For the first quarter of 2022, Great-West Lifeco posted favourable results with net earnings of $770 million and base earnings of $809 million – a 9% year-over-year improvement from the same period in 2021.

When broken down per region, the company’s Q1 Canada segment base earnings were $272 million, and its net earnings were $275 million. Great-West Lifeco ‘s Q1 US financial services base earnings stood at US$106 million with net earnings at US$94 million. Meanwhile, its Q1 Europe segment base earnings hit $245 million while net earnings reached $219 million.

Great-West Lifeco also noted that during the first quarter, its major subsidiary Canada Life was rated the fourth most valued brand in Canada by Brand Finance – the first insurance company to make it into the list’s top five spots.

According to Great-West Lifeco president and CEO Paul Mahon, the results are impressive despite the quarter’s many challenges.

“The start of 2022 has been marked by tragic human dislocation and loss as a result of the senseless invasion of Ukraine,” he said. “Our hearts go out to those impacted by these events. Despite the challenging macroeconomic backdrop, we are very pleased with our results this quarter that are in line with our medium-term objectives, and reflect the strength, resiliency and diversification in our business.”

Mahon added that Great-West Lifeco is pleased with the progress of its value creation priorities and that the integration of its acquired businesses remains on track – particularly the launch of personal capital capabilities into the Empower platform thanks to its acquisition of Prudential Financial’s full-service retirement services in the US.

For Q1 2022, Great-West Lifeco’s consolidated assets stood at approximately $600 billion, while its assets under administration were about $2.2 trillion as of March 31, 2022 – these represent a decrease of 5% and 4%, respectively, from December 31, 2021. The company noted that Q1 2022 was marked by higher interest rates, generally downward trending movements for the equity market, and the strengthening of the Canadian dollar.

Great-West Lifeco’s capital position during the first quarter of 2022 managed to stay strong, with a LICAT Ratio for Canada Life (its major Canadian subsidiary) at 119%. It did note, however, that the LICAT Ratio reduced by five points in the quarter due to the material increase in interest rates during the same period.