The Strength and Stability of Great-West Lifeco

Posted on July 16, 2009 and updated August 9, 2010 in Life Insurance Canada News 2 min read
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Great-West Lifeco is an international financial services holding company that deals in life insurance, health insurance, retirement savings, investment management and re-insurance. Their operations are divided into Great-West Life, London Life, and Canada Life. They have a combined $333 billion in assets under management.

While everyone else is suffering financially this year, Great-West Life just announced that they’re remaining strong and stable despite a decline in earnings. Great-West Lifeco reports a first quarter net income of $208 million, compared to $249 in the first quarter of 2008.

Despite this small loss, they were still able to garner a return to their shareholders of 16.2% for the 12 months ending March 31, 2009 and bring their quarterly common divdend to $0.3075/share, (5% higher than last year) putting them among the top performers of the Canadian financial sector.

Great-West Lifeco’s balance sheet is one of the strongest in the industry, with a high-quality bond portfolio that’s 99% rated investment-grade.Their subsidiary, Great-West Life, reported a Minimum Continuing Capital and Surplus Requirements (MCCSR) ratio of 205% as of March 31, 2009.

During the first four months of 2009, four major credit agencies (A.M. Best, Moody’s Investor Service, Standard and Poor’s Ratings Services and Fitch Ratings) re-affirmed Lifeco’s credit rating with a stable outlook, despite the current economic outlook.

You can view their most up-to-date ratings on their public websites, including Great-West Lifeco’s website.

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