��

������������589

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

Income taxes

��

��

������������43

��

��

��

������������22

��

��

��

������������7

��

��

��

������������-

��

��

��

������������72

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

Net earnings before non-controlling

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

interests

��

��

������������249

��

��

��

������������88

��

��

��

������������183

��

��

��

������������(3)

��

��

��

������������517

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

Non-controlling interests

��

��

������������(4)

��

��

��

������������(2)

��

��

��

������������4

��

��

��

������������-

��

��

��

������������(2)

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

Net earnings

��

��

������������253

��

��

��

������������90

��

��

��

������������179

��

��

��

������������(3)

��

��

��

������������519

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

Perpetual preferred share dividends

��

��

������������19

��

��

��

������������-

��

��

��

������������5

��

��

��

������������4

��

��

��

������������28

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

Net earnings before capital allocation

��

��

������������234

��

��

��

������������90

��

��

��

������������174

��

��

��

������������(7)

��

��

��

������������491

Impact of capital allocation

��

��

������������20

��

��

��

������������(4)

��

��

��

������������(14)

��

��

��

������������(2)

��

��

��

������������-

Net earnings - common shareholders

��

$

254

��

��

$

86

��

��

$

160

��

��

$

(9)

��

��

$

491

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��


























































































































































































































































































































































































































































































































































































































































































































































































































































































For the three months ended June 30, 2011

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

Canada

��

��

��

United

States

��

��

��

��

Europe

��

��

��

Lifeco

Corporate

��

��

��

��

Total

Income:

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

Premium income

��

��

��

$

2,353

��

��

$

602

��

��

$

1,317

��

��

$

-

��

��

$

4,272

��

Net investment income

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

Regular net investment income

��

��

��

��

������������618

��

��

��

������������328

��

��

��

������������466

��

��

��

������������4

��

��

��

������������1,416

��

��

Changes in fair value through profit or loss

��

��

��

��

������������315

��

��

��

������������126

��

��

��

������������266

��

��

��

������������-

��

��

��

������������707

��

Total net investment income

��

��

��

��

������������933

��

��

��

������������454

��

��

��

������������732

��

��

��

������������4

��

��

��

������������2,123

��

Fee and other income

��

��

��

��

������������277

��

��

��

������������318

��

��

��

������������144

��

��

��

������������-

��

��

��

������������739

Total income

��

��

��

��

������������3,563

��

��

��

������������1,374

��

��

��

������������2,193

��

��

��

������������4

��

��

��

������������7,134

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

Benefits and expenses:

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

Paid or credited to policyholders

��

��

��

��

������������2,585

��

��

��

������������890

��

��

��

������������1,823

��

��

��

������������-

��

��

��

������������5,298

��

Other

��

��

��

��

������������598

��

��

��

������������251

��

��

��

������������156

��

��

��

������������11

��

��

��

������������1,016

��

Financing charges

��

��

��

��

������������34

��

��

��

������������34

��

��

��

������������4

��

��

��

������������-

��

��

��

������������72

��

Amortization of finite life intangible assets

��

��

��

��

������������11

��

��

��

������������12

��

��

��

������������2

��

��

��

������������-

��

��

��

������������25

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

Earnings before income taxes

��

��

��

��

������������335

��

��

��

������������187

��

��

��

������������208

��

��

��

������������(7)

��

��

��

������������723

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

Income taxes

��

��

��

��

������������69

��

��

��

������������55

��

��

��

������������37

��

��

��

������������-

��

��

��

������������161

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

Net earnings before non-controlling

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

interests

��

��

��

��

������������266

��

��

��

������������132

��

��

��

������������171

��

��

��

������������(7)

��

��

��

������������562

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

Non-controlling interests

��

��

��

��

������������6

��

��

��

������������2

��

��

��

������������4

��

��

��

������������-

��

��

��

������������12

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

Net earnings

��

��

��

��

������������260

��

��

��

������������130

��

��

��

������������167

��

��

��

������������(7)

��

��

��

������������550

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

Perpetual preferred share dividends

��

��

��

��

������������18

��

��

��

������������-

��

��

��

������������6

��

��

��

������������-

��

��

��

������������24

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

Net earnings before capital allocation

��

��

��

��

������������242

��

��

��

������������130

��

��

��

������������161

��

��

��

������������(7)

��

��

��

������������526

Impact of capital allocation

��

��

��

��

������������20

��

��

��

������������(2)

��

��

��

������������(14)

��

��

��

������������(4)

��

��

��

������������-

Net earnings - common shareholders

��

��

��

$

262

��

��

$

128

��

��

$

147

��

��

$

(11)

��

��

$

526

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��























































































































































































































































































































































































































































































































































































































































































































































































































































For the six months ended June 30, 2012

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

Canada

��

��

��

United

States


��

��

��

��

Europe

��

��

��

Lifeco

Corporate


��

��

��

��

Total

Income:

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

Premium income

��

��

$

4,716

��

��

$

1,527

��

��

$

2,810

��

��

$

-

��

��

$

9,053

��

Net investment income

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

Regular net investment income

��

��

��

������������1,275

��

��

��

������������651

��

��

��

������������940

��

��

��

������������1

��

��

��

������������2,867

��

��

Changes in fair value through profit or loss

��

��

��

������������262

��

��

��

������������198

��

��

��

������������450

��

��

��

������������-

��

��

��

������������910

��

Total net investment income

��

��

��

������������1,537

��

��

��

������������849

��

��

��

������������1,390

��

��

��

������������1

��

��

��

������������3,777

��

Fee and other income

��

��

��

������������547

��

��

��

������������608

��

��

��

������������303

��

��

��

������������-

��

��

��

������������1,458

Total income

��

��

��

������������6,800

��

��

��

������������2,984

��

��

��

������������4,503

��

��

��

������������1

��

��

��

������������14,288

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

Benefits and expenses:

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

Paid or credited to policyholders

��

��

��

������������4,866

��

��

��

������������2,028

��

��

��

������������3,828

��

��

��

������������-

��

��

��

������������10,722

��

Other

��

��

��

������������1,283

��

��

��

������������663

��

��

��

������������290

��

��

��

������������10

��

��

��

������������2,246

��

Financing charges

��

��

��

������������68

��

��

��

������������67

��

��

��

������������9

��

��

��

������������-

��

��

��

������������144

��

Amortization of finite life intangible assets

��

��

��

������������22

��

��

��

������������27

��

��

��

������������5

��

��

��

������������-

��

��

��

������������54

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

Earnings before income taxes

��

��

��

������������561

��

��

��

������������199

��

��

��

������������371

��

��

��

������������(9)

��

��

��

������������1,122

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

Income taxes

��

��

��

������������77

��

��

��

������������31

��

��

��

������������23

��

��

��

������������(2)

��

��

��

������������129

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

Net earnings before non-controlling

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

interests

��

��

��

������������484

��

��

��

������������168

��

��

��

������������348

��

��

��

������������(7)

��

��

��

������������993

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

Non-controlling interests

��

��

��

������������(10)

��

��

��

������������-

��

��

��

������������8

��

��

��

������������-

��

��

��

������������(2)

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

Net earnings

��

��

��

������������494

��

��

��

������������168

��

��

��

������������340

��

��

��

������������(7)

��

��

��

������������995

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

Perpetual preferred share dividends

��

��

��

������������37

��

��

��

������������-

��

��

��

������������11

��

��

��

������������5

��

��

��

������������53

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

Net earnings before capital allocation

��

��

��

������������457

��

��

��

������������168

��

��

��

������������329

��

��

��

������������(12)

��

��

��

������������942

Impact of capital allocation

��

��

��

������������39

��

��

��

������������(7)

��

��

��

������������(28)

��

��

��

������������(4)

��

��

��

������������-

Net earnings - common shareholders

��

��

$

496

��

��

$

161

��

��

$

301

��

��

$

(16)

��

��

$

942

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��










































































































































































































































































































































































































































































































































































































































































































































































































































For the six months ended June 30, 2011

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

Canada

��

��

��

United

States

��

��

��

��

Europe

��

��

��

Lifeco

Corporate

��

��

��

��

Total

Income:

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

Premium income

��

��

��

$

4,632

��

��

$

1,354

��

��

$

2,581

��

��

$

-

��

��

$

8,567

��

Net investment income

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

Regular net investment income

��

��

��

��

������������1,234

��

��

��

������������656

��

��

��

������������947

��

��

��

������������6

��

��

��

������������2,843

��

��

Changes in fair value through profit or loss

��

��

��

��

������������251

��

��

��

������������157

��

��

��

������������112

��

��

��

������������-

��

��

��

������������520

��

Total net investment income

��

��

��

��

������������1,485

��

��

��

������������813

��

��

��

������������1,059

��

��

��

������������6

��

��

��

������������3,363

��

Fee and other income

��

��

��

��

������������553

��

��

��

������������632

��

��

��

������������274

��

��

��

������������-

��

��

��

������������1,459

Total income

��

��

��

��

������������6,670

��

��

��

������������2,799

��

��

��

������������3,914

��

��

��

������������6

��

��

��

������������13,389

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

Benefits and expenses:

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

Paid or credited to policyholders

��

��

��

��

������������4,766

��

��

��

������������1,840

��

��

��

������������3,271

��

��

��

������������-

��

��

��

������������9,877

��

Other

��

��

��

��

������������1,213

��

��

��

������������586

��

��

��

������������281

��

��

��

������������14

��

��

��

������������2,094

��

Financing charges

��

��

��

��

������������68

��

��

��

������������67

��

��

��

������������9

��

��

��

������������-

��

��

��

������������144

��

Amortization of finite life intangible assets

��

��

��

��

������������21

��

��

��

������������23

��

��

��

������������4

��

��

��

������������-

��

��

��

������������48

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

Earnings before income taxes

��

��

��

��

������������602

��

��

��

������������283

��

��

��

������������349

��

��

��

������������(8)

��

��

��

������������1,226

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

Income taxes

��

��

��

��

������������91

��

��

��

������������64

��

��

��

������������75

��

��

��

������������-

��

��

��

������������230

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

Net earnings before non-controlling

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

interests

��

��

��

��

������������511

��

��

��

������������219

��

��

��

������������274

��

��

��

������������(8)

��

��

��

������������996

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

Non-controlling interests

��

��

��

��

������������6

��

��

��

������������-

��

��

��

������������1

��

��

��

������������-

��

��

��

������������7

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

Net earnings

��

��

��

��

������������505

��

��

��

������������219

��

��

��

������������273

��

��

��

������������(8)

��

��

��

������������989

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

Perpetual preferred share dividends

��

��

��

��

������������37

��

��

��

������������-

��

��

��

������������11

��

��

��

������������-

��

��

��

������������48

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

Net earnings before capital allocation

��

��

��

��

������������468

��

��

��

������������219

��

��

��

������������262

��

��

��

������������(8)

��

��

��

������������941

Impact of capital allocation

��

��

��

��

������������39

��

��

��

������������(3)

��

��

��

������������(29)

��

��

��

������������(7)

��

��

��

������������-

Net earnings - common shareholders

��

��

��

$

507

��

��

$

216

��

��

$

233

��

��

$

(15)

��

��

$

941


��



��



��



��



SOURCE: Great-West Lifeco Inc.







For further information:

Marlene Klassen, APR
Assistant Vice-President, Communication Services
204-946-7705









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