Great-West Lifeco Inc. expects to record charges in its fourth-quarter 2017 financial results related to recently enacted U.S. tax reform, and an agreement to sell a U.S. equity investment and increase its interest in PanAgora Asset Management Inc.
The company expects to take a charge of C$216 million, or 22 Canadian cents per share, due to tax reform. The charge reflects the revaluation of certain deferred tax balances and the impact on insurance contract liabilities and expense provisions.
Great-West also expects the proposed sale of an equity investment in Nissay Asset Management Corp., a subsidiary of Nippon Life Insurance Co., to result in a charge of C$122 million or 12 cents per share.
Under the agreement, Great-West will sell its investment in Nissay to Nippon Life and simultaneously acquire Nippon Life's minority stake in PanAgora, a majority-owned subsidiary of Putnam. The disposal of the Nissay shares will result in a gain offset by a noncash write-off of an associated indefinite life intangible asset established when Great-West acquired Putnam in 2007.
