Q4 - Power Corporation of Canada

MANAGEMENT’S DISCUSSION AND ANALYSISGREAT-WEST LIFECO INC.INSURANCE & ANNUITIES (CONT’D)PRODUCTS AND SERVICESWealth Management Payout annuities, including enhanced annuities Pensions, including guaranteed deferred annuity Savings Variable annuity GMWB productsGroup Insurance Life insurance Income protection (disability) Critical illnessIndividual Insurance Life insurance Disability Critical illnessDISTRIBUTIONU.K. and Isle of Man IFAs Private banks Employee benefit consultantsIreland Independent brokers Direct sales forceGermany Independent brokers Multi-tied agentsREINSURANCEMarket Position Among the top ten life reinsurers in the U.S. by assumed business Niche positions in property and casualty and annuity businessPRODUCTS AND SERVICESLife Yearly renewable term Co-insurance Modified co-insurance Capital Relief SolutionsProperty & Casualty Catastrophe retrocessionAnnuity Payout annuity Fixed annuityDISTRIBUTIONIndependent reinsurance brokersDirect placementsCOMPETITIVE CONDITIONSUnited Kingdom and Isle of ManIn the United Kingdom, the Company holds strong positions inseveral markets with particular strength in the payout annuity,offshore savings, group life and income protection markets. TheCompany has strong market positions in each of group risk (morethan 20% of market share), payout annuities (6% market share anda top five provider in the IFAs market) and wealth managementwhere, both onshore and offshore, Canada Life is a top five unitlinkedsingle premium bond provider in the U.K. The Companyremains competitive in the payout annuity market and continuesto sell the majority of its products through IFAs. In order tocompete with products of other companies also used by theseIFAs, the Company must maintain competitive product design,pricing, and service levels.IrelandCanada Life is the seventh largest life insurance operation inIreland as measured by new business market share. The Companyoperates in all segments of the market with a focus on highermargin products. The Company continues to demonstrateits focus on the development of innovative products anddistribution capability.Due to ongoing challenging economic conditions the marketcontinued to see depressed new business levels, with aggressivepricing for available business resulting in larger companiesmaintaining a significant share. In addition, with limited newmoney being invested by consumers, much of the market’s newbusiness is funds being switched from one product providerto another.GermanyCanada Life has established a leading position among providersof unit-linked products to the German independent intermediarymarket. This market remains competitive as more companiesmove in due to the projected strong growth over the coming years.Throughout this period of increased competition, the Companyhas maintained a top two position in this market throughcontinuous product, technology and service improvements.Despite positive economic growth in 2012 within the life andpensions market, consumers continued their reluctance to investin long-term pension products, in particular, equity based andunit-linked products due to market volatility.ReinsuranceIn the U.S. life reinsurance market, the demand for capital reliefsolutions eased in 2012 from recent years because of the recoveryof the financial markets and increased competition from the reentryof banks into that market. Lower life insurance sales sincethe onset of the financial crisis and higher retention by clientshave led to reduced volumes of traditional life reinsurance. TheCompany’s financial strength and ability to offer both capitalsolutions and traditional mortality reinsurance continues to be acompetitive advantage.62 Great-West Lifeco Inc. Annual Report 2012C 58POWER CORPORATION OF CANADA