According to the results for the three months ending 30 June 2016, Canada Life reported a C$2.2bn (£1.3bn, $1.7bn, €1.5bn) or 52% increase in premiums and deposits compared to the same quarter of 2015, rising to C$6.1bn from C$4.1bn in June 2015.
Great-West Life said the increase was “primarily due to higher fund management sales in Ireland, higher sales of payout annuities in the UK and the impact of currency movement”.
For the six months ended 30 June, the life insurer – which accounts for the sale of insurance and annuities products across the UK, the Isle of Man and Germany – premiums and deposits rose by C$2.7bn to C$12bn compared to the same period last year.
The figure included the acquisition of Equitable Life in March last year which saw the company transfer its annuity portfolio to Canada Life for £875m in a bid to release capital for distribution to its long-suffering with-profits policy holders.
Corporation tax break
In the last three months, Canada Life also experienced sales growth of a whopping 63% to C$5.6bn in June 2016 from C$3.4bn in June 2015.
As a result, net earnings for the six months to 30 June increased year-on-year by C$28m to C$451m from C$423m in 2015.
Great-West Life said the boost in earnings came partially from lower income taxes including the “impact of UK corporate tax rate changes”.
In addition, the company added it has benefited from higher new business volumes in UK payout annuities and a “favourable mortality experience”, suggesting some policyholders had died sooner than expected.
