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Great-West Lifeco Inc. reports 18% increase in earnings and 34% increase in premiums and deposits for the first quarter.

Winnipeg, April 27, 2000 ... Great-West Lifeco Inc. has reported net income attributable to common shareholders for the first quarter of 2000 of $141 million or $0.38 per share, up 18% from $119 million or $0.32 per share for 1999. Net income attributable to common shareholders before amortization of goodwill was $157 million. The return on common shareholders' equity was 17.5% for the twelve months ended March 31, 2000.

First Quarter Highlights
Financial

Total premiums and deposits up 34% reflecting significant increases in sales of investment related products, as well as increases in self-funded premium equivalents primarily related to recent U.S. business acquisitions.
Net income to common shareholders of $141 million for the first quarter of 2000 was up 18% from 1999.
Earnings per common share of $0.38 were up 18% from 1999.
Return on common shareholders equity was 17.5% for the twelve months ended March 31, 2000.
Quarterly dividends paid in first quarter were 24% higher than first quarter 1999. Dividends declared of $0.155 per common share for June 30, 2000.
Total assets under administration increased 8% to $90.3 billion.
Developments
In Canada
Great-West moved into two new markets with the launch of Sonata Health^TM, a benefit plan for individuals and families; and Oasis, a critical illness plan.
GWL Realty Advisors Inc., Great-West's real estate management subsidiary, completed its largest real estate acquisition to date on behalf of a client - over $800 million for seven properties. GWL Realty Advisors manages $4.2 billion in assets, making it the largest real estate investment advisor in Canada.
In the United States
Great-West Life & Annuity Insurance Company of Denver, Lifeco's U.S. subsidiary, completed the acquisition of Allmerica Financial Corporation's group life and health business. The acquisition is expected to add $1.2 billion of equivalent premium income and 300,000 medical members over the course of the year.
The Company's One Health Plan organizations, in collaboration with ProMedex Inc. of Raleigh, North Carolina, introduced CareResults on February 1st. With its introduction, One Health Plan is one of the first groups of health plans in the U.S. to launch a national full-scale, chronic health care management program that includes all members. ProMedex is the largest provider of disease-specific intervention programs in the U.S.
Great-West Lifeco's subsidiary, The Great-West Life Assurance Company, has reported that net income for the first quarter of 2000 reflects significant increases for both Canadian and United States operations, compared to 1999. Growth in fee income, strong investment performance and favourable morbidity experience in both Canada and the United States contributed to the increases, tempered by reduced reinsurance margins and unfavourable group mortality experience in the United States.

Performance by Country
Canadian Operations
Net income from Canadian operations, for the first quarter of 2000, attributable to common shareholders was $58 million, up from $45 million in 1999.
"We're pleased with the strong sales across all our product lines, and with the continued strong earnings growth in the first quarter," says Raymond L. McFeetors, President & Chief Executive Officer, Great-West Life.
The 45% increase in total premium income and deposits for the first quarter of 2000 compared to a year ago was made up of growth in premiums for life insurance, guaranteed annuities and insured health products of 3%, which was primarily attributable to the group insurance line of business. Reinsurance and specialty insurance premiums were up 22%, again reflecting the irregular nature of premiums in this line of business. Self-funded premium equivalents (ASO contracts) were up 6%. Individual segregated funds deposits increased 39% compared to a year ago, while the increase in group segregated funds deposits reflects large group case sales in the first quarter of 2000.
Fee income increased 31% in the first quarter of 2000 compared to 1999, mainly due to increases in segregated funds assets.
Total assets under administration increased $3.9 billion or 9% to $50.0 billion at March 31, 2000 when compared to a year ago. Segregated funds assets increased 32% to $17.7 billion and general funds assets decreased slightly, reflecting continuing consumer preference for segregated funds.
United States Operations
Net income from United States operations of Lifeco, for the first quarter of 2000, attributable to common shareholders was $83 million, up from $74 million for 1999.
"Through internal growth and acquisitions we have come to be a leader in both our health care and retirement businesses," says William T. McCallum, President & Chief Executive Officer, Great-West Life & Annuity (GWL&A). "The transactions in 1999 will increase the number of Americans enrolled in our health care program by over 50% and in our retirement programs by nearly 20%. Our focus on health and wealth clearly puts us in two high growth segments of the American economy."
The 25% increase in total premium income and deposits for the first quarter of 2000 compared to a year ago, was made up of growth in guaranteed product premium income of 16% and growth in self-funded premium equivalents (ASO contracts) of 59% due mostly to recent business acquisitions. Individual segregated funds deposits were up 38%, while group segregated funds were down 9% reflecting the fact that first quarter 1999 included significant large case activity that was not repeated in first quarter 2000.
The 33% increase in fee income for the first quarter of 2000 reflects growth related to recent business acquisitions.
Total assets under administration increased $2.9 billion to $40.3 billion at March 31, 2000 when compared to a year ago. Segregated funds assets increased 19% to $19.0 billion. The general funds assets decreased slightly, due to the change in U.S. exchange rates for the two periods.
Quarterly Dividends
At its meeting today, the Board of Directors approved a quarterly dividend of $0.155 per share on the common shares of the Company payable June 30, 2000 to shareholders of record at the close of business June 16, 2000.
In addition, the Directors approved quarterly dividends on the preferred shares of the Company
Series B First Preferred Shares $0.465625 per share;
Series C First Preferred Shares $0.484375 per share; and
Series D First Preferred Shares $0.293750 per share payable June 30, 2000 to shareholders of record at the close of business June 16, 2000
Class A, Series 1 Preferred Shares $0.3125 per share payable July 31, 2000 to shareholders of record at the close of business July 17, 2000.
Financial highlights, a summary of consolidated operations, segmented information and a consolidated balance sheet for the first quarter of 2000 are attached.
Great-West Lifeco
Great-West Lifeco Inc. is a financial services holding company with interests in the life insurance, health insurance, retirement savings, reinsurance and specialty general insurance businesses, primarily in Canada and the United States. Its subsidiary, The Great-West Life Assurance Company, serves the financial security needs of more than 13 million people through its Canadian operations and London Insurance Group in Canada, and through Great-West Life & Annuity Insurance Company in the United States. Great-West Lifeco is a member of the Power Financial Corporation group of companies.

GREAT-WEST LIFECO FINANCIAL HIGHLIGHTS (unaudited) (in millions of dollars, except per common share amounts) % 2000 1999 Change Canada U.S. Total Canada U.S. Total For the Three Months Ended March 31 Premiums: Life insurance, guaranteed annuities and insured health products $952 $781 $1,733 $926 $671 $1,597 9% Reinsurance and property and casualty 580 - 580 476 - 476 22% Self-funded premium equivalents (ASO contracts) (1) 270 1,727 1,997 254 1,085 1,339 49% Segregated funds deposits: (1) Individual products 630 115 745 453 84 537 39% Group products 864 846 1,710 169 929 1,098 56% Total premiums and deposits $3,296 $3,469 $6,765 $2,278 $2,769 $5,047 34% Fee and other income 85 309 394 65 233 298 32% Paid or credited to policy- holders 1,706 923 2,629 1,578 832 2,410 9% Net income attributable to: Preferred share- holders 7 - 7 9 - 9 -22% Common share- holders 58 83 141 45 74 119 18% Return on common shareholders' equity (12 months) 17.5% 15.9% Per Common Share Net earnings $0.38 $0.32 18% Dividends paid 0.155 0.125 24% Book value 8.81 8.21 7% At March 31 Total assets $32,268 $21,309 $53,577 $32,629 $21,465 $54,094 -1% Segregated funds assets (1) 17,729 18,963 36,692 13,436 15,902 29,338 25% Total assets under admini- stration $49,997 $40,272 $90,269 $46,065 $37,367 $83,432 8% Capital stock and surplus $3,826 $3,787 1% (1) Segregated funds deposits and self-funded premium equivalents (ASO contracts) The financial statements of a life insurance company do not include the assets, liabilities, deposits and withdrawals of segregated funds or the claims payments related to administrative services only (ASO) Group health contracts. However, the Company does earn fee and other income related to these contracts. Both segregated fund and ASO contracts are a growth aspect of the overall business of the Company and should be considered when comparing volumes, size and trends. GREAT-WEST LIFECO INC. SUMMARY OF CONSOLIDATED OPERATIONS (unaudited) (in millions of dollars except earnings per common share) for the three months ended March 31 2000 1999 Income Premium income $ 2,313 $ 2,073 Net investment income 884 888 Fee and other income 394 298 $ 3,591 $ 3,259 Benefits and Expenses Paid or credited to policyholders and beneficiaries including policyholder dividends and experience refunds 2,629 2,410 Commissions 165 150 Operating expenses 461 398 Premium taxes 29 28 Net operating income before income taxes 307 273 Income taxes - current 78 83 - future 36 11 Net income before minority and other interests 193 179 Minority and other interests of The Great-West Life Assurance Company and its subsidiaries Participating policyholders 19 25 Preferred shareholder dividends 9 9 Minority shareholders' interest 1 2 29 36 Net income before amortization of goodwill 164 143 Amortization of goodwill 16 15 Net income $ 148 $ 128 Earnings per common share $ 0.38 $ 0.32 Summary of Net Income Preferred shareholder dividends $ 7 $ 9 Net income - common shareholders 141 119 Net income $ 148 $ 128 Average number of shares outstanding 374,319,586 373,365,264 United States operating results during the first three months of 2000 have been included at the average market rate of $1.4534 Canadian compared with $1.5120 Canadian in 1999. GREAT-WEST LIFECO INC. SEGMENTED INFORMATION (unaudited) (Amounts in millions of dollars unless otherwise stated) Consolidated Operations Three months ended March 31, 2000 Canadian Operations Partici- pating Policy- Shareholders holders Individ- Individ- ual ual Insur- Insur- ance ance & Reinsur- & Invest- ance Invest- Group ment & ment Insur- Prod- Spe- Corpo- Prod- Total ance ucts cialty rate Total ucts Canada Income: Premium income $462 $173 $580 $ - $1,215 $317 $1,532 Net investment income 52 138 72 26 288 240 528 Fee and other income 14 68 1 2 85 - 85 Total income 528 379 653 28 1,588 557 2,145 Benefits and Expenses: Paid or credited to policy- holders 408 218 622 2 1,250 456 1,706 Other 92 102 13 2 209 62 271 Net operating income before income taxes 28 59 18 24 129 39 168 Income taxes 11 22 (2) 8 39 25 64 Net income before minority and other interests 17 37 20 16 90 14 104 Minority and other interests of The Great- West Life Assurance Company and its subsidiaries Participating policy- holders - - - - - 15 15 Preferred shareholder dividends - - - 8 8 - 8 Minority shareholders' interest - - 2 - 2 (1) 1 - - 2 8 10 14 24 Net income before goodwill amortization 17 37 18 8 80 - 80 Amortization of goodwill 6 7 2 - 15 - 15 Net income $11 $30 $16 $8 $65 $ - $65 Summary of Net Income Preferred shareholder dividends $ - $ - $ - $7 $7 $ - $7 Net income - common share- holders 11 30 16 1 58 - 58 Net income $11 $30 $16 $8 $65 $ - $65 Three months ended March 31, 2000 United States Operations Partici- pating Policy- Shareholders holders Employ- ee Finan- Finan- Bene- cial Corpo- cial Total Total fits Services rate Total Services U.S. Company Income: Premium income $464 $233 $ - $697 $84 $781 $2,313 Net investment income 33 196 13 242 114 356 884 Fee and other income 266 43 - 309 - 309 394 Total income 763 472 13 1,248 198 1,446 3,591 Benefits and Expenses: Paid or credited to policy- holders 381 356 (1) 736 187 923 2,629 Other 325 52 3 380 4 384 655 Net operating income before income taxes 57 64 11 132 7 139 307 Income taxes 19 21 7 47 3 50 114 Net income before minority and other interests 38 43 4 85 4 89 193 Minority and other interests of The Great- West Life Assurance Company and its subsidiaries Participating policy- holders - - - - 4 4 19 Preferred shareholder dividends - - 1 1 - 1 9 Minority shareholders' interest - - - - - - 1 - - 1 1 4 5 29 Net income before goodwill amortization 38 43 3 84 - 84 164 Amortization of goodwill 1 - - 1 - 1 16 Net income $37 $43 $3 $83 $ - $83 $148 Summary of Net Income Preferred shareholder dividends $ - $ - $ - $ - $ - $ - $7 Net income - common share- holders 37 43 3 83 - 83 141 Net income $37 $43 $3 $83 $ - $83 $148 Three months ended March 31, 1999 Canadian Operations Partici- pating Policy- Shareholders holders Individ- Individ- ual ual Insur- Insur- ance ance & Reinsur- & Invest- ance Invest- Group ment & ment Insur- Prod- Spe- Corpo- Prod- Total ance ucts cialty rate Total ucts Canada Income: Premium income $432 $171 $484 $ - $1,087 $315 $1,402 Net investment income 50 152 81 18 301 225 526 Fee and other income 10 52 1 2 65 - 65 Total income 492 375 566 20 1,453 540 1,993 Benefits and Expenses: Paid or credited to policy- holders 394 231 522 4 1,151 427 1,578 Other 87 96 17 1 201 63 264 Net operating income before income taxes 11 48 27 15 101 50 151 Income taxes 4 18 3 (4) 21 30 51 Net income before minority and other interests 7 30 24 19 80 20 100 Minority and other interests of The Great- West Life Assurance Company and its subsidiaries Participating policy- holders - - - - - 22 22 Preferred shareholder dividends - - - 7 7 - 7 Minority shareholders' interest - - 3 1 4 (2) 2 - - 3 8 11 20 31 Net income before goodwill amortization 7 30 21 11 69 - 69 Amortization of goodwill 6 7 2 - 15 - 15 Net income $1 $23 $19 $11 $54 $ - $54 Summary of Net Income Preferred shareholder dividends $ - $ - $ - $9 $9 $ - $9 Net income - common share- holders 1 23 19 2 45 - 45 Net income $1 $23 $19 $11 $54 $ - $54 Three months ended March 31, 1999 United States Operations Partici- pating Policy- Shareholders holders Employ- ee Finan- Finan- Bene- cial Corpo- cial Total Total fits Services rate Total Services U.S. Company Income: Premium income $416 $174 $ - $590 $81 $671 $2,073 Net investment income 33 206 18 257 105 362 888 Fee and other income 202 31 - 233 - 233 298 Total income 651 411 18 1,080 186 1,266 3,259 Benefits and Expenses: Paid or credited to policy- holders 326 320 13 659 173 832 2,410 Other 261 44 - 305 7 312 576 Net operating income before income taxes 64 47 5 116 6 122 273 Income taxes 22 16 2 40 3 43 94 Net income before minority and other interests 42 31 3 76 3 79 179 Minority and other interests of The Great- West Life Assurance Company and its subsidiaries Participating policy- holders - - - - 3 3 25 Preferred shareholder dividends - - 2 2 - 2 9 Minority shareholders' interest - - - - - - 2 - - 2 2 3 5 36 Net income before goodwill amortization 42 31 1 74 - 74 143 Amortization of goodwill - - - - - - 15 Net income $42 $31 $1 $74 $ - $74 $128 Summary of Net Income Preferred shareholder dividends $ - $ - $ - $ - $ - $ - $ 9 Net income - common share- holders 42 31 1 74 - 74 119 Net income $42 $31 $1 $74 $ - $74 $128 GREAT-WEST LIFECO INC. CONSOLIDATED BALANCE SHEET (unaudited) March 31 (in millions of dollars) 2000 1999 Assets Bonds $ 29,935 $ 30,660 Mortgage loans 8,867 9,651 Stocks 1,118 777 Real estate 1,119 1,062 Loans to policyholders 5,199 5,134 Cash and certificates of deposit 841 887 Funds withheld by ceding insurers 2,518 2,128 Premiums in course of collection 694 435 Interest due and accrued 613 713 Future income taxes 155 183 Goodwill 1,719 1,670 Other assets 799 794 Total assets $ 53,577 $ 54,094 Liabilities Policy liabilities Actuarial liabilities $ 40,151 $ 40,640 Provision for claims 944 785 Provision for policyholders' dividends 325 317 Provision for experience rating refunds 327 494 Policyholders' funds 1,908 1,918 43,655 44,154 Commercial paper and other loans 862 527 Current income taxes 273 195 Other liabilities 1,712 1,826 Repurchase agreements - 104 Net deferred gains on portfolio investments sold 1,102 1,393 47,604 48,199 Minority and other interests 2,147 2,108 Capital Stock and Surplus Capital stock 2,090 2,244 Surplus 1,586 1,316 Provision for unrealized gain on translation of net investment in foreign operations 150 227 3,826 3,787 Liabilities, capital stock and surplus $ 53,577 $ 54,094 United States assets and liabilities at March 31 have been translated at the market rates of $1.4534 Canadian for 2000 and $1.5100 Canadian for 1999.

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