The company's success in integrating acquisitions in Canada and the United States is reflected in two key performance measures:

• Great-West Lifeco's return on equity was 17.5% for the 12 months ended March 31, 2000. Lifeco has consistently earned a rate of return on equity which would rank in the top tier of all financial services companies.
• Great-West's Minimum Continuing Capital and Surplus Requirements ratio increased to 210% -- a very solid level for the industry. As well, Lifeco's subsidiaries continue to receive superior ratings from the major rating agencies.

  Canadian Operations
  "Diversified companies like Great-West will be among the winners in Canada's evolving financial services landscape," Raymond McFeetors, President and CEO of Great-West's Canadian Operations told the meeting.

  McFeetors said that Great-West -- a stock company since its founding over 100 years ago -- has always focused on delivering value to policyholders and shareholders.

  "Now, together with London Life, we enjoy leading market share in each of our core businesses: group and individual insurance, segregated funds, disability insurance, reinsurance and specialty insurance."

  McFeetors said the integration of Great-West and London Life's individual product development, administration and service, and group insurance operations is compete, and has allowed both companies to significantly reduce operating expenses.

  "The quality of our earnings improved in 1999 as a result of the integration," McFeetors said. "Our companies have been the lowest net cost providers of participating insurance for more than 25 years. Integrating the two companies' operations allows us to strengthen this position."

  McFeetors said consolidation will continue in Canada's insurance industry, and he affirmed that Great-West will look at acquisition opportunities over the next three to five years. He said Great-West is reviewing strategies for meeting the needs of affluent clients, and will be announcing new products for the wealth management market in the months ahead.

  United States Operations
  Great-West will also continue expansion in the United States, through its wholly-owned subsidiary, Great-West Life & Annuity Insurance Company. The company signed two agreements in 1999 that significantly expanded its market position.

  "These acquisitions complement Great-West Life & Annuity's market focus, and along with our subsidiary, Alta Health & Life Insurance Company, make Great-West Life & Annuity one of the largest managed care companies in the United States," President & CEO William T. McCallum told the annual meeting in Winnipeg.

  The first purchase was of the group life and health business of Allmerica Financial Corporation. Over the next year this is expected to add approximately $1.2 billion of equivalent premium income and 300,000 medical members to Great-West Life & Annuity's business.

  The second acquisition was the group health and related products business of General American Life Insurance Company. This business adds $2.5 billion of premium and equivalent premium and over 900,000 medical members.

  "Together, these acquisitions will boost by over 50%, the number of Americans enrolled in health care programs managed by Great-West Life & Annuity," McCallum said.

  Great-West Life & Annuity is a leader in providing employee benefits for small to mid-sized corporations and in meeting the retirement income needs of employees in the public/non-profit sector. The company serves more than 3.7 million Americans through a full range of managed health care, life and disability insurance, and defined contribution plans marketed through brokers and group representatives, and through marketing agreements with other financial institutions.

  At the meeting it was announced that Orest T. Dackow, President and Chief Executive Officer of Great-West Lifeco, has elected to retire following a distinguished 41-year career with Great-West. Appointed as Co-Presidents and Chief Executive Officers of Great-West Lifeco are Raymond L. McFeetors, President and CEO of The Great-West Life Assurance Company, and William T. McCallum, President and CEO of the U.S. subsidiary, Great-West Life & Annuity Insurance Company.

  Founded in Winnipeg in 1891, Great-West Life is a leading life and health insurer in the Canadian market. The company offers a range of life insurance, disability insurance, group insurance and retirement savings and investments for individuals, families, businesses and organizations across Canada. The company markets its products in Canada through a network of Great-West and London Life representatives, and through brokers and marketing agreements with other financial institutions. Great-West and its subsidiaries are members of the Power Financial Corporation group of companies.

  1999 Financial Highlights for Great-West Life

• Total assets under administration grew 5% to nearly $87 billion. Asset growth was fueled by a 19% increase in segregated fund assets.
• Net income attributable to common shareholders grew 22% over 1998, to $231.28 per share, reflecting increases in earnings from Great-West's Canadian and United States operations.
• Great-West's return on equity was 17.4%, a strong return for the financial services industry.
• Premiums and deposits grew 1% over 1998. Premium revenue from fee-based products grew 8%, reflecting the company's successful expansion in the segregated funds market and in the U.S. ASO market. Fee-based products accounted for 57% of premium revenue in 1999, up from 53% in 1998.
• Fee and other income grew 22% over 1998, again reflecting the company's performance in the segregated funds and ASO markets.
• Subsidiaries - Great-West's financial results include the results of London Life and Great-West Life & Annuity Insurance Company.
• Ownership structure - Great-West is owned by Great-West Lifeco Inc., which purchased the 0.4% minority interest in Great-West during the year and now holds 100% of Great-West's common shares.