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Successful Inv refreshes Great-West Lifeco buy

2015-09-03 21:14 ET - In the News

The Successful Investor, in its September, 2015, issue, refreshes its buy of Great-West Lifeco Inc., recently $35. The Investor said buy 24 times from May, 1999, to July, 2015, at prices ranging from $16 to $50 (the stock split 2 for 1 on Oct. 4, 2004). Assuming an investment of $1,000 for each of the 24 buys, the $24,000 position would now be worth $37,730. At June 30, 2015, the insurance company had $1.15-trillion of assets under administration up from $1.06-trillion at the end of 2014. In July, 2013, Great-West paid $1.75-billion for Irish Life, Ireland's largest pension manager and life insurance provider. The company now continues to expand in Ireland. In July, 2015, it acquired the Irish operations of Legal & General Group PLC for an undisclosed sum. This latest purchase will give Great-West more opportunities to cut costs by merging overlapping operations. With its integration of Irish Life recently completed, the company now expects annual savings of 48 million euros. Great-West's earnings should improve to $2.79 a share in 2015, giving a low price-to-earnings ratio of 12.5. The $1.30 annual dividend is a 3.7-per-cent yield. The stock remains a buy.

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