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MarketScreener Homepage  >  Equities  >  Toronto Stock Exchange  >  Great-West Lifeco Inc.    GWO   CA39138C1068

GREAT-WEST LIFECO INC.

(GWO)
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REFILE-PREVIEW-Canadian insurers set for double-digit drop in quarterly profits amid COVID-19

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07/30/2020 | 06:00am EDT
The Sun Life Financial logo is seen at their corporate headquarters in Toronto

TORONTO, July 30 (Reuters) - Canadian life insurers are set to see double-digit earnings decreases in the second quarter as the pandemic-induced economic slowdown ushered in decade-low interest rates and weighed on sales.

Analysts predict declines in underlying earnings per share of between 10% and 14% from a year earlier for the four major life insurers -- Manulife Financial, Sun Life Financial , Great-West Lifeco and IA Financial.

"Insurance companies keep a very large reserve of cash, and when interest rates are as low as they are... it obviously hurts them," said Allan Small, senior investment adviser at Allan Small Financial Group with HollisWealth.

The year-on-year declines are set to be the most since the first quarter of 2012, according to analysts.

IA Financial will report results on Thursday, followed by Great-West, Manulife and Sun Life on Aug. 4, 5 and 6 respectively.

Canaccord Genuity analyst Scott Chan wrote in a note that the industry is buffeted by lower interest rates, higher credit losses from corporate downgrades and the energy sector, resulting in a 14% year-on-year profit drop, despite strong wealth management performance.

Despite the headwinds, second-quarter profits are likely to be an improvement on the prior three months, of about 1%, Barclays analyst John Aiken said, helped by improved equity markets. Canaccord also expects a 1% profit increase from the prior quarter, and CIBC Capital Markets a 4.6% gain.

Canadian insurers could follow some of their U.S. counterparts, including Aflac Inc and Principal Financial in beating estimates, said Brian Madden, portfolio manager at Goodreid Investment Counsel, which holds Manulife shares.

But wealth management strength is "not likely to be enough to offset weak sales in the group insurance and group retirement segments," Madden, who expects earnings declines in the high-single-digits from a year ago, said. "When you're having bankruptcies and layoffs, and you're not adding a lot of employees, you're not buying a lot of new... plans." (Reporting By Nichola Saminather Editing by Alistair Bell)

Stocks mentioned in the article
ChangeLast1st jan.
AFLAC INCORPORATED 0.85% 38.07 Delayed Quote.-28.03%
BARCLAYS PLC 1.04% 109.2 Delayed Quote.-39.21%
CANACCORD GENUITY GROUP INC. -2.53% 7.7 Delayed Quote.63.22%
GREAT-WEST LIFECO INC. 0.19% 27.06 Delayed Quote.-18.79%
IA FINANCIAL CORPORATION INC End-of-day quote.
MANULIFE FINANCIAL CORPORATION -0.65% 19.98 Delayed Quote.-22.04%
SUN LIFE FINANCIAL INC. 0.34% 56.71 Delayed Quote.-4.54%
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Toute l'actualité sur GREAT-WEST LIFECO INC.
08/12GREAT WEST LIFECO : completes offering of US$500 million of senior notes
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08/10GREAT WEST LIFECO : announces pricing of US$500 million senior notes offering
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08/06Sun Life earnings beat estimates on fewer U.S. health claims, investment impa..
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08/05GREAT WEST LIFECO : net earnings rise to $863 million amid sale of subsidiary
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08/04GREAT WEST LIFECO : annonce un bénéfice fondamental de 706 M$ pour le deuxième t..
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08/04GREAT WEST LIFECO : reports second quarter 2020 base earnings of $706 million up..
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08/04GREAT WEST LIFECO : to sell Canadian subsidiary for $175 million to Mackenzie
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08/04GREAT WEST LIFECO : annonce la vente proposée de GLC Groupe de gestion d'actifs ..
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08/04GREAT WEST LIFECO : announces proposed sale of GLC Asset Management Group Ltd. t..
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07/30Canadian insurers set for double-digit quarterly profit drop amid COVID-19
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Financials
Sales 2020 113 B 85 252 M 85 252 M
Net income 2020 2 545 M 1 918 M 1 918 M
Net Debt 2020 - - -
P/E ratio 2020 10,5x
Yield 2020 6,47%
Capitalization 25 103 M 18 940 M 18 919 M
Capi. / Sales 2020 0,22x
Capi. / Sales 2021 0,21x
Nbr of Employees 24 000
Free-Float 26,0%
Chart GREAT-WEST LIFECO INC.
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Technical analysis trends GREAT-WEST LIFECO INC.
Short TermMid-TermLong Term
TrendsBullishNeutralNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 12
Average target price 27,04 CAD
Last Close Price 27,06 CAD
Spread / Highest target 18,3%
Spread / Average Target -0,07%
Spread / Lowest Target -7,61%
EPS Revisions
Managers
NameTitle
Paul Anthony Mahon Co-President, Chief Executive Officer & Director
Jeffrey Macoun Co-President & Chief Operating Officer
Robert Jeffrey Orr Chairman
Garry MacNicholas Chief Financial Officer & Executive Vice President
Philip Armstrong Global Chief Information Officer & Executive VP
Sector and Competitors
1st jan.Capitalization (M$)
GREAT-WEST LIFECO INC.-18.79%19 229
AXA-29.63%49 819
PRUDENTIAL PLC-12.49%43 109
METLIFE, INC.-22.62%35 798
MANULIFE FINANCIAL CORPORATION-22.04%30 174
PRUDENTIAL FINANCIAL, INC.-25.82%27 440