Great-West Lifeco Inc. · TSX:GWO
Great-West Lifeco — Q1 2003 Earnings Presentation
29 slides from Great-West Lifeco's earnings presentation, 2003
Slide 1: Quarterly Information Q1 2003 For Analysts and Investors
QUARTERLY INFORMATION Q1 2003 For Analysts and Investors 1
Slide 2: Forward Looking Statements
QUARTERLY INFORMATION Q1 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 Q1 2003 For Analysts & Investors For the three months ended March 31 Consolidated Earnings 2002 2003 Change ($ CDN Millions) Net Income - Total 229 259 Net Income - Common 222 253 Earnings Per Share $ 0.602 $ 0.690 14.6% 1 Return on Equity (12 months) 21.2% 23.5% 1 For comparat
Slide 4: Net Income - Common
QUARTERLY INFORMATION Q1 2003 For Analysts & Investors For the three months ended March 31 Net Income - Common 2002 2003 ($ CDN Millions) Lifeco Canada 103 121 Lifeco US 119 132 Net Income - Common 222 253 4
Slide 5: Consolidated Assets
QUARTERLY INFORMATION Q1 2003 For Analysts & Investors At March 31 Consolidated Assets 2002 2003 Change ($ CDN Millions) General Fund Canada 34,613 36,891 7% United States 23,948 22,642 -5% 58,561 59,533 2% Segregated Fund Canada 19,708 17,825 -10% United States 20,152 16,113 -20% 39,860 33,938 -15%
Slide 6: Sales, Revenue Premium and Fee Income
QUARTERLY INFORMATION Q1 2003 For Analysts & Investors For the three months ($ CDN Millions) ended March 31 Sales - New Annualized Premium 2002 2003 Change Canada 2,180 2,071 -5% United States 1,186 937 -21% 3,366 3,008 -11% Revenue Premium (Incl. Seg. Funds and ASO) Canada 3,361 3,351 - United Stat
Slide 7: Expenses
QUARTERLY INFORMATION Q1 2003 For Analysts & Investors For the three months ende d March 31 Expenses 2002 2003 Change ($ CDN Millions) Operating Expenses Canada 154 167 8% United States 316 263 -17% 470 430 -9% Investment Expenses Canada 4 3 -25% United States 5 3 -40% 9 6 -33% Total Expenses 479 43
Slide 8: Canadian Operations
QUARTERLY INFORMATION Q1 2003 For Analysts & Investors CANADIAN OPERATIONS 8
Slide 9: Sales - New Annualized Premium
QUARTERLY INFORMATION Q1 2003 For Analysts & Investors For the three months ended March 31 Sales - New Annualized Premium 2002 2003 Change ($ CDN Millions) Individual Insurance & Investment Products Participating Policyholder 14 17 21% Individual Life & Living Benefits 15 14 -7% 29 31 7% Retirement
Slide 10: Revenue Premium (Incl. Seg. Funds and ASO)
QUARTERLY INFORMATION Q1 2003 For Analysts & Investors For the three months ended March 31 Revenue Premium (Incl. Seg. Funds and ASO) 2002 2003 Change ($ CDN Millions) Individual Insurance & Investment Products Participating Policyholder 332 349 5% Individual Life & Living Benefits 98 99 1% 430 448
Slide 11: Fee Income
QUARTERLY INFORMATION Q1 2003 For Analysts & Investors For the three months ended March 31 Fee Income 2002 2003 Change ($ CDN Millions) Segregated Funds 77 80 4% Administrative Services Only 16 17 6% Assets Under Administration 9 10 11% Fee Income 102 107 5% 11
Slide 12: R&IS Investment Funds - Individual Net Cash Flow and Asset Change
QUARTERLY INFORMATION Q1 2003 For Analysts & Investors R &IS In v e s tm e n t F u n ds - In d i v id u a l N e t Ca s h F lo w a n d A s s e t C h a n g e 80 0 M ut ua l Fun ds 60 0 40 0 20 0 - (200 ) (400 ) (600 ) 2002A 2003A 2002A 2003A 2002A 2003A 2002A 2003A 2002A 2003A Deposits Withdrawals Net
Slide 13: Individual Retail Segregated Funds Market Share
QUARTERLY INFORMATION Q1 2003 For Analysts & Investors Individual Retail Segregated Funds Market Share* ($ Millions) Mar.31, 2003 Dec.31, 2002 Mar.31, 2002 % Chg in Net Assets Net As sets Mk t Share Rank Net As sets Mk t Share Rank Net As sets Mk t Share Rank Yr Over Yr In-Quarter 1 Great-W es t Lif
Slide 14: Lifeco Canada Expenses
QUARTERLY INFORMATION Q1 2003 For Analysts & Investors For the three months ended March 31 Lifeco Canada Expenses 2002 2003 Change ($ CDN Millions) Individual Insurance & Investment Products Individual Life & Living Benefits 14 16 14% Retirement & Investment Services 38 36 -5% 52 52 - Group Insuranc
Slide 15: Lifeco Canada Net Income
QUARTERLY INFORMATION Q1 2003 For Analysts & Investors For the three months ended March 31 Lifeco Canada Net Income 2002 2003 Change ($ CDN Millions) Individual Insurance & Investment Products Individual Life & Living Benefits 22 31 41% Retirement & Investment Services 32 29 -9% 54 60 11% Group Insu
Slide 16: Invested Assets
QUARTERLY INFORMATION Q1 2003 For Analysts & Investors March 31, 2002 March 31, 2003 Invested Assets $ % $ % ($ CDN Millions) Bonds 16,468 59% 18,428 62% Cash & CD's 407 2% 364 1% Mortgages 7,183 26% 7,041 24% Stocks 1,200 4% 1,263 4% Real Estate 1,054 4% 1,043 4% Policy Loans 1,443 5% 1,513 5% Inve
Slide 17: Non-Performing Loans
QUARTERLY INFORMATION Q1 2003 For Analysts & Investors March 31 March 31 Non-Performing Loans 2002 2003 ($ CDN Millions) Bonds 35 119 Mortgages 10 4 Non-Performing Loans 45 123 Charge for Credit Losses 18 0.4 (Participating and Shareholder Ac count - after tax) 17
Slide 18: U.S. Operations (US$)
QUARTERLY INFORMATION Q1 2003 For Analysts & Investors U.S. OPERATIONS (US$) Note: FX Translation rate is as follows: 2002 2003 Income Statem ent 1.5945 1.5100 Balance Sheet 1.5935 1.4700 18
Slide 19: Sales - New Annualized Premium (US)
QUARTERLY INFORMATION Q1 2003 For Analysts & Investors For the three months ended March 31 Sales - New Annualized Premium 2002 2003 Change ($ US Millions) Employee Benefits 346 268 -23% Financial Services 398 352 -12% Sales - New Annualized Premium 744 620 -17% 19
Slide 20: Revenue Premium (US)
QUARTERLY INFORMATION Q1 2003 For Analysts & Investors For the three months ended March 31 Revenue Premium (Incl. Seg. Funds and ASO) 2002 2003 Change ($ US Millions) Employee Benefits 1,610 1,445 -10% Financial Services 951 709 -25% Total Shareholder 2,561 2,154 -16% Participating Policyholder 56 5
Slide 21: Fee Income (US)
QUARTERLY INFORMATION Q1 2003 For Analysts & Investors For the three months e nded March 31 Fee Income 2002 2003 Change ($ US Millions) Administrative Services Only 171 159 -7% Segregated Funds 38 35 -8% Assets Under Administration 18 22 22% 56 57 2% Fee Income 227 216 -5% 21
Slide 22: Expenses (US)
QUARTERLY INFORMATION Q1 2003 For Analysts & Investors For the three months ended March 31 Expenses 2002 2003 Change ($ US Millions) Employee Benefits 147 129 -12% Financial Services 47 42 -11% Corporate 3 2 -33% Total Shareholder 197 173 -12% Participating Policyholder 1 1 - Operating Expenses 198
Slide 23: Shareholder Net Income (US)
QUARTERLY INFORMATION Q1 2003 For Analysts & Investors For the three months ended March 31 Shareholder Net Income 2002 2003 Change ($ US Millions) Employee Benefits 37 45 22% Financial Services 39 38 -3% Corporate 2 1 Shareholder Net Income 78 84 8% Shareholder Net Income - (Cdn $) 119 132 11% 23
Slide 24: Employee Benefits - Life & Health Sales
QUARTERLY INFORMATION Q1 2003 For Analysts & Investors For the three months ended March 31 Employee Benefits - Life & Health Sales 2002 2003 Change ($ US Millions) Case Sales 360 261 -28% Terminations (952) (665) -30% Net (592) (404) -32% Sales Premium 346 269 -22% Net Premium (472) (513) 9% Members
Slide 25: Financial Services - Sales
QUARTERLY INFORMATION Q1 2003 For Analysts & Investors For the three months ended March 31 Financial Services - Sales (New Annualized Premium ) 2002 2003 Change ($ US Millions) Individual Annuity - Fixed 3 2 -33% Individual Annuity - Variable 83 51 -39% 86 53 -38% Bank-Owned Life Insurance (incl. va
Slide 26: Financial Services - Participants
QUARTERLY INFORMATION Q1 2003 For Analysts & Investors March March Financial Serv ices - Participants 2002 2003 (in 000s) P/NP 1,298 1,226 FASCorp 396 404 401 K 540 464 P/NP & 401K Net Cash Flow ($US M illions) (46) (89) 26
Slide 27: Financial Services - Assets
QUARTERLY INFORMATION Q1 2003 For Analysts & Investors March March Financial Services - Assets 2002 2003 ($ US Millions) P/NP General Account 3,808 3,815 Variable - Funds 3,156 2,459 - Stable Value 1,431 1,709 Total Variable 4,587 4,168 Unwrapped 21,049 20,877 FASCorp Unwrapped 6,341 5,918 401K 7,58
Slide 28: Invested Assets (US$)
QUARTERLY INFORMATION Q1 2003 For Analysts & Investors Ma rch. 31, 2002 Ma rch. 31, 2003 Invested Assets $ % $ % ($ US Millions) Bonds 10,082 73% 10,514 72% Cash & CD's 174 1% 409 3% Mortgages 581 4% 381 3% Stocks & Real Estate 198 1% 221 2% Policy Loans 3,005 21% 2,964 20% Invested Assets 14,040 10
Slide 29: Non-Performing Loans (US$)
QUARTERLY INFORMATION Q1 2003 For Analysts & Investors March. 31 March. 31 Non-Performing Loans 2002 2003 ($ US Millions) Bonds 56 24 Mortgages 14 3 Foreclosed Real Estate 2 Non-Performing Loans 72 27 Charge for Credit Losses (0.5) (2) (after-tax) 29