Canada Life premiums see huge spike

Canada Life’s second-quarter premiums were up more than 50% annually, in large part because of a surge in the sale of funds has reported a huge surge in premiums over the second quarter.What’s driving those numbers?

Canada Life’s second-quarter premiums were up by more than 50% year-over-year, according to an International Advisor report. The surge came primarily from an increase in the sale of funds.

Canada Life reported a $2.2 billion – or 52% – increase in premiums and deposits for the second quarter this year over Q2 of 2015, International Adviser reported. Great-West Life, Canada Life’s parent company, 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.”

In the first half of the year, Canada Life – which sells insurance and annuities products across the UK, the Isle of Man and Germany – saw premiums and deposits rise by $2.7 billion compared to the same time-frame last year, International Adviser reported.

In the last three months, Canada Life saw sales growth of 63% to $5.6 billion in June – a significant rise from $3.4 billion in June of 2015. Consequently, the company saw net earnings for the first half of the year increase year-over-year by $28 million, to $451 million from $423 million for the same period in 2015.

Great-West Life said the earnings boost also came in part from lower income taxes and corporate tax rate changes in the UK, International Adviser reported.

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