Great-west Lifeco Inc. · TSX:GWO
Great-west Lifeco — Q3 2003 Earnings Presentation
31 slides from Great-west Lifeco's earnings presentation, November 2003
Slide 1: Great-West Lifeco Quarterly Information Q3 2003
GREAT-WEST LIFECOne QUARTERLY INFORMATION For Analysts & Investors Q3 | 2003
Slide 2: Forward Looking Statements
QUARTERLY INFORMATION Q3 | 2003 For Analysts & Investors Forward Looking Statements This report may contain forward-looking statements about future operations, financial results, objectives and strategies of the Company. Forward-looking statements are typically identified by the words "believe", "ex
Slide 3: Shareholders' Net Income
QUARTERLY INFORMATION Q3 | 2003 For Analysts & Investors 2003 2003 Great-West Lifeco 9 months 3 months Shareholders' Net Income 2002 Actual % Increase 2002 Actual % Increase Base Net Income $1.889 $2.155 14.1% $0.653 $0.726 11.2% CLFC Contribution $0.021 $0.045 Combined Net Income $1.889 $2.176 15.2
Slide 4: Consolidated Earnings
QUARTERLY INFORMATION Q3 | 2003 For Analysts & Investors For the nine months For the three months ended September 30 ended September 30 Consolidated Earnings 2002 2003 Change 2002 2003 Change ($ CDN Millions) Net Income - Common (Before Restructuring Costs) 696 850 22% 240 336 40% Net Income - Commo
Slide 5: Net Income - Common
QUARTERLY INFORMATION Q3 | 2003 For Analysts & Investors For the nine months For the three months ended September 30 ended September 30 Net Income - Common 2002 2003 2002 2003 ($ CDN Millions) Net Income (Before Restructuring Costs) 696 850 240 336 Canada & International 325 429 114 179 United State
Slide 6: Consolidated Assets
QUARTERLY INFORMATION Q3 | 2003 For Analysts & Investors At Septe m ber 30 Consolidated Assets 2002 2003 Change ($ CDN Millions) General Fund Canada & International 35,387 66,963 89% United States 24,048 32,120 34% 59,435 99,083 67% Segregated Fund Canada & International 17,892 41,958 135% United St
Slide 7: Sales, Revenue Premium and Fee Income
QUARTERLY INFORMATION Q3 | 2003 For Analysts & Investors ($ CDN Millions) For the nine months For the three months Sales - ended September 30 ended September 30 New Annualized Premium 2002 2003 Change 2002 2003 Change Canada & International 5,520 5,785 5% 1,915 2,018 5% United States 2,449 2,068 -16
Slide 8: Expenses
QUARTERLY INFORMATION Q3 | 2003 For Analysts & Investors For the nine months For the three months ended September 30 ended September 30 Expenses 2002 2003 Change 2002 2003 Change ($ CDN Millions) Operating & Investment Expenses Canada & International 473 692 46% 155 350 126% United States 877 785 -1
Slide 9: Canada & International Operations
QUARTERLY INFORMATION Q3 | 2003 For Analysts & Investors CANADA & INTERNATIONAL OPERATIONS 9
Slide 10: Canada and International: Sales - New Annualized Premium
QUARTERLY INFORMATION Q3 | 2003 For Analysts & Investors For the nine months For the three m onths e nded Septe mber 30 ende d Se pte mbe r 30 Sales - New Annualized Premium 2002 2003 Change 2002 2003 Change ($ CDN Millions) Individual Insurance & Investment Products Participating Policyholder 46 57
Slide 11: Canada and International: Revenue Premium
QUARTERLY INFORMATION Q3 | 2003 For Analysts & Investors For the nine months For the three months Revenue Premium ended September 30 ended September 30 (Incl. Seg. Funds and ASO) 2002 2003 Change 2002 2003 Change ($ CDN Millions) Individual Insurance & Investment Products Participating Policyholder
Slide 12: Canada and International: Fee Income
QUARTERLY INFORMATION Q3 | 2003 For Analysts & Investors For the nine m onths For the thre e months ended September 30 ended Septe mber 30 Fee Income 2002 2003 Change 2002 2003 Change ($ CDN Millions) Segregated Funds 240 319 33% 78 159 104% Administrative Services Only 51 65 27% 17 27 59% Assets Un
Slide 13: R&IS Investment Funds Net Cash Flow and Asset Change
QUARTERLY INFORMATION Q3 | 2003 For Analysts & Investors R&IS Investment Funds - Individual Net Cash Flow and Asset Change (excluding CLFC) 1,800 Mutual Funds 1,300 800 $Millions 300 (200) (700) (1,200) 2002A 2003A 2002A 2003A 2002A 2003A 2002A 2003A 2002A 2003A Deposits Withdrawals Net Cash Flow Ma
Slide 14: Individual Retail Segregated Funds Market Share
QUARTERLY INFORMATION Q3 | 2003 For Analysts & Investors Individual Retail Segregated Funds Market Share* ($ M illions) Sep.30, 2003 Dec.31, 2002 Sep.30, 2002 % Chg in Net Asset Net Mkt Net Mkt Net Mkt Yr Over In- Assets Share Rank Assets Share Rank Assets Share Rank Yr Quarter Great-West 13,173 32.
Slide 15: Canada and International: Expenses
QUARTERLY INFORMATION Q3 | 2003 For Analysts & Investors For the nine months For the three months ended September 30 ended September 30 Lifeco Lifeco Lifeco Canada & GWL only CLFC Canada GWL only CLFC Canada International Expenses 2002 2003 Change 2003 & Int. 2002 2003 Change 2003 & Int. ($ CDN Mill
Slide 16: Lifeco Canada Net Income
QUARTERLY INFORMATION Q3 | 2003 For Analysts & Investors For the nine months For the three months ended September 30 ended September 30 Lifeco Canada Net Income 2002 2003 Change 2002 2003 Change ($ CDN Millions) Individual Insurance & Investment Products Individual Life & Living Benefits 70 108 54%
Slide 17: Canada and International: Invested Assets
QUARTERLY INFORMATION Q3 | 2003 For Analysts & Investors September 30, 2002 September 30, 2003 Invested Assets $ % $ % ($ CDN Millions) Bonds 16,118 57% 33,693 62% Cash & CD's 1,083 4% 2,394 4% Mortgages 7,295 26% 11,591 21% Stocks 1,388 5% 2,844 5% Real Estate 1,068 4% 1,450 3% Policy Loans 1,479 5
Slide 18: Canada and International: Non-Performing Loans
QUARTERLY INFORMATION Q3 | 2003 For Analysts & Investors Non-Performing Loans 2002 2003 ($ CDN Millions) Bonds 65 165 Mortgages 9 11 Non-Performing Loans 74 176 18 Canada and International
Slide 19: U.S. Operations (US$)
QUARTERLY INFORMATION Q3 | 2003 For Analysts & Investors U.S. OPERATIONS (US$) Note: FX Translation rate is as follows: 2002 2003 Net Income (Including Hedge) 1.5301 1.5875 Balance Sheet 1.5860 1.3500 Transactions 1.5700 1.4300 19
Slide 20: United States: Sales - New Annualized Premium
QUARTERLY INFORMATION Q3 | 2003 For Analysts & Investors Sales-New Annualized Premium ($ US Millions) For the nine months For the three months ended Sept. 30, ended Sept. 30, 2002 2003 Change 2002 2003 Change Employee Benefits 600 534 -11% 100 139 39% Financial Services 960 912 -5% 245 297 21% Sales
Slide 21: United States: Revenue Premium
QUARTERLY INFORMATION Q3 | 2003 For Analysts & Investors Revenue Premium (incl. Seg Funds and ASO) ($ US Millions) For the nine months For the three months ended Sept. 30, ended Sept. 30, 2002 2003 Change 2002 2003 Change Employee Benefits 4,710 4,333 -8% 1,571 1,481 -6% Financial Services 2,402 1,9
Slide 22: United States: Fee Income
QUARTERLY INFORMATION Q3 | 2003 For Analysts & Investors Fee Income ($ US millions) For the nine months For the three months ended Sept. 30, ended Sept. 30, 2002 2003 Change 2002 2003 Change Segregated Funds 117 110 -6% 39 38 -2% Administrative Services Only 508 458 -10% 162 149 -8% Assets Under Adm
Slide 23: United States: Expenses
QUARTERLY INFORMATION Q3 | 2003 For Analysts & Investors Expenses ($ US Millions) For the nine months For the three months ended Sept. 30, ended Sept. 30, GWL&A only CLFC Lifeco GWL&A only CLFC Lifeco 2002 2003 Change 2003 U.S. 2002 2003 Change 2003 U.S. Employee Benefits 417 382 -8% 14 396 131 130
Slide 24: United States: Shareholder Net Income
QUARTERLY INFORMATION Q3 | 2003 For Analysts & Investors Shareholder Net Income ($ US Millions) For the nine months For the three months ended Sept. 30, ended Sept. 30, 2002 2003 Change 2002 2003 Change Employee Benefits 119 135 13% 43 49 14% Financial Services 120 122 2% 39 48 23% Corporate 3 12 6
Slide 25: Employee Benefits - Life & Health Sales
QUARTERLY INFORMATION Q3 | 2003 For Analysts & Investors Employee Benefits - Life & Health Sales ($ US Millions) For the nine months For the three m onths ended Septem ber 30, ended Septem ber 30, 2002 2003 Change 2002 2003 Change Case Sales 825 607 -26% 200 172 -14% Terminations (2,275) (1,553) -32
Slide 26: Financial Services - Sales (New Annualized Premium)
QUARTERLY INFORMATION Q3 | 2003 For Analysts & Investors Financial Services - Sales (New Annualized Premium) ($ US Millions) For the nine months For the three months ended Sept. 30, ended Sept. 30, 2002 2003 Change 2002 2003 Change Individual Annuity- fixed 6 4 -38% 2 1 -50% - variable 157 123 -22%
Slide 27: Financial Services - Participants
QUARTERLY INFORMATION Q3 | 2003 For Analysts & Investors Financial Services - Participants (in 000s) Sept Se pt In-Qtr 2002 2003 Change P/NP 1,329 1,324 83 FASCorp 351 444 19 401(K) 502 435 (14) P/NP & 401(K) Net Cash Flow ($millions) (241) (264) (125) 27 United States
Slide 28: Financial Services - Assets
QUARTERLY INFORMATION Q3 | 2003 For Analysts & Investors Financial Services - Assets ($ US Millions) Se pt Sept In-Qtr 2002 2003 Change Retirement Services P/NP General Account 3,846 3,768 (43) Variable - Funds 2,441 2,943 117 - Stable Value 1,659 1,666 12 Total Variable 4,100 4,609 129 Unwrapped 18
Slide 29: United States: Invested Assets
QUARTERLY INFORMATION Q3 | 2003 For Analysts & Investors Invested Assets At Se pte mbe r 30, ($ US Millions) 2002 2003 ($) (%) ($) (%) Bonds 10,284 73% 15,575 69% Cash and CD's 154 1% 788 3% Mortgages 467 3% 2,592 11% Stocks & Real Estate 199 1% 277 1% Policy Loans 2,928 21% 3,374 15% Invested Asset
Slide 30: United States: Non-Performing Loans
QUARTERLY INFORMATION Q3 | 2003 For Analysts & Investors Non-Performing Loans At September 30, ($ US Millions) 2002 2003 Bonds 24 131 Mortgages 3 11 Foreclosed Real Estate 2 2 Non-Performing Loans 29 144 30 United States
Slide 31: Great-West Lifeco
GREAT-WEST LIFECOnc.