Canada’s life insurers have reported mixed results in the fourth quarter and for 2014.
Industrial Alliance Insurance and Financial Services posted net income of $112.4 million, up 23% over the previous year.
For the 12-month period, net income attributed to common shareholders was $400.4 million, a year‑over‑year increase of 14%.
“Q4 was definitely a strong ending to the year. In terms of business growth, the highlights were the pickup in individual Insurance sales and the continued improvement in seg funds, which together make up more than half of our net income,” says Yvon Charest, president and CEO. “Policyholder experience improved quarter over quarter, particularly in individual insurance.”
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Great-West Lifeco posted net earnings of $657 million, compared with $717 million a year ago. However, in the fourth quarter of 2013, net earnings included a litigation recovery of $226 million after tax. Excluding the litigation recovery in 2013, the year-over-year growth in earnings was 34%.
For the 12 months ending Dec. 31, 2014, the company’s net earnings were $2.55 billion, compared with $2.3 billion in 2013.
Total assets under administration grew to approximately $1.1 trillion at Dec. 31, 2014, up 40% from Dec. 31, 2013.
This includes $207 billion of assets under administration related to the J.P. Morgan Retirement Plan Services large-market recordkeeping business, which was acquired in the third quarter of 2014 and reflects strong organic growth in all geographies.
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Manulife’s fourth quarter net earnings dropped by more than half to $640 million.
However, core earnings, increased to $713 million from $685 million in the same period last year.
For the full year, Manulife reported a net profit of $3.5 billion compared with $3.13 billion in 2013.
“In the fourth quarter, we continued the very strong momentum in life insurance sales and delivered record assets under management,” says president and CEO Donald Guloien. “But core earnings, due to a variety of experience factors, were below our plan. Also, the macro environment, including low interest rates, produces headwinds for 2015.”
Assets under management rose to a record $691 billion at the end of 2014, an increase of $92 billion.
Read: Manulife completes Standard Life acquisition
Sun Life’s fourth quarter net income fell to $502 million, compared with $571 million in the same period last year.
For the full year, the insurer earned $1.76 billion, compared with $1.7 billion in 2013.
“Our Canadian operations delivered strong sales results in the fourth quarter, with insurance sales up 78% and wealth sales up 64%, compared to the previous year,” says president and CEO Dean Connor. “Earnings growth was negatively impacted by market factors, policyholder experience and group benefits morbidity.”
Assets under management rose 15% in 2014 to $734 billion.
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