Great-West Lifeco Inc. · TSX:GWO
Great-West Lifeco — Q2 2003 Earnings Presentation
29 slides from Great-West Lifeco's earnings presentation, 2003
Slide 1: Quarterly Information Q2 2003 For Analysts and Investors
QUARTERLY INFORMATION Q2 2003 For Analysts and Investors 1
Slide 2: Forward Looking Statements
QUARTERLY INFORMATION Q2 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", "expe
Slide 3: Consolidated Earnings
QUARTERLY INFORMATION Q2 2003 For Analysts & Investors For the six m onths For the three m onths ended June 30 ended June 30 Consolidated Earnings 2002 2003 Change 2002 2003 Change ($ CDN Millions) Net Income - Total 472 526 243 267 Net Income - Common 456 514 234 261 Earnings Per Share $1.236 $1.40
Slide 4: Net Income - Common
QUARTERLY INFORMATION Q2 2003 For Analysts & Investors For the six m onths For the three months ended June 30 ended June 30 Net Income - Common 2002 2003 2002 2003 ($ CDN Millions) Lifeco Canada 211 250 108 129 Lifeco US 245 264 126 132 Net Income - Common 456 514 234 261 4
Slide 5: Consolidated Assets
QUARTERLY INFORMATION Q2 2003 For Analysts & Investors At June 30 Consolidated Assets 2002 2003 Change ($ CDN Millions) General Fund Canada 34,494 36,623 6% United States 23,529 21,082 -10% 58,023 57,705 -1% Segregated Fund Canada 19,153 18,976 -1% United States 17,814 16,166 -9% 36,967 35,142 -5% C
Slide 6: Sales - New Annualized Premium
QUARTERLY INFORMATION Q2 2003 For Analysts & Investors ($ CDN Millions) For the six months For the three months Sales - ended June 30 ended June 30 New Annualized Premium 2002 2003 Change 2002 2003 Change Canada 3,605 3,767 4% 1,425 1,696 19% United States 1,911 1,468 -23% 725 531 -27% 5,516 5,235 -
Slide 7: Expenses
QUARTERLY INFORMATION Q2 2003 For Analysts & Investors For the six months For the three months ended June 30 ended June 30 Expenses 2002 2003 Change 2002 2003 Change ($ CDN Millions) Operating & Investment Expenses Canada 318 342 8% 159 172 8% United States 613 502 -18% 292 236 -19% Total Expenses 9
Slide 8: Canadian Operations
QUARTERLY INFORMATION Q2 2003 For Analysts & Investors CANADIAN OPERATIONS 8
Slide 9: Sales - New Annualized Premium
QUARTERLY INFORMATION Q2 2003 For Analysts & Investors For the six months For the three months ended June 30 ended June 30 Sales - New Annualized Premium 2002 2003 Change 2002 2003 Change ($ CDN Millions) Individual Insurance & Investment Products Participating Policyholder 31 36 16% 17 19 12% Indiv
Slide 10: Revenue Premium
QUARTERLY INFORMATION Q2 2003 For Analysts & Investors For the six m onths For the three m onths Revenue Premium ended June 30 ended June 30 (Incl. Se g. Funds and ASO) 2002 2003 Change 2002 2003 Change ($ CDN Millions) Individual Insurance & Investment Products Participating Policyholder 688 717 4%
Slide 11: Fee Income
QUARTERLY INFORMATION Q2 2003 For Analysts & Investors For the six m onths For the three m onths ende d June 30 ende d June 30 Fee Income 2002 2003 Change 2002 2003 Change ($ CDN Millions) Segregated Funds 162 160 -1% 85 80 -6% Administrative Services Only 34 38 12% 18 21 17% Assets Under Administra
Slide 12: R&IS Investment Funds - Individual Net Cash Flow and Asset Change
QUARTERLY INFORMATION Q2 2003 For Analysts & Investors R&IS Investment Funds - Individual Net Cash Flow and Asset Change 1,400 Mutual Fun ds 1,200 1,000 800 600 $Millions 400 200 - (200) (400) (600) 2002A 2003A 2002A 2003A 2002A 2003A 2002A 2003A 2002A 2003A De posits Withdraw als Ne t Ca sh Flow Ma
Slide 13: Individual Retail Segregated Funds Market Share
QUARTERLY INFORMATION Q2 2003 For Analysts & Investors Individual Retail Segregated Funds Market Share* ($ Millions) June.30, 2003 Dec.31, 2002 June.30, 2002 % Chg in Ne t Asse ts Net Assets Mkt Share Rank Net Assets Mkt Share Rank Net Assets Mkt Share Rank Yr Over Yr In-Quarter 1 Great-West Lif e 1
Slide 14: Lifeco Canada Expenses
QUARTERLY INFORMATION Q2 2003 For Analysts & Investors For the six m onths For the thre e m onths e nde d June 30 e nde d June 30 Lifeco Canada Expenses 2002 2003 Change 2002 2003 Change ($ CDN Millions) Individual Insurance & Investment Products Individual Life & Living Benefits 29 33 14% 15 17 13%
Slide 15: Lifeco Canada Net Income
QUARTERLY INFORMATION Q2 2003 For Analysts & Investors For the six months For the three months ended June 30 ended June 30 Lifeco Canada Net Income 2002 2003 Change 2002 2003 Change ($ CDN Millions) Individual Insurance & Investment Products Individual Life & Living Benefits 42 68 62% 20 37 85% Reti
Slide 16: Invested Assets
QUARTERLY INFORMATION Q2 2003 For Analysts & Investors June 30, 2002 June 30, 2003 Invested Assets $ % $ % ($ CDN Millions) Bonds 16,274 59% 18,105 61% Cash & CD's 333 1% 739 3% Mortgages 7,302 26% 6,970 24% Stocks 1,463 5% 1,300 4% Real Estate 1,059 4% 963 3% Policy Loans 1,462 5% 1,534 5% Invested
Slide 17: Non-Performing Loans
QUARTERLY INFORMATION Q2 2003 For Analysts & Investors June 30 June 30 Non-Performing Loans 2002 2003 ($ CDN Millions) Bonds 76 86 Mortgages 11 4 Non-Performing Loans 87 90 Charge for Credit Losses 23 4 (Participating and Shareholder Account - after tax) 17
Slide 18: U.S. Operations (US$)
QUARTERLY INFORMATION Q2 2003 For Analysts & Investors U.S. OPERATIONS (US$) Note: FX Translation rate is as follows: 2002 2003 Transactions 1.5740 1.4540 Balance Sheet 1.5190 1.3550 Net Income 1.5301 1.5872 18
Slide 19: Sales - New Annualized Premium
QUARTERLY INFORMATION Q2 2003 For Analysts & Investors For the six m onths For the three m onths ended June 30 ended June 30 Sales - New Annualized Premium 2002 2003 Change 2002 2003 Change ($ US Millions) Employee Benefits 500 395 -21% 154 127 -18% Financial Services 715 615 -14% 317 263 -17% Sa le
Slide 20: Revenue Premium
QUARTERLY INFORMATION Q2 2003 For Analysts & Investors For the six m onths For the thre e m onths Revenue Premium ended June 30 ended June 30 (Incl. Seg. Funds and ASO) 2002 2003 Change 2002 2003 Change ($ US Millions) Employee Benefits 3,139 2,852 -9% 1,529 1,407 -8% Financial Services 1,682 1,301
Slide 21: Fee Income
QUARTERLY INFORMATION Q2 2003 For Analysts & Investors For the six months For the three m onths ended June 30 ended June 30 Fee Income 2002 2003 Change 2002 2003 Change ($ US Millions) Administrative Services Only 346 309 -11% 175 150 -14% Segregated Funds 78 72 -8% 40 37 -8% Assets Under Administra
Slide 22: Expenses
QUARTERLY INFORMATION Q2 2003 For Analysts & Investors For the six m onths For the three m onths ended June 30 ended June 30 Expenses 2002 2003 Change 2002 2003 Change ($ US Millions) Employee Benefits 286 252 -12% 139 123 -12% Financial Services 89 85 -4% 42 43 2% Corporate 8 3 5 1 Total Shareholde
Slide 23: Shareholder Net Income
QUARTERLY INFORMATION Q2 2003 For Analysts & Investors For the six m onths For the three m onths ended June 30 ended June 30 Shareholder Net Income 2002 2003 Change 2002 2003 Change ($ US Millions) Employee Benefits 76 86 13% 39 42 8% Financial Services 81 74 -9% 42 36 -14% Corporate 3 6 1 5 Sha re
Slide 24: Employee Benefits - Life & Health Sales
QUARTERLY INFORMATION Q2 2003 For Analysts & Investors For the six m onths For the three m onths Employee Benefits - ended June 30 ended June 30 Life & Health Sales 2002 2003 Change 2002 2003 Change Sales Premium 500 395 -21% 154 126 -18% Net Premium (604) (591) 2% (132) (78) 41% Members (thousands)
Slide 25: Financial Services - Sales (New Annualized Premium)
QUARTERLY INFORMATION Q2 2003 For Analysts & Investors For the six months For the three m onths Financial Services - ended June 30 ended June 30 Sales (New Annualized Prem ium ) 2002 2003 Change 2002 2003 Change ($ US Millions) Individual Annuity - Fixed 5 3 -40% 2 1 -50% Individual Annuity - Variab
Slide 26: Financial Services - Participants
QUARTERLY INFORMATION Q2 2003 For Analysts & Investors June 30 June 30 Financial Services - Participants 2002 2003 In-Qtr Change (in 000s) P/NP 1,312 1,241 15 FASCorp 383 425 21 401 K 517 449 (15) P/NP & 401K Net Cash Flow ($ millions) (226) (139) (50) 26
Slide 27: Financial Services - Assets
QUARTERLY INFORMATION Q2 2003 For Analysts & Investors June 30 June 30 Financial Services - Assets 2002 2003 In-Qtr Change ($ US Millions) P/NP General Account 3,803 3,811 (4) Variable - Funds 2,884 2,825 366 - Stable Value 1,523 1,654 (55) Total Variable 4,407 4,479 Unwrapped 19,901 20,602 (275) FA
Slide 28: Invested Assets (US$)
QUARTERLY INFORMATION Q2 2003 For Analysts & Investors June 30, 2002 June 30, 2003 Invested Assets $ % $ % ($ US Millions) Bonds 10,300 71% 10,817 74% Cash & CD's 387 3% 337 2% Mortgages 522 4% 347 2% Stocks & Real Estate 213 1% 224 2% Policy Loans 3,090 21% 2,986 20% Invested Assets 14,512 100% 14,
Slide 29: Non-Performing Loans (US$)
QUARTERLY INFORMATION Q2 2003 For Analysts & Investors June 30 June 30 Non-Performing Loans 2002 2003 ($ US Millions) Bonds 31 15 Mortgages 6 7 Foreclosed Real Estate 2 - Non-Performing Loans 39 22 Charge for Credit Losses (1) (4) (after-tax) 29