This earnings news release for |
TSX : GWO
- Base earnings of
$971 million , or$1.04 per share, up 9% from Q4 2022. - Full year base earnings of
$3.7 billion , up 11% over 2022; Empower surpasses$1 billion base earnings. - Net earnings from continuing operations of
$743 million or$0.80 per share, up 55% over Q4 2022. - Full year net earnings from continuing operations of
$2.9 billion . - Company strategically repositioned for future growth.
"Our continued strong performance is supported by a solid foundation of diversified businesses and the disciplined actions we've taken to reposition our portfolio," said Paul Mahon, President and CEO,
"This quarter also marks a transition of senior leadership as we welcome
In-Quarter | Year-to-Date | ||||
Q4 2023 | Q3 2023 | Q4 2022 | 2023 | 2022 | |
Base earnings1,4 | |||||
Net earnings from continuing operations | |||||
Net earnings | |||||
Base EPS2,4 | |||||
Net EPS from continuing operations | |||||
Net EPS | |||||
Base ROE2,3,4 | 16.6 % | 16.4 % | |||
Net ROE3 | 12.4 % | 11.2 % |
1 | This 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 IFRS 17 earnings and common shareholders' equity. |
4 | Comparative base earnings results are restated to exclude discontinued operations related to |
Record base earnings5 of
Net earnings from continuing operations of
Highlights
- The Company's focused strategy, disciplined execution and trusted brands are driving strong performance and value creation for shareholders:
- 2023 base earnings reached
$3.7 billion , up 11% from 2022; Q4 2023 marked back-to-back quarters with record base EPS. Empower surpassed$1 billion base earnings, exceeding the objective announced at the beginning of 2023. - Delivering on our Medium-Term Financial Objectives
- 11% base EPS6 CAGR over 5 years;
- 16% base ROE6 average over 2 years; and
- 56% base earnings average dividend payout ratio6 over 5 years.
- Book value per share7 of
$24.26 , up 4% year over year. - Canada Life named top 3 most valuable brand in
Canada by Brand Finance.
- 2023 base earnings reached
- Actions to reposition and improve capital efficiency are supporting the Company's near and long-term growth:
- Sale of
Putnam Investments toFranklin Templeton onJanuary 1, 2024 , unlocks value and furthers Lifeco's strategy of building and extending strategic partnerships with best-in-class asset managers to support clients' retirement, group benefits, and personal wealth management needs. - The integration of Prudential's full-service retirement services business has to date achieved above target client retention and
US$80 million of pre-tax run rate cost synergies. The integration remains on track to deliver the remaining expected synergies and be completed in 2024 as planned. - Completed the acquisition of
Investment Planning Counsel (IPC), which along with the acquisition of Value Partners is supporting our goal of becoming a leading destination for entrepreneurial advisors and their clients. Together, at the end of 2023, we had over 16,000 advisor relationships and more than$100 billion in assets under administration5. - The Company undertook several strategic actions to help strengthen its market positions in
Europe , improve capital efficiency, and enhance the outlook for 2024, including:- Completing the sale of a portfolio of existing policies to AIB Life;
- Closed new business for sub-scale
U.K. onshore wealth business; and - Reinsured an existing block of annuity business in the
U.K. at attractive terms.
- The Company's leverage ratio decreased to 30% from 33% after the repayment of
$500 million in short-term debt related to the Prudential acquisition and a maturing €500 million bond that was prefunded in late 2022.
- Sale of
__________________________________________________________ | |
5 | This is a non-GAAP financial measure. Refer to the "Non-GAAP Financial Measures and Ratios" section of this document for additional details. |
6 | This is a non-GAAP ratio. Refer to the "Non-GAAP Financial Measures and Ratios" section of this document for additional details. |
7 | Additional information regarding this measure has been incorporated by reference and can be found in the Glossary section of our 2023 Annual MD&A. |
- There is strong momentum across all three of the Company's value drivers:
Wealth & Asset Management
$30 billion in net inflows7 across Wealth and Workplace retirement businesses.- Empower Personal Wealth, launched in the first quarter of 2023, continued its strong growth with
$18 billion total sales7 in 2023 (up 13% YoY), and ended Q4 2023 with an AUA8 of$72 billion , up 31% from Q4 2022.
Workplace Solutions
- Workplace businesses continue to deliver strong earnings and growth:
- Group Life & Health book premium7 up 22% year over year in
Canada , and up 14% year over year inEurope . - Empower's
U.S. defined contribution retirement services business continues to grow faster than its peers and has now reachedUS$1.5 trillion in AUA8 (up 17% YoY). Net inflows7 in 2023 wereUS$11 billion .
- Group Life & Health book premium7 up 22% year over year in
Insurance & Risk Solutions
- Consistent performance supports earnings growth and diversification of the Company:
- Capital and Risk Solutions base earnings grew by 30% compared to Q4 2022 including favourable claims experience on prior years' property and catastrophe losses. The quarter also showed solid momentum in new business sales and growth in structured reinsurance business.
- Growth of contractual service margin (CSM) in
Europe as a result of strong sales ofU.K. individual annuities and bulk annuities and favourable assumption changes.
For reporting purposes, Lifeco's consolidated operating results are grouped into five reportable segments –
In-Quarter | Year-to-Date | ||||
Q4 2023 | Q3 2023 | Q4 2022 | 2023 | 2022 | |
Segment base earnings8 | |||||
261 | 262 | 215 | 1,006 | 737 | |
213 | 206 | 256 | 777 | 845 | |
Capital and Risk Solutions | 236 | 198 | 181 | 794 | 598 |
Lifeco Corporate | (40) | (12) | (18) | (68) | (26) |
Total base earnings8 | |||||
Segment net earnings from continuing operations | |||||
194 | 244 | 168 | 769 | 464 | |
217 | 25 | (25) | 384 | 1,202 | |
Capital and Risk Solutions | 215 | 265 | 3 | 833 | 542 |
Lifeco Corporate | (49) | (12) | (20) | (85) | (11) |
Total net earnings from continuing operations | |||||
Net earnings from discontinued operations10 | (3) | (31) | (26) | (124) | (32) |
Total net earnings |
8 | This is a non-GAAP financial measure. Refer to the "Non-GAAP Financial Measures and Ratios" section of this document for additional details. |
9 | Comparative results are restated to exclude discontinued operations related to |
10 | Includes divestiture costs in 2023 related to the sale of |
- Q4
Canada segment base earnings of$301 million and net earnings of$166 million – Base earnings of$301 million increased by$41 million compared to the same quarter last year. The increase reflects strong group disability results and higher earnings on surplus. These items were partially offset by unfavourable individual insurance mortality experience and favourable tax impacts in 2022 that did not repeat.
- Q4
United States segment base earnings ofUS$193 million ($261 million ) and net earnings from continuing operations ofUS$142 million ($194 million ) – Base earnings ofUS$193 million increased byUS$33 million or 21% from the fourth quarter of 2022. The increase was primarily due to increased fees and spread income resulting from organic business growth and higher average equity markets, partially offset by credit-related impairments of commercial mortgage loans.
- Q4
Europe segment base earnings of$213 million and net earnings of$217 million – Base earnings of$213 million decreased by$43 million compared to the same quarter last year, primarily due to lower investment earnings as the fourth quarter of 2022 included a significant gain from trading activity that did not re-occur. This was partially offset by favourable group protection experience and the impact of currency movement.
CAPITAL AND RISK SOLUTIONS
Q4 Capital and Risk Solutions segment base earnings of$236 million and net earnings of$215 million – Base earnings of$236 million increased by$55 million compared to the same quarter last year, primarily due to growth in the structured business and net positive insurance experience from favourable claim developments on prior years' property catastrophe losses. These items were partially offset by unfavourable experience in theU.S. life business and on certain structured transactions.
QUARTERLY DIVIDENDS
The Board of Directors approved a quarterly dividend of
In addition, the Directors approved quarterly dividends on Lifeco's preferred shares, as follows:
First Preferred Shares | Amount, per share |
Series G | |
Series H | |
Series I | |
Series L | |
Series M | |
Series N | |
Series P | |
Series Q | |
Series R | |
Series S | |
Series T | |
Series Y |
For purposes of the Income Tax Act (
Fourth Quarter Conference Call
Lifeco's fourth quarter conference call and audio webcast will be held on
- 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
Selected financial information is attached.
Basis of presentation
The condensed consolidated annual audited financial statements for the periods ended
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 and its operations, business (including business mix), financial condition, expected financial performance (including revenues, earnings or growth rates, medium-term financial objectives and base earnings objectives for the Empower business), strategies and prospects, climate-related and diversity-related measures, objectives, goals, ambitions and commitments, expected costs and benefits of acquisitions and divestitures (including timing of integration activities and timing and extent of revenue and expense synergies), expected expenditures or investments (including but not limited to investment in technology infrastructure and digital capabilities and solutions and investments in strategic partnerships), value creation and realization of growth opportunities, expected dividend levels, expected cost reductions and savings, expected capital management activities and use of capital, estimates of risk sensitivities affecting capital adequacy ratios, anticipated global economic conditions, the timing and completion of the proposed sale of Canada Life
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 arriving at our preliminary assessment of the Company's potential exposure to Pillar Two income taxes and our expectation regarding the impact on our effective income tax rate and base earnings, management has relied on its interpretation of the relevant legislation.
It has also assumed a starting point of its current mix of business and base earnings growth consistent with management's base earnings objectives disclosed in the Company's 2023 Annual MD&A. 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 ability to integrate and leverage acquisitions and achieve anticipated benefits and synergies, the achievement of expense synergies and client retention targets from the acquisition of the Prudential retirement business, the Company's ability to execute strategic plans and adapt or recalibrate these plans as needed, the Company's reputation, business competition, assumptions around sales, pricing, fee rates, customer behaviour (including contributions, redemptions, withdrawals and lapse rates), mortality and morbidity experience, expense levels, reinsurance arrangements, global equity and capital markets (including continued access to equity and debt markets and credit instruments on economically feasible terms), geopolitical tensions and related economic impacts, interest and foreign exchange rates, inflation levels, liquidity requirements, investment values and asset breakdowns, hedging activities, financial condition of industry sectors and individual issuers that comprise part of the Company's investment portfolio, credit ratings, taxes, impairments of goodwill and other intangible assets, technological changes, breaches or failure of information systems and security (including cyber attacks), assumptions around third-party suppliers, 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, unplanned material changes to the Company's facilities, customer and employee relations, levels of administrative and operational efficiencies, and other general economic, political and market factors in
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 the Company's 2023 Annual MD&A under "Risk Management and Control Practices" and "Summary of Critical Accounting Estimates" and in the Company's annual information form dated
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$)", "base earnings: insurance service result", "base earnings: net investment result", "assets under management" and "assets under administration". Terms by which non-GAAP ratios are identified include, but are not limited to, "base earnings per common share (EPS)", "base return on equity (ROE)", "base dividend payout ratio" and "effective income tax rate – base earnings – common shareholders". 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.
FINANCIAL HIGHLIGHTS (unaudited)
(in Canadian $ millions, except per share amounts)
Selected consolidated financial information | ||||||
As at or for the three months ended | For the twelve months ended | |||||
(in Canadian $ millions, except per share amounts) | 2023 | 2023 | 2022 (Restated) | 2023 | 2022 (Restated) | |
Base earnings1,5 | $ 971 | $ 950 | $ 894 | $ 3,667 | $ 3,318 | |
Net earnings from continuing operations3 | 743 | 936 | 478 | 2,862 | 3,628 | |
Net earnings - common shareholders | 740 | 905 | 452 | 2,738 | 3,596 | |
Per common share | ||||||
Basic: | ||||||
Base earnings2,5 | 1.04 | 1.02 | 0.96 | 3.94 | 3.56 | |
Net earnings from continuing operations | 0.80 | 1.01 | 0.51 | 3.07 | 3.89 | |
Net earnings | 0.79 | 0.97 | 0.48 | 2.94 | 3.86 | |
Dividends paid | 0.52 | 0.52 | 0.49 | 2.08 | 1.96 | |
Book value3 | 24.26 | 24.01 | 23.28 | |||
Base return on equity2,5 | 16.6 % | 16.4 % | 15.8 % | |||
Return on equity - continuing operations3 | 12.4 % | 11.2 % | 17.2 % | |||
Base dividend payout ratio2,5 | 50.0 % | 51.0 % | 51.0 % | |||
Dividend payout ratio3 | 65.6 % | 53.5 % | 102.1 % | |||
Financial leverage ratio4 | 30 % | 31 % | 33 % | |||
Total assets per financial statements | $ 713,230 | $ 680,010 | $ 672,206 | |||
Total assets under management1,8 | 1,095,374 | 1,032,857 | 1,003,940 | |||
Total assets under administration1,8 | 2,852,540 | 2,628,364 | 2,468,463 | |||
Total contractual service margin (net of reinsurance held) | $ 12,635 | $ 13,054 | $ 13,123 | |||
Total equity | $ 29,851 | $ 29,529 | $ 28,795 | |||
128 % | 128 % | |||||
130 % |
1 | This metric is a non-GAAP financial measure. Refer to the "Non-GAAP Financial Measures and Ratios" section of this document for additional details. |
2 | This metric is a non-GAAP ratio. Refer to the "Non-GAAP Financial Measures and Ratios" section of this document for additional details. |
3 | Refer to the "Glossary" section of the Company's 2023 Annual MD&A for additional details on the composition of this measure. |
4 | The calculation for financial leverage ratio includes the after-tax non-participating contractual service margin (CSM) balance in the denominator, other than CSM associated with segregated fund guarantees. This reflects that the CSM represents future profit and is considered available capital under LICAT. These ratios are estimates based on available data. |
5 | Comparative results are restated to exclude net earnings (losses) from discontinued operations related to |
6 | The Life Insurance Capital Adequacy Test (LICAT) Ratio is based on the consolidated results of |
7 | Proforma estimates of |
8 | At |
BASE AND
Consolidated base earnings and net earnings of Lifeco include the base earnings and net earnings of Canada Life (and its operating subsidiaries), Empower and
With the adoption of IFRS 17, the Company refined the definition of base earnings (loss) in the first quarter of 2023 with application to 2022 comparative results for an updated representation of the Company's underlying business performance, as well as to enhance consistency and comparability with financial services industry peers.
For a further description of base earnings, refer to the "Non-GAAP Financial Measures and Ratios" section of this document and the Company's 2023 Annual Management's Discussion and Analysis.
Base earnings1 and net earnings - common shareholders by segment | ||||||
For the three months ended | For the twelve months ended | |||||
2023 | 2023 | 2022 (Restated) | 2023 | 2022 (Restated) | ||
Base earnings (loss)1,4 | ||||||
$ 301 | $ 296 | $ 260 | $ 1,158 | $ 1,164 | ||
261 | 262 | 215 | 1,006 | 737 | ||
213 | 206 | 256 | 777 | 845 | ||
Capital and Risk Solutions | 236 | 198 | 181 | 794 | 598 | |
Lifeco Corporate | (40) | (12) | (18) | (68) | (26) | |
Lifeco base earnings1,4 | $ 971 | $ 950 | $ 894 | $ 3,667 | $ 3,318 | |
Items excluded from base earnings | ||||||
Market experience relative to expectations2 | $ (213) | $ 153 | $ (386) | $ (307) | $ 530 | |
Realized OCI gains / (losses) from asset rebalancing | — | — | — | (121) | — | |
Assumption changes and management actions2,5 | 83 | (106) | (5) | (20) | 47 | |
Other non-market related impacts3,5 | (98) | (61) | (25) | (357) | (267) | |
Items excluded from Lifeco base earnings | $ (228) | $ (14) | $ (416) | $ (805) | $ 310 | |
Net earnings (loss) from continuing operations2 | ||||||
$ 166 | $ 414 | $ 352 | $ 961 | $ 1,431 | ||
194 | 244 | 168 | 769 | 464 | ||
217 | 25 | (25) | 384 | 1,202 | ||
Capital and Risk Solutions | 215 | 265 | 3 | 833 | 542 | |
Lifeco Corporate | (49) | (12) | (20) | (85) | (11) | |
Lifeco net earnings from continuing operations2 | $ 743 | $ 936 | $ 478 | $ 2,862 | $ 3,628 | |
Net earnings (loss) from discontinued operations4 | (3) | (31) | (26) | (124) | (32) | |
Lifeco net earnings - common shareholders | $ 740 | $ 905 | $ 452 | $ 2,738 | $ 3,596 |
1 | This metric is a non-GAAP financial measure. Refer to the "Non-GAAP Financial Measures and Ratios" section of this document for additional details. |
2 | Refer to the "Glossary" section of the Company's 2023 Annual MD&A for additional details on the composition of this measure. |
3 | Included in other non-market related impacts are business transformation impacts (including restructuring and integration costs as well as acquisition and divestiture costs), amortization of acquisition-related intangible assets and tax legislative changes impacts. |
4 | Comparative results are restated to exclude discontinued operations related to |
5 | Following internal reviews, the mapping of certain assumption changes and management actions and business transformation impacts has been modified to reflect current presentation and comparative results for the periods ended |
NON-GAAP FINANCIAL MEASURES AND RATIOS
Non-GAAP Financial Measures
The Company uses several non-GAAP financial measures to measure overall performance of the Company and to assess each of its business units. A financial measure is considered a non-GAAP measure for Canadian securities law purposes if it is presented other than in accordance with generally accepted accounting principles (GAAP) used for the Company's consolidated financial statements. The consolidated financial statements of the Company have been prepared in compliance with IFRS as issued by the IASB. Non-GAAP financial measures do not have a standardized meaning under GAAP and may not be comparable to similar financial measures presented by other issuers. Investors may find these financial measures useful in understanding how management views the underlying business performance of the Company.
Base earnings (loss)
Base earnings (loss) reflect management's view of the underlying business performance of the Company and provides an alternate measure to understand the underlying business performance compared to IFRS net earnings.
Base earnings (loss) exclude the following items from IFRS reported net earnings:
- Market-related impacts, where actual market returns in the current period are different than longer-term expected returns;
- Assumption changes and management actions that impact the measurement of assets and liabilities;
- Business transformation impacts which include acquisition and divestiture costs and restructuring and integration costs;
- Material legal settlements, material impairment charges related to goodwill and intangible assets, impacts of income tax rate changes and other tax impairments, net gains, losses or costs related to the disposition or acquisition of a business; net earnings (loss) from discontinued operations; and
- Other items that, when removed, assist in explaining the Company's underlying business performance.
The definition of base earnings (loss) has been refined (in 2023 and applied to 2022 comparative results) to also exclude the following impacts that are included in IFRS reported net earnings for an improved representation of the Company's underlying business performance, as well as for consistency and comparability with financial services industry peers:
- Realized gains (losses) on the sale of assets measured at fair value through other comprehensive income (FVOCI);
- The direct equity and interest rate impacts on the measurement of surplus assets and liabilities; and
- Amortization of acquisition related finite life intangible assets.
Lifeco | ||||||
For the three months ended | For the twelve months ended | |||||
|
|
|
|
| ||
Base earnings | $ 971 | $ 950 | $ 894 | $ 3,667 | $ 3,318 | |
Items excluded from Lifeco base earnings | ||||||
Market experience relative to expectations (pre-tax) | $ (351) | $ 191 | $ (393) | $ (461) | $ 851 | |
Income tax (expense) benefit | 138 | (38) | 7 | 154 | (321) | |
Realized OCI gains / (losses) from asset rebalancing (pre-tax) | — | — | — | (158) | — | |
Income tax (expense) benefit | — | — | — | 37 | — | |
Assumption changes and management actions (pre-tax)1 | (28) | (125) | (21) | (149) | 39 | |
Income tax (expense) benefit1 | 111 | 19 | 16 | 129 | 8 | |
Business transformation impacts (pre-tax)1,2,3 | (137) | (33) | (73) | (340) | (271) | |
Income tax (expense) benefit1,2,3 | 70 | 8 | 12 | 118 | 67 | |
Amortization of acquisition-related finite life intangibles (pre-tax)2 | (42) | (48) | (36) | (182) | (167) | |
Income tax (expense) benefit2 | 11 | 12 | 9 | 47 | 41 | |
Tax legislative changes impact (pre-tax)2 | — | — | — | — | — | |
Income tax (expense) benefit2 | — | — | 63 | — | 63 | |
Total pre-tax items excluded from base earnings3 | $ (558) | $ (15) | $ (523) | $ (1,290) | $ 452 | |
Impact of items excluded from base earnings on income taxes3 | 330 | 1 | 107 | 485 | (142) | |
Net earnings from continuing operations | $ 743 | $ 936 | $ 478 | $ 2,862 | $ 3,628 | |
Net earnings (loss) from discontinued operations (post-tax)2 | (3) | (31) | (26) | (124) | (32) | |
Net earnings - common shareholders | $ 740 | $ 905 | $ 452 | $ 2,738 | $ 3,596 |
1 | Following internal reviews, the mapping of certain assumption changes and management actions and business transformation impacts has been modified to reflect current presentation and comparative results for the periods ended |
2 | Included in other non-market related impacts. |
3 | Comparative results are restated to reclassify divestiture costs related to the sale of |
For the three months ended | For the twelve months ended | |||||
2023 | 2023 | 2022 (Restated) | 2023 | 2022 (Restated) | ||
Base earnings | $ 301 | $ 296 | $ 260 | $ 1,158 | $ 1,164 | |
Items excluded from base earnings | ||||||
Market experience relative to expectations (pre-tax) | $ (162) | $ 204 | $ 78 | $ (197) | $ 241 | |
Income tax (expense) benefit | 48 | (57) | (17) | 58 | (105) | |
Assumption changes and management actions (pre-tax) | (22) | (34) | (37) | (52) | 85 | |
Income tax (expense) benefit | 5 | 10 | 10 | 14 | 2 | |
Business transformation impacts (pre-tax)1 | (5) | (1) | — | (9) | — | |
Income tax (expense) benefit1 | 2 | — | — | 3 | — | |
Amortization of acquisition-related finite life intangibles (pre-tax)1 | (2) | (6) | (7) | (20) | (26) | |
Income tax (expense) benefit1 | 1 | 2 | 2 | 6 | 7 | |
Tax legislative changes impact (pre-tax)1 | — | — | — | — | — | |
Income tax (expense) benefit1 | — | — | 63 | — | 63 | |
Net earnings - common shareholders | $ 166 | $ 414 | $ 352 | $ 961 | $ 1,431 |
1 | Included in other non-market related impacts. |
For the three months ended | For the twelve months ended | |||||
2023 | 2023 | 2022 (Restated) |
|
| ||
Base earnings | $ 261 | $ 262 | $ 215 | $ 1,006 | $ 737 | |
Items excluded from base earnings | ||||||
Market experience relative to expectations (pre-tax) | $ (13) | $ 27 | $ — | $ 5 | $ (25) | |
Income tax (expense) benefit | 4 | (5) | — | (1) | 3 | |
Business transformation impacts (pre-tax)1,2 | (52) | (18) | (43) | (191) | (226) | |
Income tax (expense) benefit1,2 | 20 | 5 | 11 | 54 | 66 | |
Amortization of acquisition-related finite life intangibles (pre-tax)1 | (35) | (36) | (21) | (140) | (122) | |
Income tax (expense) benefit1 | 9 | 9 | 6 | 36 | 31 | |
Net earnings from continuing operations | $ 194 | $ 244 | $ 168 | $ 769 | $ 464 | |
Net earnings (loss) from discontinued operations (post-tax)2 | (3) | (31) | (26) | (124) | (32) | |
Net earnings - common shareholders | $ 191 | $ 213 | $ 142 | $ 645 | $ 432 |
1 | Included in other non-market related impacts. |
2 | Comparative results of are restated to reclassify divestiture costs related to the sale of |
For the three months ended | For the twelve months ended | |||||
2023 | 2023 | 2022 (Restated) | 2023 | 2022 (Restated) | ||
Base earnings | $ 213 | $ 206 | $ 256 | $ 777 | $ 845 | |
Items excluded from base earnings | ||||||
Market experience relative to expectations (pre-tax) | $ (114) | $ (152) | $ (268) | $ (321) | $ 560 | |
Income tax (expense) benefit | 54 | 24 | 6 | 78 | (128) | |
Realized OCI gains / (losses) from asset rebalancing (pre-tax) | — | — | — | (158) | — | |
Income tax (expense) benefit | — | — | — | 37 | — | |
Assumption changes and management actions (pre-tax)1 | (6) | (45) | 11 | (46) | (16) | |
Income tax (expense) benefit1 | 106 | 8 | 6 | 113 | 1 | |
Business transformation impacts (pre-tax)1,2 | (80) | (14) | (30) | (140) | (45) | |
Income tax (expense) benefit1,2 | 48 | 3 | 1 | 61 | 1 | |
Amortization of acquisition-related finite life intangibles (pre-tax)2 | (5) | (6) | (8) | (22) | (19) | |
Income tax (expense) benefit2 | 1 | 1 | 1 | 5 | 3 | |
Net earnings (loss) - common shareholders | $ 217 | $ 25 | $ (25) | $ 384 | $ 1,202 |
1 | Following internal reviews, the mapping of certain assumption changes and management actions and business transformation impacts has been modified to reflect current presentation and comparative results for the periods ended |
2 | Included in other non-market related impacts. |
Capital and Risk Solutions | ||||||
For the three months ended | For the twelve months ended | |||||
2023 | 2023 | 2022 (Restated) | 2023 | 2022 (Restated) | ||
Base earnings | $ 236 | $ 198 | $ 181 | $ 794 | $ 598 | |
Items excluded from base earnings | ||||||
Market experience relative to expectations (pre-tax) | $ (50) | $ 112 | $ (201) | $ 75 | $ 54 | |
Income tax (expense) benefit | 29 | — | 18 | 13 | (85) | |
Assumption changes and management actions (pre-tax) | — | (46) | 5 | (51) | (30) | |
Income tax (expense) benefit | — | 1 | — | 2 | 5 | |
Net earnings - common shareholders | $ 215 | $ 265 | $ 3 | $ 833 | $ 542 |
Lifeco Corporate | ||||||
For the three months ended | For the twelve months ended | |||||
2023 | 2023 | 2022 (Restated) | 2023 | 2022 (Restated) | ||
Base earnings (loss) | $ (40) | $ (12) | $ (18) | $ (68) | $ (26) | |
Items excluded from base earnings (loss) | ||||||
Market experience relative to expectations (pre-tax) | $ (12) | $ — | $ (2) | $ (23) | $ 21 | |
Income tax (expense) benefit | 3 | — | — | 6 | (6) | |
Net earnings (loss) - common shareholders | $ (49) | $ (12) | $ (20) | $ (85) | $ (11) |
Assets under management (AUM) and assets under administration (AUA)
Assets under management and assets under administration are non-GAAP measures that provide an indicator of the size and volume of the Company's overall business. Administrative services are an important aspect of the overall business of the Company and should be considered when comparing volumes, size and trends.
Total assets under administration includes total assets per financial statements, proprietary mutual funds and institutional assets and other assets under administration.
Lifeco | |||
|
| 2022 (Restated) | |
Total assets per financial statements1 | $ 713,230 | $ 680,010 | $ 672,206 |
Continuing operations - other AUM | 220,578 | 199,821 | 182,288 |
Discontinued operations - other AUM | 161,566 | 153,026 | 149,446 |
Total AUM1 | $ 1,095,374 | $ 1,032,857 | $ 1,003,940 |
Other AUA | 1,757,166 | 1,595,507 | 1,464,523 |
Total AUA1 | $ 2,852,540 | $ 2,628,364 | $ 2,468,463 |
1 | Figures include assets held for sale and other AUM related to the discontinued operations of |
NON-GAAP RATIOS
A non-GAAP ratio is a financial measure in the form of a ratio, fraction, percentage or similar representation that is not disclosed in the financial statements of the Company and has a non-GAAP financial measure as one or more of its components. These financial measures do not have a standardized definition under IFRS and might not be comparable to similar financial measures disclosed by other issuers.
The non-GAAP ratios disclosed by the Company each use base earnings (loss) as the non-GAAP component. Base earnings (loss) reflect management's view of the underlying business performance of the Company and provides an alternate measure to understand the underlying business performance compared to IFRS net earnings.
- Base dividend payout ratio - Dividends paid to common shareholders are divided by base earnings (loss).
- Base earnings per share - Base earnings (loss) for the period is divided by the number of average common shares outstanding for the period.
- Base return on equity - Base earnings (loss) for the trailing four quarters are divided by the average common shareholders' equity over the trailing four quarters. This measure provides an indicator of business unit profitability.
SOURCE
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