Great-West Lifeco Inc. · TSX:GWO

Great-West Lifeco — Q4 2001 Earnings Presentation

36 slides from Great-West Lifeco's earnings presentation, 2002

  1. Slide 1: Quarterly Information Q4 2001 For Analysts & Investors

    QUARTERLY INFORMATION Q4 2001 For Analysts & Investors 1

  2. Slide 2: Forward-Looking Statements

    QUARTERLY INFORMATION Q4 2001 For Analysts & Investors Forward-Looking Statements This conference call 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 ”belie

  3. Slide 3: Highlights

    QUARTERLY INFORMATION Q4 2001 For Analysts & Investors Highlights • Net Income attributable to Common Shareholders on an adjusted basis was $753 million, or $2.030 per share up 18% over 2000. • Based on the change in accounting for goodwill in 2002, and to provide a comparative basis for 2002’s resu

  4. Slide 4: Consolidated Earnings

    QUARTERLY INFORMATION Q4 2001 For Analysts & Investors Consolidated Earnings ($ CDN millions) For the twelve months ended December 31 2000 2001 Change Total Net Income 674 546 -19% Net Income - Common Shareholders 643 515 -20% ROE 18.6% 13.7% Adjusted Net Income - Common 643 753 17% Adjusted ROE 18.

  5. Slide 5: Net Income to Common Shareholders by Region (Excluding Adjustments)

    QUARTERLY INFORMATION Q4 2001 For Analysts & Investors Net Income to Common Shareholders by Region (2001 Results Excluding Adjustments) ($ millions) For the twelve months ended Dec 31 2000 2001 Change Canadian Segment Great-West Shareholder operating earnings 268 331 24% Portion of Lifeco Earnings (

  6. Slide 6: Net Income to Common Shareholders by Region (Including Adjustments)

    QUARTERLY INFORMATION Q4 2001 For Analysts & Investors Net Income to Common Shareholders by Region (2001 Results Include Adjustments) ($ millions) For the twelve months ended Dec. 31 2000 2001 Change Canadian Segment Great-West Shareholder operating earnings 268 331 24% September 11 (73) Portion of

  7. Slide 7: Consolidated Assets

    QUARTERLY INFORMATION Q4 2001 For Analysts & Investors Consolidated Assets ($ CDN millions) At December 31 2000 2001 Change General Fund Assets Canada 33,127 34,690 5% U.S. 22,627 24,469 8% Total 55,754 59,159 6% Segregated Fund Assets Canada 18,682 19,093 2% U.S. 18,477 19,774 7% Total 37,159 38,86

  8. Slide 8: Sales: New Annualized Premium

    QUARTERLY INFORMATION Q4 2001 For Analysts & Investors Sales New Annualized Premium ($ CDN millions) For the twelve months ended December 31 2000 2001 Change Canada 7,584 61% 6,919 63% -9% U.S. 4,915 39% 4,077 37% -17% Total Sales 12,499 10,996 -12% 8

  9. Slide 9: Revenue Premium Incl. Seg. Funds and ASO

    QUARTERLY INFORMATION Q4 2001 For Analysts & Investors Revenue Premium Incl. Seg. Funds and ASO ($ CDN millions) For the twelve months ended December 31 2000 2001 Change Canada 11,218 42% 11,320 40% 1% U.S. 15,656 58% 16,906 60% 8% Total 26,874 28,226 5% 9

  10. Slide 10: Fee Income

    QUARTERLY INFORMATION Q4 2001 For Analysts & Investors Fee Income ($ CDN millions) For the twelve months ended December 31 2000 2001 Change Canada 346 391 13% U.S. 1,295 1,467 13% Total Fee Income 1,641 1,858 13% 10

  11. Slide 11: Expenses

    QUARTERLY INFORMATION Q4 2001 For Analysts & Investors Expenses ($ CDN millions) For the twelve months ended December 31 2000 2001 Change Operating Expenses GWL (Canada) 629 668 6% GWL&A (U.S.) 1,184 1,270 7% Lifeco Entity 3 3 Total Operating Expenses 1,816 1,941 7% Investment Expenses GWL (Canada)

  12. Slide 12: Canadian Operations

    QUARTERLY INFORMATION Q4 2001 For Analysts & Investors CANADIAN OPERATIONS 12

  13. Slide 13: Sales: New Annualized Premium

    QUARTERLY INFORMATION Q4 2001 For Analysts & Investors Sales New Annualized Premium ($ millions) For the twelve months ended December 31 2000 2001 Change Individual Ins. & Investment Life & Living Benefits 58 65 12% R & IS 4,347 3,041 -30% Sub-Total 4,405 3,106 Group 243 305 25% Reinsurance & Specia

  14. Slide 14: Revenue Premium Incl. Seg. Funds and ASO

    QUARTERLY INFORMATION Q4 2001 For Analysts & Investors Revenue Premium Incl. Seg. Funds and ASO ($ millions) For the twelve months ended December 31 2000 2001 Change Individual Ins. & Investment Life & Living Benefits 373 381 2% R & IS 3,697 2,879 -22% Sub-Total 4,070 3,260 Group 2,973 3,264 10% Rei

  15. Slide 15: Fee Income

    QUARTERLY INFORMATION Q4 2001 For Analysts & Investors Fee Income ($ millions) For the twelve months ended December 31 2000 2001 Change Segregated Funds 268 300 12% Administrative Services Only 51 61 20% Assets Under Administration 27 30 11% Total Fee Income 346 391 13% 15

  16. Slide 16: R&IS Investment Funds - IRIS Net Cash Flow and Asset Change

    QUARTERLY INFORMATION Q4 2001 For Analysts & Investors R&IS Inv e stme nt Funds - IRIS Ne t Cash Flow and Asse t Change 2,500 Mutual Funds 2,000 1,500 1,000 $Million 500 - (500) (1,000) 2000A 2001A 2000A 2001A 2000A 2001A 2000A 2001A 2000A 2001A Deposits Withdrawals Net Cash Flow Market Gain Asset C

  17. Slide 17: Segregated Fund Assets

    QUARTERLY INFORMATION Q4 2001 For Analysts & Investors Segregated Fund Assets ($ Millions) Great-West Life and London Life Q4 2000 Q4 2001 12 Month Change $ % of Total $ % of Total $ % Equities 10,398.7 56% 10,170.2 53% (228.5) -2% Fixed Income 5,080.3 27% 5,210.4 27% 130.1 3% Balanced 2,018.8 11% 2

  18. Slide 18: Individual Segregated Funds Market Share

    QUARTERLY INFORMATION Q4 2001 For Analysts & Investors Individual Segregated Funds Market Share (Source: Investor Economics) ($ M illions) Dec. 31, 2001 Sept. 30, 2001 Dec 31, 2000 % Change Net Assets Mkt Share Rank Net Assets Mkt Share Rank Net Assets Mkt Share Rank Yr Over Yr GW L/LL 10,041 23.8%

  19. Slide 19: Expenses

    QUARTERLY INFORMATION Q4 2001 For Analysts & Investors Expenses ($ millions) For the twelve months ended December 31 2000 2001 Change Individual Ins. & Investment Life & Living Benefits 73 67 -8% R & IS 158 155 -2% Sub-Total 231 222 Group 209 226 8% Reinsurance, Specialty & Other 57 72 26% 497 520 5

  20. Slide 20: Net Income

    QUARTERLY INFORMATION Q4 2001 For Analysts & Investors Net Income ($ millions) December 31 YTD 2000 2001 Change Individual Life & Living Benefits 52 62 19% R & IS 77 85 10% Group Life & Health 66 82 24% Corporate Investments 34 33 -3% Corporate 39 69 77% Total Shareholders 268 331 24% Sept. 11 (73)

  21. Slide 21: Invested Assets

    QUARTERLY INFORMATION Q4 2001 For Analysts & Investors Invested Assets ($ millions) At December 31 2000 2001 ($) (%) ($) (%) Bonds 15,776 58.3% 16,268 58.6% Cash and CD's 352 1.3% 353 1.3% Mortgages 7,522 27.8% 7,392 26.6% Stocks 1,021 3.8% 1,252 4.5% Real Estate 1,042 3.8% 1,072 3.9% Policy Loans 1

  22. Slide 22: Asset Quality: Non-Performing Loans

    QUARTERLY INFORMATION Q4 2001 For Analysts & Investors Asset Quality Non-Performing Loans ($ millions) At December 31 2000 2001 Asset Class Bonds 20 39 Mortgages 14 10 Foreclosed Real Estate 4 0 Total 38 49 In-Year Charge for Credit Losses (3) 4 22

  23. Slide 23: U.S. Operations (US$)

    QUARTERLY INFORMATION Q4 2001 For Analysts & Investors U.S. OPERATIONS (US$) Note: FX Translation rate is as follows: 2000 2001 Income Statement 1.4853 1.5490 Balance Sheet 1.5000 1.5930 23

  24. Slide 24: Sales: New Annualized Premium

    QUARTERLY INFORMATION Q4 2001 For Analysts & Investors Sales New Annualized Premium ($ US millions) For the twelve months ended December 31 2000 2001 Change Employee Benefits 2,024 1,410 -30% Financial Services 1,286 1,222 -5% Total U.S. 3,310 2,632 -20% 24

  25. Slide 25: Revenue Premium Incl. Seg. Funds and ASO

    QUARTERLY INFORMATION Q4 2001 For Analysts & Investors Revenue Premium Incl. Seg. Funds and ASO ($ US millions) For the twelve months ended December 31 2000 2001 Change Employee Benefits 8,333 8,656 4% Financial Services 1,935 1,984 3% 10,268 10,640 4% Par 273 274 Total U.S. 10,541 10,914 4% 25

  26. Slide 26: Fee Income

    QUARTERLY INFORMATION Q4 2001 For Analysts & Investors Fee Income ($ US millions) For the twelve months ended December 31 2000 2001 Change Segregated Funds 175 163 -7% Administrative Services Only 648 713 10% Assets Under Administration 49 71 46% Total Fee Income 872 947 9% 26

  27. Slide 27: Expenses

    QUARTERLY INFORMATION Q4 2001 For Analysts & Investors Expenses ($ US millions) For the twelve months ended December 31 2000 2001 Change Employee Benefits 661 684 3% Financial Services 118 124 5% Corporate 15 9 794 817 3% Par 3 3 Operating Expenses 797 820 3% Investment Expenses 11 10 -8% Total Expe

  28. Slide 28: Net Income (2001 Results Exclude Alta)

    QUARTERLY INFORMATION Q4 2001 For Analysts & Investors Net Income (2001 Results Exclude Alta) ($ US millions) For the twelve months ended Dec. 31 2000 2001 Change Employee Benefits 138 159 15% Financial Services 117 136 16% Corporate (0) (3) Net Income - Common Shareholders 255 292 15% 28

  29. Slide 29: Net Income (2001 Results Include Alta)

    QUARTERLY INFORMATION Q4 2001 For Analysts & Investors Net Income (2001 Results Include Alta) ($ US millions) For the twelve months ended Dec. 31 2000 2001 Change Employee Benefits 138 159 15% Financial Services 117 136 16% Corporate (0) (2) Special charges - (107) Net Income - Common Shareholders 2

  30. Slide 30: Employee Benefits Life & Health Sales

    QUARTERLY INFORMATION Q4 2001 For Analysts & Investors Employee Benefits Life & Health Sales ($ US millions) Dec. Dec. Dec. 2001 2001 2000 In-Qtr YTD YTD Case Sales 237 1,651 2,357 Terminations 584 2,883 2,250 Net (347) (1232) 107 Sales Premium 123 655 978 Net Premium (145) (1352) (103) * Members (t

  31. Slide 31: Employee Benefits 401(k)

    QUARTERLY INFORMATION Q4 2001 For Analysts & Investors Employee Benefits 401 (k) ($ US millions) Dec. Dec. Dec. 2001 2001 2000 In-Qtr YTD YTD Case Sales 250 598 973 Terminations 182 665 445 Net 68 (67) 528 Net Cash Flow 8 439 458 Ending Assets 7,569 7,569 8,110 Participants (thousands) 546 546 551 3

  32. Slide 32: Financial Services Sales Placed Premium

    QUARTERLY INFORMATION Q4 2001 For Analysts & Investors Financial Services Sales Placed Premium ($ US millions) Dec. Dec. Dec. 2001 2001 2000 In-Qtr YTD YTD BOLI (incl. variable/sep. accounts) 7 548 582 Individual Annuity - fixed 6 19 21 - variable 51 239 281 57 258 302 Individual Life (excl. BOLI) 4

  33. Slide 33: Financial Services Participants

    QUARTERLY INFORMATION Q4 2001 For Analysts & Investors Financial Services Participants Dec. Dec. Change 2001 2000 In Quarter YTD YTD P/NP 13,283 1,268,549 1,002,785 FASCorp 3,300 402,370 348,166 33

  34. Slide 34: Financial Services Assets

    QUARTERLY INFORMATION Q4 2001 For Analysts & Investors Financial Services Assets ($ US millions) Dec. Dec. Change 2001 2000 In Quarter YTD YTD P/NP - General Acct. (125) 3,847 3,798 - Variable 386 4,359 4,130 - Unwrapped 2,183 21,873 18,246 FASCorp - Unwrapped 514 6,194 6,088 34

  35. Slide 35: Invested Assets (US$ millions)

    QUARTERLY INFORMATION Q4 2001 For Analysts & Investors Invested Assets ($ US millions) At Dec. 31 2000 2001 ($) (%) ($) (%) Bonds 9,700 70.5% 10,240 71.4% Cash and CD's 219 1.6% 281 2.0% Mortgages 843 6.1% 614 4.3% Stocks & Real Estate 188 1.4% 205 1.4% Policy Loans 2,810 20.4% 3,000 20.9% Total 13,

  36. Slide 36: Asset Quality: Non-Performing Loans

    QUARTERLY INFORMATION Q4 2001 For Analysts & Investors Asset Quality Non-Performing Loans ($ US millions) At Dec. 31 2000 2001 Asset Class Bonds 11 71 Mortgages 10 5 Foreclosed Real Estate 2 11 Total 23 87 In-Year Charge for Normal Credit Losses (9) 0 36

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