Restructuring will improve profit

Article Excerpt

GREAT-WEST LIFECO INC. $24 is still a hold. The company (Toronto symbol GWO; Conservative Growth and Income Portfolios, Finance sector; shares outstanding: 926.3 million; Market cap: $22.2 billion; Price-to-sales ratio: 0.6; Dividend yield: 7.2%; TSINetwork Rating: Above Average; www.greatwestlifeco.com) is Canada’s second-largest life insurer, after Manulife Financial. Power Corp. (Toronto symbol POW) owns 66.9% of the firm. The company also owns U.S.-based mutual fund provider Putnam Investments. Due to the COVID-19 pandemic, this business lost $31 million U.S. in the first quarter of 2020. That’s a big jump from its loss of $3 million U.S. a year earlier. That’s because Putnam’s net outflows worsened to $11.1 billion U.S. from $2.0 billion U.S. Great-West is now restructuring Putnam to improve its profitability, including job cuts and new investments in technology. However, it will take at least a year to roll out the plan. Great-West Lifeco is still a hold. hold…

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