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Net investment income and other includes interest and dividends earned on cash and cash equivalents, securities and mortgage loans. It also includes gains and losses on the sale of securities, Investors Group’s share of earnings of Great-West Lifeco Inc. (GWL), as well as income related to mortgage banking activities. Investors Group measures net investment income as the difference between investment income and interest expense. Interest expense includes interest on deposit liabilities, certificates and debt incurred to finance its investment in GWL.
Net investment income and other totalled $126.4 million in 2005, an increase of $3.1 million or 2.5% from $123.3 million in 2004 due to increases in gains on the sale of securities and increases in Investors Group’s share of GWL’s earnings offset in part by a decrease in revenues related to mortgage banking activities. Increases in other income included the recovery of prior years’ commodity taxes paid and a reduction in provisions established for the exit of certain activities.
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