This earnings information launch for Nice-West Lifeco Inc. must be learn along with the Firm’s Administration Dialogue & Evaluation (MD&A) and Consolidated Annual Monetary Statements for the interval ended December 31, 2022, ready in accordance with Worldwide Monetary Reporting Requirements (IFRS) as issued by the Worldwide Accounting Requirements Board except in any other case famous. These studies can be found on greatwestlifeco.com underneath Monetary Stories. Extra info regarding Nice-West Lifeco is accessible on sedar.comOpens a brand new web site in a brand new window. Readers are referred to the cautionary notes concerning Ahead-Wanting Info and Non-GAAP Monetary Measures and Ratios on the finish of this launch. All figures are expressed in tens of millions of Canadian {dollars}, except in any other case famous.
Winnipeg, February 8, 2023 … Nice-West Lifeco Inc. (Lifeco or the Firm) at this time introduced its fourth quarter 2022 outcomes. Internet earnings of $1,026 million and base earnings1 of $892 million have been up from $765 million and $825 million within the fourth quarter of 2021, respectively.
“Nice-West Lifeco’s fourth quarter efficiency was robust towards a backdrop of continuous macroeconomic instability. Every of our companies continued to ship on their commitments to stakeholders, whereas making progress towards strategic priorities together with Empower’s integration actions in the USA,” mentioned Paul Mahon, President and CEO of Nice-West Lifeco. “We’re happy with our top-line and bottom-line momentum supported by efficient threat administration and disciplined capital allocation throughout our diversified companies. Given our robust momentum and outcomes, we’ve got elevated our widespread shareholder dividend by 6%.”
Key Monetary Highlights
Though the tempo of rate of interest will increase slowed within the fourth quarter, rates of interest continued to extend usually in response by central banks to elevated, broad primarily based ranges of inflation that are impacting enterprise and shopper confidence. Fairness markets stay risky, ending larger than September 30, 2022 ranges; nonetheless, relative to the fourth quarter final yr, common fairness ranges for the quarter have been down between 7% and 16% in Canada, the USA (U.S.) and Europe and stage in the UK (U.Ok.). As well as, the Canadian greenback weakened notably towards the British pound and the Euro, though strengthened towards the U.S. greenback in comparison with the fourth quarter of 2021.
Regardless of difficult market situations, Lifeco’s outcomes mirror the resilience of its diversified enterprise portfolio and give attention to operational effectivity. Strong ends in the Capital and Threat Options and Europe segments balanced softer ends in Canada, notably in Particular person Buyer, and for the Firm’s wealth administration fee-based companies in Canada and the U.S.
Base earnings per share (EPS) for the fourth quarter of 2022 of $0.96 elevated from $0.89 a yr in the past. The rise was primarily because of larger new enterprise progress within the Capital and Threat Options phase, base earnings of $64 million (US$47 million) associated to the acquisition of the retirement providers enterprise of Prudential Monetary, Inc. (Prudential) in addition to beneficial expertise within the Europe and Capital and Threat Options segments. The rise was partially offset by decrease charge earnings in Canada and the U.S. in addition to much less beneficial expertise within the Canada phase.
Reported internet EPS for the fourth quarter of 2022 was $1.10, up from $0.82 a yr in the past, primarily because of a rise in base earnings in addition to extra beneficial market-related impacts on liabilities and actuarial assumption adjustments. As well as, the Firm had a internet beneficial affect of revaluation of internet deferred tax property and actuarial liabilities ensuing from a rise to the Canadian federal company tax fee substantively enacted throughout the fourth quarter of 2022. This stuff have been partially offset by larger restructuring and integration prices within the U.S. phase.
Return on fairness and base return on fairness of 13.6% within the fourth quarter of 2022 continued to be strong. Base return on fairness was modestly beneath the Firm’s goal vary, reflecting the continued macroeconomic challenges skilled within the quarter.
1 Base earnings is a non-GAAP monetary measure. Check with the “Non-GAAP Monetary Measures and Ratios” part of this doc for extra particulars.
2 Base EPS and base return on fairness are non-GAAP ratios. Check with the “Non-GAAP Monetary Measures and Ratios” part of this doc for extra particulars.
3 Base return on fairness and return on fairness are calculated utilizing the trailing 4 quarters of relevant earnings and customary shareholders’ fairness.
Enterprise Highlights
Efficiency towards medium-term monetary targets in 2022
- Lifeco’s annual base EPS4 of $3.455 declined 1.5% in comparison with 2021 (8.8% compound annual progress fee5 over the past 5 years) in comparison with 8%-10% each year goal.
- Lifeco’s base return on fairness4 for 2022 was 13.6% (13.1% common base return on fairness over the past 5 years) in comparison with 14%-15% goal.
- Lifeco’s base dividend payout ratio4 in 2022 was 56.7% (58.3% common payout ratio over the past 5 years) in comparison with 45%-55% goal.
Key strategic transactions superior in-quarter
- The Firm accomplished the mixing of Massachusetts Mutual Life Insurance coverage Firm’s retirement enterprise (MassMutual) as of December 31, 2022 and has achieved US$160 million of pre-tax run fee value synergies in keeping with unique expectations. Empower is on monitor to realize run fee income synergies of US$30 million pre-tax in 2024 and income synergies are anticipated to proceed to develop past 2024. Empower incurred restructuring and integration bills of US$125 million pre-tax associated to the MassMutual acquisition, US$116 million of which has been expensed, in keeping with unique expectations.
- The Firm accomplished the mixing of Private Capital Company (Private Capital) as of December 31, 2022. To this point, the Firm incurred US$57 million of pre-tax restructuring and integration prices, US$43 million of which has been expensed, in keeping with unique expectations.
- Integration actions with respect to Prudential proceed and the Firm stays assured that buyer retention and expense synergies are on monitor. As of December 31, 2022, annualized run fee value synergies of US$43 million pre-tax have been achieved. Income synergies of US$20 million are anticipated on a run-rate foundation by the tip of 2024 and are anticipated to develop to US$50 million by 2026.
4 This metric is a non-GAAP ratio. Check with the “Non-GAAP Monetary Measures and Ratios” part of this doc for extra particulars.
5 2017 base earnings have been calculated by excluding gadgets from internet earnings as mentioned within the “Non-GAAP Monetary Measures and Ratios” part of this doc. As well as, the Firm excluded earnings associated to the enterprise transferred to Protecting Life underneath an indemnity reinsurance settlement in 2019 to supply a extra correct comparability for the 5-year progress fee. 2017 base earnings have been $2,244 million and base earnings per share was $2.269 in comparison with internet earnings of $2,149 million and internet earnings per share of $2.173. Objects excluded from 2017 base earnings included a constructive affect on actuarial assumption adjustments and administration actions of $243 million, a unfavorable affect on market-related impacts on liabilities of $3 million, restructuring and integration prices of $160 million, a internet cost on enterprise disposition of $122 million, a internet cost on tax legislative impacts of $216 million and $163 million of earnings associated to the enterprise transferred to Protecting Life in 2019.
Capital power and monetary flexibility maintained
- The Firm’s capital place remained robust at December 31, 2022, with a LICAT Ratio4, 6 of 120% for Canada Life, Lifeco’s main Canadian working subsidiary, rising by two factors within the quarter because of the affect of earnings internet of dividends and the continuing phasing in of the LICAT rate of interest state of affairs shift in North America in addition to foreign money actions. The rise was partially offset by elevated capital required to assist enterprise progress and the affect of rate of interest actions.
Consolidated property of $701 billion and property underneath administration (AUA)7 of $2.5 trillion
- Consolidated property have been $701 billion and AUA have been $2.5 trillion as at December 31, 2022, a rise of 11% and 9%, respectively, from December 31, 2021.
Disciplined Selections that Allow Development
Lifeco continues to give attention to its core methods of delivering monetary safety and wellness options via the office, offering advice-centered wealth administration, delivering robust funding and asset administration and leveraging threat and capital administration experience.
CANADA
- Canada Life is gearing as much as assist the wellbeing of an extra 1.5 million Canadians coated by the Public Service Well being Care Plan (PSHCP). The Firm is constructing further digital capabilities that will likely be leveraged by the remainder of the Group Buyer enterprise to enhance effectivity and customer support. For instance, the Firm has enriched plan member websites to permit earlier entry; members can register and entry their plan and protection info even earlier than they’re absolutely eligible for his or her employment advantages.
- Plan Member as Prospects was rebranded as Freedom Expertise. The Firm is leveraging this model by renaming a number of direct-to-consumer merchandise distributed by Group Buyer with the Freedom Expertise model. A devoted crew will likely be targeted on distributing these merchandise and bringing the Freedom Expertise to Canadians.
- Canada Life continues to modernize legacy know-how platforms and develop its SimpleProtect digital app options and protection to enhance the advisor and buyer expertise. This follows the acquisitions of majority curiosity in two distribution companies earlier in 2022 to proceed strengthening the Firm’s distribution community.
- Through the fourth quarter of 2022, Canada Life accessed capabilities in Bangalore, India, for the processing of shopper claims. The growth leverages current Empower operations to drive effectivity and helps the Canadian advantages fee again workplace and useful resource complement, permitting the Firm to course of claims for Canadians practically 24 hours a day, 5 days every week, to maintain tempo with buyer expectations and ship an improved expertise.
UNITED STATES
Along with the updates to the strategic transactions talked about above:
- At Empower, the mixing efforts of MassMutual are considerably full with buyer asset and income retention charges of over 86%, forward of unique targets. The Firm has achieved US$160 million of ultimate pre-tax run fee value synergies in keeping with unique expectations.
- Empower continues to construct its retail enterprise by leveraging Private Capital capabilities to ship hybrid digital recommendation and wealth administration options to drive elevated retail penetration, realizing spectacular gross sales progress of 15% over the third quarter of 2022 regardless of market volatility.
- Putnam sustained robust funding efficiency. As of December 31, 2022, roughly 73% and 78% of Putnam’s fund property carried out at ranges above the Lipper median on a three-year and five-year foundation, respectively. As well as, 43% and 66% of Putnam’s fund property have been within the Lipper prime quartile on a three-year and five-year foundation, respectively. Putnam has 40 funds at the moment rated 4 or 5 stars by Morningstar Rankings.
- Throughout 2022, Putnam made a collection of product-related bulletins to fulfill evolving market demand for sustainable funding choices together with 5 actively managed, clear change traded funds (ETFs) which have been launched in January 2023, the repositioning of Putnam’s RetirementReady Funds target-date collection because the Putnam Sustainable Retirement Funds, and the launching of two new clear and actively managed fairness ETFs, targeted on enterprise improvement corporations and firms working on the intersection of know-how and biology.
6 The Life Insurance coverage Capital Adequacy Take a look at (LICAT) Ratio relies on the consolidated outcomes of The Canada Life Assurance Firm (Canada Life), Lifeco’s main Canadian working subsidiary. The LICAT Ratio is calculated in accordance with the Workplace of Superintendent of Monetary Establishments (OSFI)’ guideline – Life Insurance coverage Capital Adequacy Take a look at. Check with the “Capital Administration and Adequacy” part of the Firm’s 2022 annual MD&A for extra particulars.
7 Property underneath administration is a non-GAAP monetary measure. Check with the “Non-GAAP Monetary Measures and Ratios” part of this doc for extra particulars.
EUROPE
In Europe, the Firm superior its strategic transactions in Eire, increasing its operational scale and choices to purchasers.
- Within the second quarter of 2021, a 50:50 three way partnership settlement was reached by Allied Irish Banks plc (AIB) and Canada Life Irish Holding Firm Restricted to kind a brand new life assurance firm. In December 2022, the three way partnership settlement obtained authorization in precept from the Central Financial institution of Eire.
- In This autumn 2022, Irish Life accomplished the portfolio switch of Ark Life Assurance Firm dac (Ark Life), which was built-in into Irish Life’s Retail division efficient October 1, 2022. This follows the acquisition of Ark Life on November 1, 2021 by Irish Life Group Restricted. Through the fourth quarter of 2022, Ark Life Assurance Firm dac modified its authorized identify to Irish Life Ark Dublin dac.
CAPITAL AND RISK SOLUTIONS
- The Capital and Threat Options phase continued to develop by offering tailor-made options to prospects whereas rising diversification inside the portfolio. Throughout 2022, the Capital and Threat Options phase expanded its worldwide presence in focused new markets, together with Asia, whereas persevering with to give attention to core markets and product growth in Europe and the U.S.
The Firm intends to take a position strategically, each organically and thru acquisitions, to drive progress and productiveness, whereas sustaining robust threat and expense self-discipline, to ship sustainable long-term worth to its prospects and shareholders.
SEGMENTED OPERATING RESULTS
For reporting functions, Lifeco’s consolidated working outcomes are grouped into 5 reportable segments – Canada, United States, Europe, Capital and Threat Options and Lifeco Company – reflecting the administration and company construction of the Firm. For extra info, consult with the Firm’s 2022 Annual Administration’s Dialogue and Evaluation (MD&A).
CANADA
- This autumn Canada phase base earnings of $295 million and internet earnings of $380 million – Base earnings for the fourth quarter of 2022 have been $295 million, down 7% in comparison with the fourth quarter of 2021, primarily because of decrease charge earnings pushed by decrease property, and fewer beneficial particular person insurance coverage and funding associated expertise. This stuff have been partially offset by adjustments in sure tax estimates and powerful Group long-term incapacity outcomes pushed by efficient claims administration and disciplined pricing actions. Internet earnings for the fourth quarter of 2022 have been $380 million, up from $307 million within the fourth quarter of 2021, primarily because of an $84 million beneficial affect ensuing from a rise to the Canadian statutory earnings tax fee.
UNITED STATES
- This autumn United States (U.S.) Monetary Providers base earnings of US$151 million ($206 million) and internet earnings of US$138 million ($187 million) – U.S. Monetary Providers base earnings for the fourth quarter of 2022 have been US$151 million ($206 million), up US$41 million or 37% from the fourth quarter of 2021. The rise was primarily because of base earnings of US$47 million associated to the Prudential acquisition in addition to larger contributions from funding expertise. This stuff have been partially offset by decrease charge earnings pushed by decrease common fairness markets and transaction volumes, in addition to larger bills pushed by enterprise progress.
- Empower progress in AUA and participant accounts – Empower AUA elevated to US$1.3 trillion at December 31, 2022 from US$1.2 trillion at December 31, 2021. Empower participant accounts have grown to 17.8 million at December 31, 2022, up from 13.0 million at December 31, 2021 and 17.5 million at September 30, 2022. The will increase in AUA and members in comparison with December 31, 2021 have been primarily the results of the acquisition of Prudential.
- This autumn Putnam internet lack of US$20 million ($27 million) – Putnam’s internet loss for the fourth quarter of 2022 was US$20 million ($27 million), in comparison with internet earnings of US$35 million ($43 million) within the fourth quarter of 2021, primarily because of decrease different property underneath administration8 primarily based charge earnings and the unfavourable affect of sure tax gadgets. For Putnam, there have been no variations between internet earnings (loss) and base earnings (loss).
EUROPE
- This autumn Europe phase base earnings of $239 million and internet earnings of $287 million – Base earnings for the fourth quarter of 2022 have been $239 million, up 12% in comparison with the fourth quarter of 2021. The rise was primarily because of beneficial funding expertise within the U.Ok. and Eire in addition to beneficial longevity expertise within the U.Ok. This stuff have been partially offset by much less beneficial morbidity expertise in Eire, the unfavourable affect of foreign money motion, and the non-recurrence of adjustments to sure tax estimates within the U.Ok. within the prior yr. Internet earnings for the fourth quarter of 2022 have been $287 million, up $48 million from the fourth quarter of 2021, primarily because of decrease transaction prices, together with contingent consideration provisions, associated to acquisitions in Eire and a internet cost on enterprise disposition within the prior yr. This stuff have been partially offset by decrease contributions from actuarial assumption adjustments.
CAPITAL AND RISK SOLUTIONS
- This autumn Capital and Threat Options phase base earnings of $187 million and internet earnings of $211 million Base earnings for the fourth quarter of 2022 have been $187 million, in comparison with $145 million within the fourth quarter of 2021, primarily because of robust new enterprise progress, beneficial longevity expertise and improved claims expertise on the U.S. life enterprise. The rise was partially offset by the affect of foreign money motion. Internet earnings for the fourth quarter of 2022 elevated $78 million from the prior yr, primarily because of larger contributions from insurance coverage contract legal responsibility foundation adjustments and a lower in actuarial liabilities on a legacy block of enterprise with funding efficiency ensures.
The Firm’s well-diversified companies, mixed with enterprise power, resilience and expertise managing via market volatility, places the Firm in a robust place within the present setting to leverage alternatives for the long run.
8 Check with the “Glossary” part of the Firm’s 2022 Annual Administration’s Dialogue and Evaluation for extra particulars on the composition of this measure.
Replace on Transition to IFRS 17 and IFRS 9
IFRS 17, Insurance coverage Contracts (IFRS 17) has changed IFRS 4, Insurance coverage Contracts (IFRS 4) efficient January 1, 2023. Whereas the brand new commonplace will change the popularity and measurement of insurance coverage contracts and the corresponding presentation and disclosures within the Firm’s monetary statements, it isn’t anticipated to have a cloth monetary affect or to vary the Firm’s underlying enterprise technique. IFRS 9, Monetary Devices (IFRS 9) has changed IAS 39, Monetary Devices: Recognition and Measurement efficient January 1, 2023 and isn’t anticipated to result in a cloth change within the stage of invested property. Upon adoption of IFRS 17 and IFRS 9, the Firm expects a rise in internet earnings volatility.
The Firm will report underneath the brand new requirements for the primary time for the quarter ended March 31, 2023. The Firm continues to guage the affect of the adoption of those requirements. The anticipated impacts of the adoption of IFRS 17 embody:
- Companies representing roughly 65% of base earnings9, 10 are anticipated to expertise restricted or no affect;
- The January 1, 2022 shareholders’ fairness is predicted to lower by roughly 12% on the adoption of IFRS 17 on January 1, 2023 in keeping with unique expectations, primarily because of the institution of the contractual service margin (CSM), partially offset by the elimination of provisions now not required underneath IFRS 17;
- The CSM established for in-force contracts as at January 1, 2022 was $6.3 billion related to the shareholders’ account and $2.3 billion related to the taking part account. This doesn’t embody the CSM on in-force segregated fund enterprise which doesn’t have a cloth affect on capital or opening fairness;
- Low-single digit proportion lower in proforma base earnings9, 10 is predicted on account of transition with no materials change to base earnings trajectory; nonetheless, elevated volatility in internet earnings is predicted pushed by the de-linking of asset and legal responsibility measurement. Precise variations between IFRS 4 and IFRS 17 ends in any given interval will fluctuate relying on the composition of earnings drivers;
- Medium-term monetary targets for base EPS progress11 and base dividend payout11 ratio stay unchanged;
- Medium-term monetary goal for base ROE11 has elevated by 2% to 16-17% reflecting the change in shareholders’ fairness; and
- Monetary power will likely be maintained and a constructive affect of roughly 10 factors to the March 31, 2023 Canada Life consolidated LICAT Ratio is predicted12 primarily based on the 2023 LICAT Guideline and present market and financial situations.
9 It is a non-GAAP monetary measure. Check with the “Non-GAAP Monetary Measures and Ratios” part of this doc for extra particulars.
10 Proforma base and internet earnings are calculated primarily based on the anticipated 2023 earnings combine and composition as at the beginning of 2023, together with the reflection of insurance coverage contract earnings on an IFRS 17 foundation and adjusted to mirror absolutely synergized earnings from the acquisitions of MassMutual’s and Prudential’s retirement providers companies. Many of those estimates and assumptions are primarily based on elements and occasions that aren’t inside the management of the Firm’s administration and there’s no assurance that they are going to show to be right. Check with “Cautionary Notice concerning Ahead-looking Info” and “Cautionary Notice concerning Non-GAAP Monetary Measures and Ratios” on the finish of this doc.
11 This metric is a non-GAAP ratio. Check with the “Non-GAAP Monetary Measures and Ratios” part of this doc for extra particulars.
12 Precise affect will depend upon market and financial situations and the Firm’s working outcomes on the time of transition.
QUARTERLY DIVIDENDS
The Board of Administrators authorized a quarterly dividend of $0.5200 per share on the widespread shares of Lifeco, a rise of 6% payable March 31, 2023 to shareholders of document on the shut of enterprise March 3, 2023.
As well as, the Administrators authorized quarterly dividends on Lifeco’s first most popular shares payable March 31, 2023 to shareholders of document on the shut of enterprise March 3, 2023, as follows:
|
First Most popular Shares |
Quantity, per share |
|
Collection G |
$0.3250 |
|
Collection H |
$0.30313 |
|
Collection I |
$0.28125 |
|
Collection L |
$0.353125 |
|
Collection M |
$0.3625 |
|
Collection N |
$0.109313 |
|
Collection P |
$0.3375 |
|
Collection Q |
$0.321875 |
|
Collection R |
$0.3000 |
|
Collection S |
$0.328125 |
|
Collection T |
$0.321875 |
|
Collection Y |
$0.28125 |
For functions of the Earnings Tax Act (Canada), and any comparable provincial laws, the dividends referred to above are eligible dividends.
Fourth Quarter Convention Name
Lifeco’s fourth quarter convention name and audio webcast will likely be held February 9, 2023 at 3:30 p.m. (ET). The decision and webcast will be accessed via greatwestlifeco.com/news-events/occasions or by telephone at:
- Members within the Toronto space: 416-915-3239
- Members from North America: 1-800-319-4610
A replay of the decision will likely be out there till March 10, 2023 and will be accessed by calling 1-855-669-9658 or 604-674-8052 (passcode: 9514). The archived webcast will likely be out there on greatwestlifeco.com.
Chosen monetary info is hooked up.
GREAT-WEST LIFECO INC.
Nice-West Lifeco is a global monetary providers holding firm with pursuits in life insurance coverage, medical insurance, retirement and funding providers, asset administration and reinsurance companies. We function in Canada, the USA and Europe underneath the manufacturers Canada Life, Empower, Putnam Investments, and Irish Life. On the finish of 2022, our corporations had roughly 31,000 workers, 234,500 advisor relationships, and hundreds of distribution companions – all serving over 38 million buyer relationships throughout these areas. Nice- West Lifeco trades on the Toronto Inventory Alternate (TSX) underneath the ticker image GWO and is a member of the Energy Company group of corporations. To be taught extra, go to greatwestlifeco.com.
Foundation of presentation
The annual consolidated monetary statements of Lifeco have been ready in accordance with Worldwide Monetary Reporting Requirements (IFRS) except in any other case famous and are the idea for the figures offered on this launch, except in any other case famous.
Cautionary be aware concerning Ahead-Wanting Info
This launch comprises forward-looking info. Ahead-looking info consists of statements which can be predictive in nature, rely on or consult with future occasions or situations, or embody phrases comparable to “will”, “might”, “expects”, “anticipates”, “intends”, “plans”, “believes”, “estimates”, “goal”, “goal”, “potential” and different comparable expressions or unfavorable variations thereof. Ahead-looking info consists of, with out limitation, statements concerning the Firm’s operations, enterprise (together with enterprise combine), monetary situation, anticipated monetary efficiency (together with revenues, earnings or progress charges and medium-term monetary targets), ongoing enterprise methods or prospects, climate-related targets, anticipated world financial situations and potential future actions by the Firm, together with statements made with respect to the anticipated value (together with deferred consideration), advantages, timing of integration actions and timing and extent of income and expense synergies of acquisitions and divestitures, together with however not restricted to the acquisitions of the full-service retirement enterprise of Prudential, Private Capital and the retirement providers enterprise of Massachusetts Mutual Life Insurance coverage Firm (MassMutual), anticipated capital administration actions and use of capital, estimates of threat sensitivities affecting capital adequacy ratios, anticipated dividend ranges, anticipated value reductions and financial savings, anticipated expenditures or investments (together with however not restricted to funding in know-how infrastructure and digital capabilities and options), the timing and completion of the three way partnership between Allied Irish Banks plc (AIB) and Canada Life Irish Holding Firm Restricted, the affect of regulatory developments on the Firm’s enterprise technique and progress targets, the anticipated affect of the continuing pandemic well being occasion ensuing from the coronavirus (COVID-19) and associated financial and market impacts on the Firm’s enterprise operations, monetary outcomes and monetary situation. Ahead-looking info additionally consists of, with out limitation, statements concerning the anticipated affect (or lack of affect) of IFRS 17, Insurance coverage Contracts and IFRS 9, Monetary Devices on the Firm’s enterprise technique, monetary power, deployable capital, Life Insurance coverage Capital Adequacy Take a look at (LICAT) ratio, base and internet earnings, shareholders’ fairness, scores and leverage ratios.
Ahead-looking statements are primarily based on expectations, forecasts, estimates, predictions, projections and conclusions about future occasions that have been present on the time of the statements and are inherently topic to, amongst different issues, dangers, uncertainties and assumptions concerning the Firm, financial elements and the monetary providers trade usually, together with the insurance coverage, mutual fund and retirement options industries. They aren’t ensures of future efficiency, and the reader is cautioned that precise occasions and outcomes might differ materially from these expressed or implied by forward-looking statements. Many of those assumptions are primarily based on elements and occasions that aren’t inside the management of the Firm and there’s no assurance that they are going to show to be right. Specifically, statements concerning the anticipated affect of IFRS 17 on the Firm (together with statements concerning the affect on base and internet earnings and the Canada Life Assurance Firm LICAT Ratio) are primarily based on the Firm’s anticipated 2023 earnings combine and composition as at the beginning of 2023, together with the reflection of insurance coverage contract earnings on an IFRS 17 foundation and adjusted to mirror absolutely synergized earnings from the acquisitions of MassMutual and Prudential’s retirement providers companies, and on present market and financial situations. Additional, the LICAT sensitivities offered on this MD&A have been ready on the idea of IFRS 4, Insurance coverage Contracts and IAS 39, Monetary Devices: Recognition and Measurement (IAS 39) and will change on transition to IFRS 17 and IFRS 9. In all circumstances, whether or not or not precise outcomes differ from forward-looking info might depend upon quite a few elements, developments and assumptions, together with, with out limitation, the severity, magnitude and affect of the COVID-19 pandemic (together with the consequences of the COVID-19 pandemic and the consequences of governments’ and different companies’ responses to the COVID-19 pandemic on the financial system and the Firm’s monetary outcomes, monetary situation and operations), the length of COVID-19 impacts and the provision and adoption of vaccines, the effectiveness of vaccines, the emergence of COVID-19 variants, geopolitical tensions and associated financial impacts, assumptions round gross sales, charge charges, asset breakdowns, lapses, plan contributions, redemptions and market returns, the flexibility to combine the acquisitions of Private Capital and the retirement providers companies of MassMutual and Prudential, the flexibility to leverage Empower’s, Private Capital’s and MassMutual’s and Prudential’s retirement providers companies and obtain anticipated synergies, buyer behaviour (together with buyer response to new merchandise), the Firm’s fame, market costs for merchandise offered, gross sales ranges, premium earnings, charge earnings, expense ranges, mortality expertise, morbidity expertise, coverage and plan lapse charges, participant internet contribution, reinsurance preparations, liquidity necessities, capital necessities, credit score scores, taxes, inflation, curiosity and overseas change charges, funding values, hedging actions, world fairness and capital markets (together with continued entry to fairness and debt markets), trade sector and particular person debt issuers’ monetary situations (together with developments and volatility arising from the COVID-19 pandemic, notably in sure industries that will comprise a part of the Firm’s funding portfolio), enterprise competitors, impairments of goodwill and different intangible property, the Firm’s potential to execute strategic plans and adjustments to strategic plans, technological adjustments, breaches or failure of data programs and safety (together with cyber assaults), funds required underneath funding merchandise, adjustments in native and worldwide legal guidelines and laws, adjustments in accounting insurance policies and the impact of making use of future accounting coverage adjustments, adjustments in actuarial requirements, surprising judicial or regulatory proceedings, catastrophic occasions, continuity and availability of personnel and third get together service suppliers, the Firm’s potential to finish strategic transactions and combine acquisitions, unplanned materials adjustments to the Firm’s amenities, buyer and worker relations or credit score preparations, ranges of administrative and operational efficiencies, adjustments in commerce organizations, and different basic financial, political and market elements in North America and internationally.
The reader is cautioned that the foregoing record of assumptions and elements is just not exhaustive, and there could also be different elements listed in different filings with securities regulators, together with elements set out in different filings with securities regulators, together with elements set out within the Firm’s 2022 Annual MD&A underneath “Threat Administration and Management Practices” and “Abstract of Crucial Accounting Estimates” and within the Firm’s annual info kind dated February 8, 2023 underneath “Threat Elements”, which, together with different filings, is accessible for evaluation at www.sedar.com. The reader can also be cautioned to think about these and different elements, uncertainties and potential occasions rigorously and to not place undue reliance on forward-looking info.
Apart from as particularly required by relevant regulation, the Firm doesn’t intend to replace any forward-looking info whether or not on account of new info, future occasions or in any other case.
Cautionary be aware concerning Non-GAAP Monetary Measures and Ratios
This launch comprises some non-Typically Accepted Accounting Ideas (GAAP) monetary measures and non-GAAP ratios as outlined in Nationwide Instrument 52-112 “Non-GAAP and Different Monetary Measures Disclosure”. Phrases by which non-GAAP monetary measures are recognized embody, however will not be restricted to, “base earnings (loss)”, “base earnings (loss) (US$)” and “property underneath administration”. Phrases by which non-GAAP ratios are recognized embody, however will not be restricted to, “base earnings per widespread share (EPS)”, and “base return on fairness (ROE)”. Non-GAAP monetary measures and ratios are used to supply administration and traders with further measures of efficiency to assist assess outcomes the place no comparable GAAP (IFRS) measure exists. Nonetheless, non-GAAP monetary measures and ratios don’t have commonplace meanings prescribed by GAAP (IFRS) and will not be immediately corresponding to comparable measures utilized by different corporations. Check with the “Non-GAAP Monetary Measures and Ratios” part on this launch for the suitable reconciliations of those non-GAAP monetary measures to measures prescribed by GAAP in addition to further particulars on every measure and ratio.
For extra info:
Media Relations
Liz Kulyk
204-926-5012
[email protected]
Investor Relations
Deirdre Neary
647-328-2134
[email protected]
