Great-West Lifeco Inc. · TSX:GWO

Great-West Lifeco — Q4 2002 Earnings Presentation

29 slides from Great-West Lifeco's earnings presentation, 2003

  1. Slide 1: Quarterly Information Q4 2002 For Analysts and Investors

    QUARTERLY INFORMATION Q4 2002 For Analysts and Investors 1

  2. Slide 2: Forward Looking Statements

    QUARTERLY INFORMATION Q4 2002 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 ”believ

  3. Slide 3: Consolidated Earnings

    QUARTERLY INFORMATION Q4 2002 For Analysts & Investors For the twelve months For the three months ended December 31 ended December 31 Consolidated Earnings 2001 2002 Change 2001 2002 Change ($ CDN Millions) Net Income - Total 850 962 216 243 Net Income - Common 819 931 208 235 Earnings Per Share $ 2

  4. Slide 4: Net Income - Common

    QUARTERLY INFORMATION Q4 2002 For Analysts & Investors For the twelve months For the three months ended December 31 ended December 31 Net Income - Common 2001 2002 2001 2002 ($ CDN Millions) Lifeco Canada 384 441 102 116 Lifeco US GWL&A Earnings USD 294 321 72 79 FX Translation & other 141 169 34 40

  5. Slide 5: Consolidated Assets

    QUARTERLY INFORMATION Q4 2002 For Analysts & Investors At December 31 Consolidated Assets 2001 2002 Change ($ CDN Millions) General Fund Canada 34,690 36,010 4% United States 24,469 24,061 -2% 59,159 60,071 2% Segregated Fund Canada 19,093 18,504 -3% United States 19,774 17,544 -11% 38,867 36,048 -7

  6. Slide 6: Sales, Revenue Premium and Fee Income

    QUARTERLY INFORMATION Q4 2002 For Analysts & Investors For the twe lve months For the three months ($ CDN Millions) ende d December 31 ende d December 31 Sales - New Annualized Premium 2001 2002 Cha nge 2001 2002 Cha nge Canada 6,919 7,583 10% 2,051 1,912 -7% United States 4,077 3,173 -22% 561 724 2

  7. Slide 7: Expenses

    QUARTERLY INFORMATION Q4 2002 For Analysts & Investors For the tw elve months For the three months ended December 31 ended December 31 Expenses 2001 2002 Change 2001 2002 Change ($ CDN Millions) Operating Expenses Canada 669 610 -9% 164 148 -10% United States 1,272 1,176 -8% 322 309 -4% 1,941 1,786

  8. Slide 8: Canadian Operations

    QUARTERLY INFORMATION Q4 2002 For Analysts & Investors CANADIAN OPERATIONS 8

  9. Slide 9: Sales - New Annualized Premium

    QUARTERLY INFORMATION Q4 2002 For Analysts & Investors For the twelve months For the three months ended December 31 ended December 31 Sales - New Annualized Premium 2001 2002 Change 2001 2002 Change ($ CDN Millions) Individual Insurance & Investment Products Individual Life & Living Benefits 65 65 -

  10. Slide 10: Revenue Premium (Incl. Seg. Funds and ASO)

    QUARTERLY INFORMATION Q4 2002 For Analysts & Investors For the twelve months For the three months ended December 31 ended December 31 Revenue Premium (Incl. Seg. Funds and ASO) 2001 2002 Change 2001 2002 Change ($ CDN Millions) Individual Insurance & Investment Products Individual Life & Living Bene

  11. Slide 11: Fee Income

    QUARTERLY INFORMATION Q4 2002 For Analysts & Investors For the twelve months For the three months ended December 31 ended December 31 Fe e Incom e 2001 2002 Change 2001 2002 Change ($ CDN Millions) Segregated Funds 300 318 6% 79 78 -1% Administrative Services Only 61 69 13% 16 18 13% Assets Under Ad

  12. Slide 12: R&IS Investment Funds - Individual Net Cash Flow and Asset Change

    QUARTERLY INFORMATION Q4 2002 For Analysts & Investors R&IS Investment Funds - Individual Net Cash Flow and Asset Change 2,500 Mutual Funds 2,000 1,500 1,000 $Millions 500 - (500) (1,000) (1,500) 2001A 2002A 2001A 2002A 2001A 2002A 2001A 2002A 2001A 2002A Deposits Withdrawals Net Cash Flow Market Ga

  13. Slide 13: Individual Retail Segregated Funds Market Share

    QUARTERLY INFORMATION Q4 2002 For Analysts & Investors Individual Retail Segregated Funds Market Share* ($ M illions) Dec.31, 2002 Sep. 30, 2002 Dec.31, 2001 % Chg in Net Assets Net Assets Mkt Share Rank Net Assets Mkt Share Rank Net Assets Mkt Share Rank Yr Over Yr In-Quarter Great-West Life1 10,02

  14. Slide 14: Expenses

    QUARTERLY INFORMATION Q4 2002 For Analysts & Investors For the twelve months For the three months ended December 31 ended December 31 Expenses 2001 2002 Change 2001 2002 Change ($ CDN Millions) Individual Insurance & Investment Products Individual Life & Living Benefits 67 59 -12% 18 16 -11% Retirem

  15. Slide 15: Lifeco Canada Net Income

    QUARTERLY INFORMATION Q4 2002 For Analysts & Investors For the twelve months For the three months ended December 31 ended December 31 Lifeco Canada Net Income 1 2001 2002 Change 2001 2002 Change ($ CDN Millions) Individual Insurance & Investment Products Individual Life & Living Benefits 73 96 32% 2

  16. Slide 16: Invested Assets

    QUARTERLY INFORMATION Q4 2002 For Analysts & Investors Dec. 31, 2001 Dec. 31, 2002 Invested Assets $ % $ % ($ CDN Millions) Bonds 16,268 58% 17,114 59% Cash & CD's 389 1% 579 2% Mortgages 7,392 27% 7,190 25% Stocks 1,252 5% 1,414 5% Real Estate 1,072 4% 1,080 4% Policy Loans 1,433 5% 1,494 5% Invest

  17. Slide 17: Non-Performing Loans

    QUARTERLY INFORMATION Q4 2002 For Analysts & Investors Dec. 31 Dec. 31 Non-Performing Loans 2001 2002 ($ CDN Millions) Bonds 39 86 Mortgages 10 7 Non-Performing Loans 49 93 In-Year Charge for Credit Losses 4 42 17

  18. Slide 18: U.S. Operations (US$)

    QUARTERLY INFORMATION Q4 2002 For Analysts & Investors U.S. OPERATIONS (US$) Note: FX Translation rate is as follows: 2001 2002 Income Statement 1.5490 1.5700 Balance Sheet 1.5930 1.5800 18

  19. Slide 19: Sales - New Annualized Premium

    QUARTERLY INFORMATION Q4 2002 For Analysts & Investors For the twelve months For the three months ended December 31 ended December 31 Sales - New Annualized Prem ium 2001 2002 Change 2001 2002 Change ($ US Millions) Employee Benefits 655 749 14% 123 174 41% Financial Services 1,977 1,272 -36% 223 31

  20. Slide 20: Revenue Premium (Incl. Seg. Funds and ASO)

    QUARTERLY INFORMATION Q4 2002 For Analysts & Investors For the twelve months For the three months ended Dec. 31 ended Dec. 31 Revenue Premium (Incl. Seg. Funds and ASO) 2001 2002 Change 2001 2002 Change ($ US Millions) Employee Benefits 6,824 6,233 -9% 1,649 1,523 -8% Financial Services 3,816 3,108

  21. Slide 21: Fee Income

    QUARTERLY INFORMATION Q4 2002 For Analysts & Investors For the twelve months For the three months ended December 31 ended December 31 Fee Income 2001 2002 Change 2001 2002 Change ($ US Millions) Segregated Funds 166 155 -7% 40 38 -5% Administrative Services Only 713 660 -7% 157 152 -3% Assets Under

  22. Slide 22: Expenses

    QUARTERLY INFORMATION Q4 2002 For Analysts & Investors For the twelve months For the three months ended December 31 ended December 31 Expenses 2001 2002 Change 2001 2002 Change ($ US Millions) Employee Benefits 621 549 -12% 151 132 -13% Financial Services 187 174 -7% 48 45 -6% Corporate 9 7 -22% 4 3

  23. Slide 23: Shareholder Net Income (excl. Alta)

    QUARTERLY INFORMATION Q4 2002 For Analysts & Investors For the twelve months For the three months ended Dec. 31 ended Dec.31 Shareholder Net Income (excl. Alta.) 2001 2002 Change 2001 2002 Change ($ US Millions) Employee Benefits 138 159 15% 31 40 29% Financial Services 157 158 1% 43 38 -12% Corpora

  24. Slide 24: Employee Benefits - Life & Health Sales

    QUARTERLY INFORMATION Q4 2002 For Analysts & Investors For the twelve months For the three months ended Dec. 31 ended Dec. 31 Employee Benefits - Life & Health Sales 2001 2002 Change 2001 2002 Change ($ US Millions) Case Sales 1,651 999 -39% 237 174 -27% Terminations (2,883) (2,765) -4% (584) (490)

  25. Slide 25: Financial Services - Sales (New Annualized Premium)

    QUARTERLY INFORMATION Q4 2002 For Analysts & Investors For the twelve months For the three months ended Dec. 31 ended Dec. 31 Financial Services - Sales (New Annua lized Premium) 2001 2002 Change 2001 2002 Change ($ US Millions) Individual Annuity - Fixed 19 7 -63% 9 - - Individual Annuity - Variabl

  26. Slide 26: Financial Services - Participants

    QUARTERLY INFORMATION Q4 2002 For Analysts & Investors Dec. Dec. Financial Services - Participants 2001 2002 In-Qtr Change (in 000s) P/NP 1,269 1,331 2 FASCorp 402 377 40 401 K 546 477 25 P/NP & 401K Net Cash Flow 900 (61) (37) 26

  27. Slide 27: Financial Services - Assets

    QUARTERLY INFORMATION Q4 2002 For Analysts & Investors Dec. Dec. Financial Services - Assets 2001 2002 In-Qtr Change ($ US Millions) P/NP General Account 3,847 3,851 5 Variable - Funds 3,145 2,553 112 - Stable Value 1,214 1,650 (9) Total Variable 4,359 4,203 Unwrapped 21,873 20,653 2,315 FASCorp Unw

  28. Slide 28: Invested Assets (US$)

    QUARTERLY INFORMATION Q4 2002 For Analysts & Investors Dec. 31, 2001 Dec. 31, 2002 Invested Assets $ % $ % ($ US Millions) Bonds 10,240 72% 10,538 73% Cash & CD's 281 2% 211 1% Mortgages 614 4% 417 3% Stocks & Real Estate 205 1% 224 2% Policy Loans 3,000 21% 2,964 21% Invested Assets 14,340 100% 14,

  29. Slide 29: Non-Performing Loans (US$)

    QUARTERLY INFORMATION Q4 2002 For Analysts & Investors Dec. 31 Dec. 31 Non-Performing Loans 2001 2002 ($ US Millions) Bonds 71 24 Mortgages 5 3 Foreclosed Real Estate 11 2 Non-Performing Loans 87 29 In-Quarter Charge for Credit Losses - (2) In-Year Charge for Credit Losses - (5) 29

Great-West Lifeco — Q4 2002 Earnings Presentation on 6ix