Canada Life Reinsurance, a provider of reinsurance solutions for life and health, recorded solid earnings of $210 million for the third quarter of 2024, accounting for 20% of Canada Life Assurance Company’s total earnings for the period.
For the quarter, Canada Life Assurance Company’s base earnings hit a record $1.06 billion, up 12% on the prior year’s $950 million.
The company attributes the growth to continued pre-tax growth and higher earnings on surplus from all segments, as well as net fee and spread income growth from higher equity markets and the addition of Investment Planning Counsel (IPC) and Value Partners, higher investment earnings, and also favourable experience in the U.S. life reinsurance business.
Canada Life Re had another solid quarter with earnings of $210 million, which follows base earnings growth of 14% in H1 2024.
Jeff Poulin, CEO Canada Life Re, commented: “The Canada Life Assurance Company’s Q3 results underscore solid progress and exhibit strong earnings from all our divisions which highlights the benefit of diversification. This is our 5th consecutive quarter of record base earnings. We delivered revenue above the midpoint of our target, and we are well-positioned to end Q4 on the same note.
“Within Canada Life Re, our earnings were solid at 210M which is 20% of Canada Life’s total earnings. I want to thank all of our clients for our strong partnership together! We continue to build momentum in all our lines of business, reflecting the terrific efforts from our teams at Canada Life Re who are dedicated to being the best, and fulfilling our motto: One Team, Unlimited Solutions.”
Group-wide, Canada Life’s net earnings from continuing operations fell year-on-year from $936 million to $859 million, driven by less favourable impacts of relative interest rate movements, including spread movements, and more unfavourable fair value impacts of assumption changes and management actions partially offset by higher base earnings.
