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February 8, 2023

Great-West Lifeco reports fourth quarter 2022 results; announces 6% dividend increase

This earnings news release for Great-West Lifeco Inc. should be read in conjunction with the Company’s Management Discussion & Analysis (MD&A) and Consolidated Annual Financial Statements for the period ended December 31, 2022, prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board unless otherwise noted. These reports are available on greatwestlifeco.com under Financial Reports. Additional information relating to Great-West Lifeco is available on sedar.comOpens a new website in a new window. Readers are referred to the cautionary notes regarding Forward-Looking Information and Non-GAAP Financial Measures and Ratios at the end of this release. All figures are expressed in millions of Canadian dollars, unless otherwise noted.

 

Winnipeg, February 8, 2023 ... Great-West Lifeco Inc. (Lifeco or the Company) today announced its fourth quarter 2022 results. Net earnings of $1,026 million and base earnings1 of $892 million were up from $765 million and $825 million in the fourth quarter of 2021, respectively.

“Great-West Lifeco’s fourth quarter performance was strong against a backdrop of continuing macroeconomic instability. Each of our businesses continued to deliver on their commitments to stakeholders, while making progress against strategic priorities including Empower’s integration activities in the United States,” said Paul Mahon, President and CEO of Great-West Lifeco. “We are pleased with our top-line and bottom-line momentum supported by effective risk management and disciplined capital allocation across our diversified businesses. Given our strong momentum and results, we have increased our common shareholder dividend by 6%.”

Key Financial Highlights

Although the pace of interest rate increases slowed in the fourth quarter, interest rates continued to increase generally in response by central banks to elevated, broad based levels of inflation which are impacting business and consumer confidence. Equity markets remain volatile, ending higher than September 30, 2022 levels; however, relative to the fourth quarter last year, average equity levels for the quarter were down between 7% and 16% in Canada, the United States (U.S.) and Europe and level in the United Kingdom (U.K.). In addition, the Canadian dollar weakened notably against the British pound and the Euro, although strengthened against the U.S. dollar compared to the fourth quarter of 2021.

Despite challenging market conditions, Lifeco’s results reflect the resilience of its diversified business portfolio and focus on operational efficiency.  Solid results in the Capital and Risk Solutions and Europe segments balanced softer results in Canada, particularly in Individual Customer, and for the Company’s wealth management fee-based businesses in Canada and the U.S.

Base earnings per share (EPS) for the fourth quarter of 2022 of $0.96 increased from $0.89 a year ago.  The increase was primarily due to higher new business growth in the Capital and Risk Solutions segment, base earnings of $64 million (US$47 million) related to the acquisition of the retirement services business of Prudential Financial, Inc. (Prudential) as well as favourable experience in the Europe and Capital and Risk Solutions segments.  The increase was partially offset by lower fee income in Canada and the U.S. as well as less favourable experience in the Canada segment.     

Reported net EPS for the fourth quarter of 2022 was $1.10, up from $0.82 a year ago, primarily due to an increase in base earnings as well as more favourable market-related impacts on liabilities and actuarial assumption changes. In addition, the Company had a net favourable impact of revaluation of net deferred tax assets and actuarial liabilities resulting from an increase to the Canadian federal corporation tax rate substantively enacted during the fourth quarter of 2022. These items were partially offset by higher restructuring and integration costs in the U.S. segment. 

Return on equity and base return on equity of 13.6% in the fourth quarter of 2022 continued to be solid. Base return on equity was modestly below the Company’s target range, reflecting the continued macroeconomic challenges experienced in the quarter.

1 Base earnings is a non-GAAP financial measure. Refer to the "Non-GAAP Financial Measures and Ratios" section of this document for additional details.

2 Base EPS and base return on equity are non-GAAP ratios. Refer to the "Non-GAAP Financial Measures and Ratios" section of this document for additional details.

3 Base return on equity and return on equity are calculated using the trailing four quarters of applicable earnings and common shareholders' equity.

Business Highlights

Performance against medium-term financial objectives in 2022

  • Lifeco’s annual base EPS4 of $3.455 declined 1.5% compared to 2021 (8.8% compound annual growth rate5 over the last five years) compared to 8%-10% per annum objective.  
  • Lifeco’s base return on equity4 for 2022 was 13.6% (13.1% average base return on equity over the last five years) compared to 14%-15% objective. 
  • Lifeco’s base dividend payout ratio4 in 2022 was 56.7% (58.3% average payout ratio over the last five years) compared to 45%-55% objective.

Key strategic transactions advanced in-quarter

  • The Company completed the integration of Massachusetts Mutual Life Insurance Company’s retirement business (MassMutual) as of December 31, 2022 and has achieved US$160 million of pre-tax run rate cost synergies in line with original expectations. Empower is on track to achieve run rate revenue synergies of US$30 million pre-tax in 2024 and revenue synergies are expected to continue to grow beyond 2024. Empower incurred restructuring and integration expenses of US$125 million pre-tax related to the MassMutual acquisition, US$116 million of which has been expensed, in line with original expectations.  
  • The Company completed the integration of Personal Capital Corporation (Personal Capital) as of December 31, 2022. To date, the Company incurred US$57 million of pre-tax restructuring and integration costs, US$43 million of which has been expensed, in line with original expectations.
  • Integration activities with respect to Prudential continue and the Company remains confident that customer retention and expense synergies are on track. As of December 31, 2022, annualized run rate cost synergies of US$43 million pre-tax have been achieved. Revenue synergies of US$20 million are expected on a run-rate basis by the end of 2024 and are expected to grow to US$50 million by 2026.

4 This metric is a non-GAAP ratio. Refer to the “Non-GAAP Financial Measures and Ratios” section of this document for additional details.

5 2017 base earnings were calculated by excluding items from net earnings as discussed in the “Non-GAAP Financial Measures and Ratios” section of this document. In addition, the Company excluded earnings related to the business transferred to Protective Life under an indemnity reinsurance agreement in 2019 to provide a more accurate comparison for the 5-year growth rate. 2017 base earnings were $2,244 million and base earnings per share was $2.269 compared to net earnings of $2,149 million and net earnings per share of $2.173. Items excluded from 2017 base earnings included a positive impact on actuarial assumption changes and management actions of $243 million, a negative impact on market-related impacts on liabilities of $3 million, restructuring and integration costs of $160 million, a net charge on business disposition of $122 million, a net charge on tax legislative impacts of $216 million and $163 million of earnings related to the business transferred to Protective Life in 2019.

Capital strength and financial flexibility maintained

  • The Company’s capital position remained strong at December 31, 2022, with a LICAT Ratio4, 6 of 120% for Canada Life, Lifeco’s major Canadian operating subsidiary, increasing by two points in the quarter due to the impact of earnings net of dividends and the ongoing phasing in of the LICAT interest rate scenario shift in North America as well as currency movements. The increase was partially offset by increased capital required to support business growth and the impact of interest rate movements.

Consolidated assets of $701 billion and assets under administration (AUA)7 of $2.5 trillion

  • Consolidated assets were $701 billion and AUA were $2.5 trillion as at December 31, 2022, an increase of 11% and 9%, respectively, from December 31, 2021.

Disciplined Choices that Enable Growth

Lifeco continues to focus on its core strategies of delivering financial security and wellness solutions through the workplace, providing advice-centered wealth management, delivering strong investment and asset management and leveraging risk and capital management expertise.

CANADA

  • Canada Life is gearing up to support the wellbeing of an additional 1.5 million Canadians covered by the Public Service Health Care Plan (PSHCP). The Company is building additional digital capabilities that will be leveraged by the rest of the Group Customer business to improve efficiency and customer service. For example, the Company has enriched plan member sites to allow earlier access; members can register and access their plan and coverage information even before they are fully eligible for their employment benefits.
  • Plan Member as Customers was rebranded as Freedom Experience. The Company is leveraging this brand by renaming several direct-to-consumer products distributed by Group Customer with the Freedom Experience brand. A dedicated team will be focused on distributing these products and bringing the Freedom Experience to Canadians.
  • Canada Life continues to modernize legacy technology platforms and expand its SimpleProtect digital app features and coverage to improve the advisor and customer experience. This follows the acquisitions of majority interest in two distribution firms earlier in 2022 to continue strengthening the Company’s distribution network.
  • During the fourth quarter of 2022, Canada Life accessed capabilities in Bangalore, India, for the processing of client claims. The expansion leverages existing Empower operations to drive efficiency and supports the Canadian benefits payment back office and resource complement, allowing the Company to process claims for Canadians nearly 24 hours a day, five days a week, to keep pace with customer expectations and deliver an improved experience.

UNITED STATES

In addition to the updates to the strategic transactions mentioned above:

  • At Empower, the integration efforts of MassMutual are substantially complete with customer asset and revenue retention rates of over 86%, ahead of original targets. The Company has achieved US$160 million of final pre-tax run rate cost synergies in line with original expectations.
  • Empower continues to build its retail business by leveraging Personal Capital capabilities to deliver hybrid digital advice and wealth management solutions to drive increased retail penetration, realizing impressive sales growth of 15% over the third quarter of 2022 despite market volatility.
  • Putnam sustained strong investment performance. As of December 31, 2022, approximately 73% and 78% of Putnam’s fund assets performed at levels above the Lipper median on a three-year and five-year basis, respectively. In addition, 43% and 66% of Putnam’s fund assets were in the Lipper top quartile on a three-year and five-year basis, respectively. Putnam has 40 funds currently rated 4 or 5 stars by Morningstar Ratings.
  • During 2022, Putnam made a series of product-related announcements to meet evolving market demand for sustainable investment options including five actively managed, transparent exchange traded funds (ETFs) which were launched in January 2023, the repositioning of Putnam’s RetirementReady Funds target-date series as the Putnam Sustainable Retirement Funds, and the launching of  two new transparent and actively managed equity ETFs, focused on business development companies and companies operating at the intersection of technology and biology.

6 The Life Insurance Capital Adequacy Test (LICAT) Ratio is based on the consolidated results of The Canada Life Assurance Company (Canada Life), Lifeco's major Canadian operating subsidiary. The LICAT Ratio is calculated in accordance with the Office of Superintendent of Financial Institutions (OSFI)' guideline - Life Insurance Capital Adequacy Test. Refer to the "Capital Management and Adequacy" section of the Company’s 2022 annual MD&A for additional details.

7 Assets under administration is a non-GAAP financial measure. Refer to the "Non-GAAP Financial Measures and Ratios" section of this document for additional details.

EUROPE

In Europe, the Company advanced its strategic transactions in Ireland, expanding its operational scale and offerings to clients.

  • In the second quarter of 2021, a 50:50 joint venture agreement was reached by Allied Irish Banks plc (AIB) and Canada Life Irish Holding Company Limited to form a new life assurance company. In December 2022, the joint venture agreement received authorization in principle from the Central Bank of Ireland.
  • In Q4 2022, Irish Life completed the portfolio transfer of Ark Life Assurance Company dac (Ark Life), which was integrated into Irish Life’s Retail division effective October 1, 2022. This follows the purchase of Ark Life on November 1, 2021 by Irish Life Group Limited. During the fourth quarter of 2022, Ark Life Assurance Company dac changed its legal name to Irish Life Ark Dublin dac.

CAPITAL AND RISK SOLUTIONS

  • The Capital and Risk Solutions segment continued to grow by providing tailored solutions to customers while increasing diversification within the portfolio. During 2022, the Capital and Risk Solutions segment expanded its international presence in targeted new markets, including Asia, while continuing to focus on core markets and product expansion in Europe and the U.S.

The Company intends to invest strategically, both organically and through acquisitions, to drive growth and productivity, while maintaining strong risk and expense discipline, to deliver sustainable long-term value to its customers and shareholders.

SEGMENTED OPERATING RESULTS

For reporting purposes, Lifeco’s consolidated operating results are grouped into five reportable segments – Canada, United States, Europe, Capital and Risk Solutions and Lifeco Corporate – reflecting the management and corporate structure of the Company. For more information, refer to the Company’s 2022 Annual Management’s Discussion and Analysis (MD&A).

CANADA

  • Q4 Canada segment base earnings of $295 million and net earnings of $380 million – Base earnings for the fourth quarter of 2022 were $295 million, down 7% compared to the fourth quarter of 2021, primarily due to lower fee income driven by lower assets, and less favourable individual insurance and investment related experience. These items were partially offset by changes in certain tax estimates and strong Group long-term disability results driven by effective claims management and disciplined pricing actions. Net earnings for the fourth quarter of 2022 were $380 million, up from $307 million in the fourth quarter of 2021, primarily due to an $84 million favourable impact resulting from an increase to the Canadian statutory income tax rate.

UNITED STATES

  • Q4 United States (U.S.) Financial Services base earnings of US$151 million ($206 million) and net earnings of US$138 million ($187 million) – U.S. Financial Services base earnings for the fourth quarter of 2022 were US$151 million ($206 million), up US$41 million or 37% from the fourth quarter of 2021. The increase was primarily due to base earnings of US$47 million related to the Prudential acquisition as well as higher contributions from investment experience. These items were partially offset by lower fee income driven by lower average equity markets and transaction volumes, as well as higher expenses driven by business growth.
  • Empower growth in AUA and participant accounts – Empower AUA increased 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 increases in AUA and participants compared to December 31, 2021 were primarily the result of the acquisition of Prudential.
  • Q4 Putnam net loss of US$20 million ($27 million) – Putnam’s net loss for the fourth quarter of 2022 was US$20 million ($27 million), compared to net earnings of US$35 million ($43 million) in the fourth quarter of 2021, primarily due to lower other assets under administration8 based fee income and the unfavourable impact of certain tax items. For Putnam, there were no differences between net earnings (loss) and base earnings (loss).

EUROPE

  • Q4 Europe segment base earnings of $239 million and net earnings of $287 million – Base earnings for the fourth quarter of 2022 were $239 million, up 12% compared to the fourth quarter of 2021. The increase was primarily due to favourable investment experience in the U.K. and Ireland as well as favourable longevity experience in the U.K. These items were partially offset by less favourable morbidity experience in Ireland, the unfavourable impact of currency movement, and the non-recurrence of changes to certain tax estimates in the U.K. in the prior year. Net earnings for the fourth quarter of 2022 were $287 million, up $48 million from the fourth quarter of 2021, primarily due to lower transaction costs, including contingent consideration provisions, related to acquisitions in Ireland and a net charge on business disposition in the prior year. These items were partially offset by lower contributions from actuarial assumption changes.

CAPITAL AND RISK SOLUTIONS

  • Q4 Capital and Risk Solutions segment base earnings of $187 million and net earnings of $211 million Base earnings for the fourth quarter of 2022 were $187 million, compared to $145 million in the fourth quarter of 2021, primarily due to strong new business growth, favourable longevity experience and improved claims experience on the U.S. life business. The increase was partially offset by the impact of currency movement. Net earnings for the fourth quarter of 2022 increased $78 million from the prior year, primarily due to higher contributions from insurance contract liability basis changes and a decrease in actuarial liabilities on a legacy block of business with investment performance guarantees.

The Company’s well-diversified businesses, combined with business strength, resilience and experience managing through market volatility, puts the Company in a strong position in the current environment to leverage opportunities for the future.

8 Refer to the "Glossary" section of the Company’s 2022 Annual Management’s Discussion and Analysis for additional details on the composition of this measure.

Update on Transition to IFRS 17 and IFRS 9

IFRS 17, Insurance Contracts (IFRS 17) has replaced IFRS 4, Insurance Contracts (IFRS 4) effective January 1, 2023. While the new standard will change the recognition and measurement of insurance contracts and the corresponding presentation and disclosures in the Company’s financial statements, it is not expected to have a material financial impact or to change the Company’s underlying business strategy. IFRS 9, Financial Instruments (IFRS 9) has replaced IAS 39, Financial Instruments: Recognition and Measurement effective January 1, 2023 and is not expected to lead to a material change in the level of invested assets. Upon adoption of IFRS 17 and IFRS 9, the Company expects an increase in net earnings volatility.

The Company will report under the new standards for the first time for the quarter ended March 31, 2023. The Company continues to evaluate the impact of the adoption of these standards. The expected impacts of the adoption of IFRS 17 include:

  • Businesses representing approximately 65% of base earnings9, 10 are expected to experience limited or no impact;
  • The January 1, 2022 shareholders’ equity is expected to decrease by approximately 12% on the adoption of IFRS 17 on January 1, 2023 in line with original expectations, primarily due to the establishment of the contractual service margin (CSM), partially offset by the removal of provisions no longer required under IFRS 17;
  • The CSM established for in-force contracts as at January 1, 2022 was $6.3 billion associated with the shareholders’ account and $2.3 billion associated with the participating account. This does not include the CSM on in-force segregated fund business which does not have a material impact on capital or opening equity;
  • Low-single digit percentage decrease in proforma base earnings9, 10 is expected as a result of transition with no material change to base earnings trajectory; however, increased volatility in net earnings is expected driven by the de-linking of asset and liability measurement. Actual differences between IFRS 4 and IFRS 17 results in any given period will vary depending on the composition of earnings drivers;
  • Medium-term financial objectives for base EPS growth11 and base dividend payout11 ratio remain unchanged;
  • Medium-term financial objective for base ROE11 has increased by 2% to 16-17% reflecting the change in shareholders’ equity; and
  • Financial strength will be maintained and a positive impact of approximately 10 points to the March 31, 2023 Canada Life consolidated LICAT Ratio is expected12 based on the 2023 LICAT Guideline and current market and economic conditions.

9 This is a non-GAAP financial measure. Refer to the "Non-GAAP Financial Measures and Ratios" section of this document for additional details.

10 Proforma base and net earnings are calculated based on the expected 2023 earnings mix and composition as at the start of 2023, including the reflection of insurance contract earnings on an IFRS 17 basis and adjusted to reflect fully synergized earnings from the acquisitions of MassMutual's and Prudential's retirement services businesses. Many of these estimates and assumptions are based on factors and events that are not within the control of the Company's management and there is no assurance that they will prove to be correct. Refer to "Cautionary Note regarding Forward-looking Information" and "Cautionary Note regarding Non-GAAP Financial Measures and Ratios" at the end of this document.

11 This metric is a non-GAAP ratio. Refer to the "Non-GAAP Financial Measures and Ratios" section of this document for additional details.

12 Actual impact will depend on market and economic conditions and the Company's operating results at the time of transition.

QUARTERLY DIVIDENDS

The Board of Directors approved a quarterly dividend of $0.5200 per share on the common shares of Lifeco, an increase of 6% payable March 31, 2023 to shareholders of record at the close of business March 3, 2023.

In addition, the Directors approved quarterly dividends on Lifeco's first preferred shares payable March 31, 2023 to shareholders of record at the close of business March 3, 2023, as follows:

First Preferred Shares

Amount, per share

Series G

$0.3250

Series H

$0.30313

Series I

$0.28125

Series L

$0.353125

Series M

$0.3625

Series N

$0.109313

Series P

$0.3375

Series Q

$0.321875

Series R

$0.3000

Series S

$0.328125

Series T

$0.321875

Series Y

$0.28125

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

Fourth Quarter Conference Call

Lifeco's fourth quarter conference call and audio webcast will be held February 9, 2023 at 3:30 p.m. (ET). The call and webcast can be accessed through greatwestlifeco.com/news-events/events or by phone at:

  • Participants in the Toronto area: 416-915-3239
  • Participants from North America: 1-800-319-4610

A replay of the call will be available until March 10, 2023 and can be accessed by calling 1-855-669-9658 or 604-674-8052 (passcode: 9514). The archived webcast will be available on greatwestlifeco.com.

Selected financial information is attached.

GREAT-WEST LIFECO INC.

Great-West Lifeco is an international financial services holding company with interests in life insurance, health insurance, retirement and investment services, asset management and reinsurance businesses. We operate in Canada, the United States and Europe under the brands Canada Life, Empower, Putnam Investments, and Irish Life. At the end of 2022, our companies had approximately 31,000 employees, 234,500 advisor relationships, and thousands of distribution partners – all serving over 38 million customer relationships across these regions. Great- West Lifeco trades on the Toronto Stock Exchange (TSX) under the ticker symbol GWO and is a member of the Power Corporation group of companies. To learn more, visit greatwestlifeco.com.

Basis of presentation

The annual consolidated financial statements of Lifeco have been prepared in accordance with International Financial Reporting Standards (IFRS) unless otherwise noted and are the basis for the figures presented in this release, unless otherwise noted.

Cautionary note regarding Forward-Looking Information

This release contains forward-looking information. Forward-looking information includes statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as "will", "may", "expects", "anticipates", "intends", "plans", "believes", "estimates", "objective", "target", "potential" and other similar expressions or negative versions thereof. Forward-looking information includes, without limitation, statements about the Company's operations, business (including business mix), financial condition, expected financial performance (including revenues, earnings or growth rates and medium-term financial objectives), ongoing business strategies or prospects, climate-related targets, anticipated global economic conditions and possible future actions by the Company, including statements made with respect to the expected cost (including deferred consideration), benefits, timing of integration activities and timing and extent of revenue and expense synergies of acquisitions and divestitures, including but not limited to the acquisitions of the full-service retirement business of Prudential, Personal Capital and the retirement services business of Massachusetts Mutual Life Insurance Company (MassMutual), expected capital management activities and use of capital, estimates of risk sensitivities affecting capital adequacy ratios, expected dividend levels, expected cost reductions and savings, expected expenditures or investments (including but not limited to investment in technology infrastructure and digital capabilities and solutions), the timing and completion of the joint venture between Allied Irish Banks plc (AIB) and Canada Life Irish Holding Company Limited, the impact of regulatory developments on the Company's business strategy and growth objectives, the expected impact of the ongoing pandemic health event resulting from the coronavirus (COVID-19) and related economic and market impacts on the Company's business operations, financial results and financial condition. Forward-looking information also includes, without limitation, statements about the expected impact (or lack of impact) of IFRS 17, Insurance Contracts and IFRS 9, Financial Instruments on the Company's business strategy, financial strength, deployable capital, Life Insurance Capital Adequacy Test (LICAT) ratio, base and net earnings, shareholders' equity, ratings and leverage ratios.

Forward-looking statements are based on expectations, forecasts, estimates, predictions, projections and conclusions 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, mutual fund and retirement solutions industries. They are not guarantees of future performance, and the reader is cautioned that actual events and results could differ materially from those expressed or implied by forward-looking statements. Many of these assumptions are based on factors and events that are not within the control of the Company and there is no assurance that they will prove to be correct. In particular, statements about the expected impact of IFRS 17 on the Company (including statements about the impact on base and net earnings and the Canada Life Assurance Company LICAT Ratio) are based on the Company’s expected 2023 earnings mix and composition as at the start of 2023, including the reflection of insurance contract earnings on an IFRS 17 basis and adjusted to reflect fully synergized earnings from the acquisitions of MassMutual and Prudential's retirement services businesses, and on current market and economic conditions. Further, the LICAT sensitivities presented in this MD&A have been prepared on the basis of IFRS 4, Insurance Contracts and IAS 39, Financial Instruments: Recognition and Measurement (IAS 39) and may change on transition to IFRS 17 and IFRS 9. In all cases, whether or not actual results differ from forward-looking information may depend on numerous factors, developments and assumptions, including, without limitation, the severity, magnitude and impact of the COVID-19 pandemic (including the effects of the COVID-19 pandemic and the effects of governments' and other businesses' responses to the COVID-19 pandemic on the economy and the Company's financial results, financial condition and operations), the duration of COVID-19 impacts and the availability and adoption of vaccines, the effectiveness of vaccines, the emergence of COVID-19 variants, geopolitical tensions and related economic impacts, assumptions around sales, fee rates, asset breakdowns, lapses, plan contributions, redemptions and market returns, the ability to integrate the acquisitions of Personal Capital and the retirement services businesses of MassMutual and Prudential, the ability to leverage Empower's, Personal Capital's and MassMutual's and Prudential's retirement services businesses and achieve anticipated synergies, customer behaviour (including customer response to new products), the Company's reputation, market prices for products provided, sales levels, premium income, fee income, expense levels, mortality experience, morbidity experience, policy and plan lapse rates, participant net contribution, reinsurance arrangements, liquidity requirements, capital requirements, credit ratings, taxes, inflation, interest and foreign exchange rates, investment values, hedging activities, global equity and capital markets (including continued access to equity and debt markets), industry sector and individual debt issuers' financial conditions (including developments and volatility arising from the COVID-19 pandemic, particularly in certain industries that may comprise part of the Company's investment portfolio), business competition, impairments of goodwill and other intangible assets, the Company's ability to execute strategic plans and changes to strategic plans, technological changes, breaches or failure of information systems and security (including cyber attacks), payments required under investment products, changes in local and international laws and regulations, changes in accounting policies and the effect of applying future accounting policy changes, changes in actuarial standards, unexpected judicial or regulatory proceedings, catastrophic events, continuity and availability of personnel and third party service providers, the Company's ability to complete strategic transactions and integrate acquisitions, unplanned material changes to the Company's facilities, customer and employee relations or credit arrangements, levels of administrative and operational efficiencies, changes in trade organizations, and other general economic, political and market factors in North America and internationally.  

The reader is cautioned that the foregoing list of assumptions and factors is not exhaustive, and there may be other factors listed in other filings with securities regulators, including factors set out in other filings with securities regulators, including factors set out in the Company's 2022 Annual MD&A under "Risk Management and Control Practices" and "Summary of Critical Accounting Estimates" and in the Company's annual information form dated February 8, 2023 under "Risk Factors", which, along with other filings, is available for review at www.sedar.com. The reader is also cautioned to consider these and other factors, uncertainties and potential events carefully and not to place undue reliance on forward-looking information.

Other than as specifically required by applicable law, the Company does not intend to update any forward-looking information whether as a result of new information, future events or otherwise.

Cautionary note regarding Non-GAAP Financial Measures and Ratios

This release contains some non-Generally Accepted Accounting Principles (GAAP) financial measures and non-GAAP ratios as defined in National Instrument 52-112 “Non-GAAP and Other Financial Measures Disclosure”. Terms by which non-GAAP financial measures are identified include, but are not limited to, "base earnings (loss)", "base earnings (loss) (US$)" and "assets under administration". Terms by which non-GAAP ratios are identified include, but are not limited to, “base earnings per common share (EPS)”, and “base return on equity (ROE)”. Non-GAAP financial measures and ratios are used to provide management and investors with additional measures of performance to help assess results where no comparable GAAP (IFRS) measure exists. However, non-GAAP financial measures and ratios do not have standard meanings prescribed by GAAP (IFRS) and are not directly comparable to similar measures used by other companies. Refer to the "Non-GAAP Financial Measures and Ratios" section in this release for the appropriate reconciliations of these non-GAAP financial measures to measures prescribed by GAAP as well as additional details on each measure and ratio.

 

For more information:

Media Relations
Liz Kulyk
204-926-5012
media.relations@canadalife.com

Investor Relations
Deirdre Neary
647-328-2134
deirdre.neary@canadalife.com