Great-West Lifeco Inc.’s net earnings fell slightly from the previous year as its assets under management grew to more than $675 billion.
The company’s profits for the quarter ended March 31 were $591 million, down from $620 million in the same quarter a year earlier. Great-West said in its quarterly earnings on Thursday it had restructuring costs of $28 million in the quarter, mostly related its health and retail businesses in Ireland and the completion of integration activities for its Empower Retirement division.
The company said last month it would cut about 1,500 positions, or 13% of its Canadian workforce, over the next two years in response to changing technology and customer expectations.
On Thursday, Great-West said that, as part of this transformation, “a new strategic customer marketing function has been created to provide a more holistic customer experience through digital and innovative capabilities and services.” The company said it expects to incur a $215 million restructuring cost in Q2, reducing net earnings by $127 million.
AUM at the end of the quarter was $675.8 billion, up from $628.2 billion a year earlier. Consolidated assets under administration were about $1.3 trillion.
“First quarter earnings reflect strong sales in our Canadian and European businesses and the benefits of cost reduction initiatives in the U.S.,” Paul Mahon, chief executive, said in a statement.
“While underlying business fundamentals were positive in the quarter, earnings were impacted by currency headwinds and restructuring charges related to business integration activities and right-sizing of our cost base. We remain focused on advancing our business strategies by balancing efficiency gains with necessary investments in future growth across the Company,” he said.
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