It has recently come to light that Canada Life had provided its European counterpart with substantial funding in an attempt to expand the latter’s finances in preparation for paying back borrowings.
The counterpart, Irish Life, received €200 million in cash earlier this year, according to company filings. The documents said that the funding was made in anticipation of the redemption of Irish Life’s subordinated debt, which has since been completed.
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In 2013, Irish Life was purchased by Great-West Lifeco (parent company of Canada Life) from the Irish government for €1.3 billion. Great-West then combined its Canada Life business with Irish Life. The European subsidiary generated €54 million in profit according to the group’s first quarter earnings this year, marking a 44% year-over-year increase,
The Sunday Times reported.
Great-West Lifeco said that the integration of the Irish business had resulted in €5 million of “annualized synergies” to date.
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