Great-west Lifeco Inc. · TSX:GWO
Great-west Lifeco — Canada Life Financial — Q2 2003 Earnings Presentation
14 slides from Great-west Lifeco's earnings presentation, Jul 30, 2003
Slide 1: Canada Life Financial Corporation Second Quarter 2003 Results
Canada Life Financial Corporation Second Quarter 2003 Results July 30, 2003
Slide 2: Q2/03 vs. Q2/02 Shareholders' Net Income
Q2/03 vs. Q2/02 Shareholders’ Net Income ($ millions) Common shareholders’ net income Q2/02 125 Increase before the following: 16 Investment provision for specific exposure (11) Impact of declines in global stock markets (6) Change of control costs (after-tax) (6) Common shareholders’ net income Q2/
Slide 3: Common Shareholders' Net Income
Common Shareholders’ Net Income $ millions 140 131 125 128 120 118 120 114 106 108 100 91* 80 60 40 38* 20 0 Q3/01 Q4/01 Q1/02 Q2/02 Q3/02 Q4/02 Q1/03 Q2/03 * Including provisions for September 11, 2001. 3
Slide 4: Earnings Per Common Share
Earnings Per Common Share $0.90 0.81 0.80 $0.80 0.75 0.78 0.71 0.73 $0.70 0.66 0.67 $0.60 $0.50 0.57* $0.40 $0.30 $0.20 0.23* $0.10 $0.00 Q3/01 Q4/01 Q1/02 Q2/02 Q3/02 Q4/02 Q1/03 Q2/03 * Including provisions for September 11, 2001 4
Slide 5: Return on Common Shareholders' Equity (Last Twelve Months)
Return on Common Shareholders’ Equity (Last Twelve Months) 16.0% 13.7 13.7 14.0 14.2 14.0 14.4 14.2 14.0% 13.4 13.2* 12.0% 11.7* 11.5* 11.6* 10.0% 11.1* 8.0% 6.0% 4.0% 2.0% 0.0% Q3/01 Q4/01 Q1/02 Q2/02 Q3/02 Q4/02 Q1/03 Q2/03 * Including provisions for September 11, 2001 5
Slide 6: Premiums, Premium Equivalents and New Deposits
Premiums, Premium Equivalents and New Deposits ($ billions) 3.3 2.8 3.0 2.9 2.9 2.8 2.7 2.8 Q3/01 Q4/01 Q1/02 Q2/02 Q3/02 Q4/02 Q1/03 Q2/03 ($ millions) General fund premiums 1,335 1,372 1,317 1,413 1,561 1,624 1,590 1,562 Segregated funds deposits 917 838 905 1,028 862 926 888 959 Other deposits 40
Slide 7: Revenues
Revenues ($ billions) 2.3 2.3 2.3 2.2 2.2 2.0 2.0 1.9 Q3/01 Q4/01 Q1/02 Q2/02 Q3/02 Q4/02 Q1/03 Q2/03 ($ millions) General Fund Premiums 1,335 1,372 1,317 1,413 1,561 1,624 1,590 1,562 Net investment income 452 666 580 478 496 600 563 575 Fee and other income 117 121 141 132 131 125 123 132 7
Slide 8: Total Assets Under Administration
Total Assets Under Administration ($ billions) 65.4 66.5 65.4 65.2 68.0 64.8 66.3 62.6 Q3/01 Q4/01 Q1/02 Q2/02 Q3/02 Q4/02 Q1/03 Q2/03 ($ millions) General fund 34,326 34,951 34,849 35,241 36,663 38,191 36,751 36,301 Segregated funds 20,093 22,090 23,005 21,929 20,776 21,899 20,476 21,966 Other 8,18
Slide 9: Canadian Division
Canadian Division Impaired assets provision, system costs and change of control related compensation expenses ($ millions) 1050 918 80 902 900 797 793 836 70 719 742 729 750 60 50 600 40 450 30 300 20 150 10 0 0 Q3/01 Q4/01 Q1/02 Q2/02 Q3/02 Q4/02 Q1/03 Q2/03 Revenues 719 797 742 729 793 918 902 836
Slide 10: UK Division
UK Division Group insurance acquisition and better pricing on payout annuities ($millions) 771 800 60 700 612 561 575 600 523 50 468 476 500 400 360 40 300 200 30 100 0 20 Q3/01 Q4/01 Q1/02 Q2/02 Q3/02 Q4/02 Q1/03 Q2/03 Revenues 360 523 468 476 561 612 575 771 Shareholders’ 28 30 32 39 44 33 40 53 N
Slide 11: US Division
US Division Unfavorable group mortality and strong Canadian dollar ($ millions) 700 623 641 620 636 613 40 582 597 600 35 488 30 500 25 400 20 300 15 200 10 100 5 0 0 Q3/01 Q4/01 Q1/02 Q2/02 Q3/02 Q4/02 Q1/03 Q2/03 Revenues 623 582 641 620 636 613 597 488 Shareholders’ 14 26 27 26 21 27 20 11 Net In
Slide 12: Irish Division
Irish Division Lower single premium sales but good earnings from German acquisition ($ millions) 150 138 30 125 25 100 92 20 76 71 72 77 70 75 64 15 50 10 25 5 0 0 Q3/01 Q4/01 Q1/02 Q2/02 Q3/02 Q4/02 Q1/03 Q2/03 Revenues 92 138 76 71 70 72 77 64 Shareholders’ 13 7 10 9 5 6 15 11 Net Income 12
Slide 13: International & Reinsurance Division
International & Reinsurance Division Strong results in life reinsurance ($ millions) 140 123 20 119 116 120 112 100 106 105 99 100 15 80 10 60 40 5 20 0 0 Q3/01 Q4/01 Q1/02 Q2/02 Q3/02 Q4/02 Q1/03 Q2/03 Revenues 100 106 99 112 119 123 116 105 Shareholders’ 3* 4* 6 5 3 10 8 10 Net Income * Not includ
Slide 14: General Expenses
General Expenses ($ millions) Systems projects and change of control costs 300 20% 249 250 233 234 220 183 190 192 15% 200 177 150 10% 100 8.6% 7.5% 7.7% 8.0% 5% 50 6.4% 6.5% 6.3% 6.8% 0 0% Q3/01 Q4/01 Q1/02 Q2/02 Q3/02 Q4/02 Q1/03 Q2/03 General Expenses Expense Ratio represents general expenses to
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