|
Great-West Lifeco Inc. reports increased 1999 results and announces
an increase in common share dividends.
Winnipeg, February 2, 2000 ...Great-West Lifeco Inc. has reported net
income attributable to common shareholders of $536 million or $1.43 per
share, up 23% from $437 million or $1.17 per share for 1998. Net income
attributable to common shareholders before amortization of goodwill was
$596 million. The return on common shareholders' equity was 17.1% for
the twelve months ended December 31, 1999.
For the fourth quarter of 1999, net income attributable to common shareholders
was $143 million or $0.38 per share, which compares with $115 million
or $0.31 per share in 1998.
Great-West Lifeco's subsidiary, The Great-West Life Assurance Company,
has reported that net income for 1999 reflects significant increases for
both Canadian and United States operations, compared to 1998.
Premium income, including self-funded premium equivalents and segregated
fund deposits, was up significantly in health, increased for property
and casualty insurance lines, and down slightly in life insurance and
annuities. Fee and other income was up strongly over 1998. Reinsurance
premiums were down over 1998, typical of the irregular nature of premiums
in this line of business.
Total assets under administration increased to $87.0 billion at December
31, 1999, up 5% from a year ago.
At its meeting today, the Board of Directors approved a quarterly dividend
of $0.155 per share, an increase of 11%, on the common shares of the Company
payable March 31, 2000 to shareholders of record at the close of business
March 17, 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 March 31, 2000 to shareholders of record at the close of business
March 17, 2000
Class A, Series 1 Preferred Shares $0.3125 per share
payable April 30, 2000 to shareholders of record at the close of business
April 14, 2000.
Financial highlights, a summary of consolidated operations, and a consolidated
balance sheet for 1999 are attached.
Great-West Lifeco Inc. is a financial services holding company with interests
in the life insurance, health insurance, retirement savings, specialty
reinsurance and 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 INC.
FINANCIAL HIGHLIGHTS
(in millions of dollars except per common share amounts)
1999 1998 % Change
For the Year
Premium and fee income including risk
premiums, self-funded premium
equivalents and segregated fund
deposits
Life insurance $ 3,323 $ 3,425 -3%
Annuities 6,373 6,471 -2%
Health insurance 8,169 7,197 14%
Reinsurance 2,023 2,646 -24%
Property & casualty insurance 52 44 18%
Fee and other income 1,222 1,003 22%
Net income attributable to:
Preferred shareholders 33 36 -8%
Common shareholders 536 437 23%
Return on common shareholders' equity 17.1% 15.4%
Per Common Share
Net earnings $ 1.43 $ 1.17 23%
Dividends paid 0.53 0.44 20%
Book value 8.70 8.12 7%
At December 31
Life insurance in force (face amount) $471,078 $477,234 -1%
Annuities in force (funds held) 47,255 43,936 8%
Health insurance in force
(annualized premiums) 9,238 9,309 -1%
Total assets 53,256 54,725 -3%
Segregated funds assets 33,728 28,394 19%
Total assets under administration 86,984 83,119 5%
Capital stock and surplus 3,789 3,548 7%
GREAT-WEST LIFECO INC.
SUMMARY OF CONSOLIDATED OPERATIONS
(in millions of dollars except earnings per common share)
for the quarter
ended December 31
1999 1998
Income
Premium income $ 2,480 $ 2,999
Net investment income 901 915
Fee and other income 323 256
3,704 4,170
Benefits and Expenses
Paid or credited to policyholders and
beneficiaries including policyholder
dividends and experience refunds 2,867 3,359
Commissions 151 157
Operating expenses 404 387
Premium taxes 35 19
Net operating income before income taxes 247 248
Income taxes - current 113 4
- future (65) 98
Net income before minority and other
interests 199 146
Minority and other interests of
The Great-West Life Assurance Company
and its subsidiaries
Participating policyholders 22 (4)
Preferred shareholder dividends 9 9
Minority shareholders' interest 1 2
32 7
Net income before amortization of goodwill 167 139
Amortization of goodwill 16 15
Net income $ 151 $ 124
Earnings per common share $ 0.38 $ 0.31
Summary of Net Income
Preferred shareholder dividends $ 8 $ 9
Net income - common shareholders $ 143 $ 115
Net income $ 151 $ 124
for the year
ended December 31
1999 1998
Income
Premium income $ 8,526 $ 9,237
Net investment income 3,580 3,516
Fee and other income 1,222 1,003
13,328 13,756
Benefits and Expenses
Paid or credited to policyholders and
beneficiaries including policyholder
dividends and experience refunds 9,936 10,680
Commissions 601 538
Operating expenses 1,550 1,445
Premium taxes 123 93
Net operating income before income taxes 1,118 1,000
Income taxes - current 378 216
- future (12) 145
Net income before minority and other
interests 752 639
Minority and other interests of
The Great-West Life Assurance Company
and its subsidiaries
Participating policyholders 83 66
Preferred shareholder dividends 34 35
Minority shareholders' interest 6 7
123 108
Net income before amortization of goodwill 629 531
Amortization of goodwill 60 58
Net income $ 569 $ 473
Earnings per common share $ 1.43 $ 1.17
Summary of Net Income
Preferred shareholder dividends $ 33 $ 36
Net income - common shareholders $ 536 $ 437
Net income $ 569 $ 473
Average number of common shares
outstanding 373,890,983 373,242,445
United States operating results during 1999 have been included
at the average market rate of $1.4856 Canadian compared with
$1.4835 Canadian in 1998.
GREAT-WEST LIFECO INC.
CONSOLIDATED BALANCE SHEET
December 31
(in millions of dollars)
1999 1998
Assets
Bonds $30,397 $30,714
Mortgage loans 8,942 9,977
Stocks 809 792
Real estate 1,106 1,072
Loans to policyholders 5,162 5,604
Cash and certificates of deposit 732 759
Funds withheld by ceding insurers 2,426 2,174
Premiums in course of collection 496 378
Interest due and accrued 553 678
Future income taxes 159 210
Goodwill 1,694 1,689
Other assets 780 678
Total assets $53,256 $54,725
Liabilities
Policy liabilities
Actuarial liabilities $40,036 $41,128
Provision for claims 735 800
Provision for policyholders' dividends 328 329
Provision for experience rating refunds 421 506
Policyholders' funds 1,913 1,927
43,433 44,690
Commercial paper and other loans 690 601
Current income taxes 317 145
Other liabilities 1,593 1,862
Repurchase agreements 116 374
Net deferred gains on portfolio investments sold 1,189 1,422
47,338 49,094
Minority and other interests 2,129 2,083
Capital Stock and Surplus
Capital stock 2,091 2,039
Surplus 1,553 1,250
Provision for unrealized gain on translation
of net investment in foreign operations 145 259
3,789 3,548
Liabilities, capital stock and surplus $53,256 $54,725
United States assets and liabilities at December 31, 1999
have been translated at the market rates of $1.4433 Canadian
for 1999 and $1.53 Canadian for 1998.
Back to top
|
