Great-West Lifeco Inc. · TSX:GWO

Great-West Lifeco — Q4 2003 Earnings Presentation

36 slides from Great-West Lifeco's earnings presentation, February 2004

  1. Slide 1: Quarterly Information Q4 2003 for Analysts and Investors

    QUARTERLY INFORMATION Q4 2003 For Analysts & Investors QUARTERLY INFORMATION Q4 2003 For Analysts and Investors

  2. Slide 2: Forward Looking Statements

    QUARTERLY INFORMATION Q4 2003 For Analysts & Investors Forward Looking Statements This presentation may contain forward-looking statements about the Company, including its business operations, strategy and expected financial performance and condition. Forward-looking statements include statements th

  3. Slide 3: Non-GAAP Financial Measures

    QUARTERLY INFORMATION Q4 2003 For Analysts & Investors Non-GAAP Financial Measures This Report may also contain non-GAAP financial measures. Terms by which non-GAAP financial measures are identified include "adjusted earnings", “earnings before one-time charges" and "net income before restructuring

  4. Slide 4: Great-West Lifeco Shareholders' Net Income

    QUARTERLY INFORMATION Q4 2003 For Analysts & Investors 2003 2003 Great-West Lifeco 12 months 3 months Shareholders' Net Income 2002 Actual % Increase 2002 Actual % Increase Base Net Income $2.530 $2.861 13.1% $0.641 $0.707 10.3% CLFC Contribution $0.137 $0.115 Combined Net Income * $2.530 $2.998 18.

  5. Slide 5: Consolidated Earnings

    QUARTERLY INFORMATION Q4 2003 For Analysts & Investors For the twelve months For the three months ended December 31 ended December 31 Consolidated Earnings 2002 2003 Change 2002 2003 Change ($ CDN Millions) Net Income - Common (Before Restructuring Costs) 931 1,215 30.5% 235 365 55.3% Net Income - C

  6. Slide 6: Net Income - Common

    QUARTERLY INFORMATION Q4 2003 For Analysts & Investors For the twelve months For the three months ended December 31 ended December 31 Net Income - Common 2002 2003 2002 2003 ($ CDN Millions) Canada / Europe 441 629 116 200 United States 490 593 119 166 Lifeco Corporate - Other (7) (1) 931 1,215 235

  7. Slide 7: Canada Life Acquisition Earnings Contribution

    QUARTERLY INFORMATION Q4 2003 For Analysts & Investors Canada Life Acquisition 3 mos 3 mos Total Earnings Contribution Pre-Close Sept. 2003 Dec. 2003 ($ CDN Millions) Net Income - Common Shareholders Canada / Europe (9) 57 76 124 United States - 14 31 45 (9) 71 107 169 Per Common Share Accretion - B

  8. Slide 8: Canada Life Acquisition Expense Synergies

    QUARTERLY INFORMATION Q4 2003 For Analysts & Investors Canada Life Acquisition Expense Synergies (Annualized) Sept. 2003 Dec. 2003 ($ CDN Millions) Expense Synergy Target Canada 210 210 United States 80 80 Europe - 40 290 330 Expense Reduction (Annualized) Realized Canada 47 111 United States 20 51

  9. Slide 9: Canada Life Acquisition Restructuring & Exit Program Costs

    QUARTERLY INFORMATION Q4 2003 For Analysts & Investors Canada Life Acquisition Restructuring & Exit Program Costs ($ CDN Millions) Amount Utilized in Expected Total Program Costs The Period Ended Dec. 31, 2003 Balance Dec. 31, 2003 Capitalized Expense Total Capitalized Expense Total Capitalized Expe

  10. Slide 10: Reconciliation of Goodwill Balance to Dec. 31, 2003

    QUARTERLY INFORMATION Q4 2003 For Analysts & Investors Canada Life Acquisition Reconciliation of Goodwill Balance to Dec. 31, 2003 Goodwill balance at September 30 4,678 Q4 Adjustments Sep. 30 Dec. 31 Change Intangible Assets na 870 (870) Restructuring 158 292 134 Actuarial Reserves 261 353 92 Inves

  11. Slide 11: Canada Life Acquisition Regulatory Capital Ratios

    QUARTERLY INFORMATION Q4 2003 For Analysts & Investors Canada Life Acquisition At December 31 Regulatory Capital Ratios 2003 2002 MCCSR (GWL Consolidated) 190% 223% RBC (GWL&A Consolidated) 375% * 428% * Proforma for the sale of Canada Life U.S. Group Business 11

  12. Slide 12: Consolidated Assets

    QUARTERLY INFORMATION Q4 2003 For Analysts & Investors At December 31 Consolidated Assets 2002 2003 Change ($ CDN Millions) General Fund Canada / Europe 36,010 67,205 87% United States 24,061 30,246 26% 60,071 97,451 62% Segregated Fund Canada / Europe 18,504 44,874 143% United States 17,544 16,825

  13. Slide 13: Sales - New Annualized Premium

    QUARTERLY INFORMATION Q4 2003 For Analysts & Investors ($ CDN Millions) For the twelve months For the three months Sales - ended December 31 ended December 31 New Annualized Premium 2002 2003 Change 2002 2003 Change Canada / Europe 7,388 8,901 20% 1,868 3,116 67% United States 3,173 3,034 -4% 724 96

  14. Slide 14: Expenses

    QUARTERLY INFORMATION Q4 2003 For Analysts & Investors For the twelve months For the three months ended December 31 ended December 31 Expenses 2002 2003 Change 2002 2003 Change ($ CDN Millions) Operating & Investment Expenses Canada / Europe 625 1,042 67% 153 350 129% United States 1,188 1,060 -11%

  15. Slide 15: Canada / Europe Operations

    QUARTERLY INFORMATION Q4 2003 For Analysts & Investors CANADA / EUROPE OPERATIONS 15

  16. Slide 16: Canada / Europe Sales - New Annualized Premium

    QUARTERLY INFORMATION Q4 2003 For Analysts & Investors For the twelve months For the three months ended December 31 ended December 31 Sales - New Annualized Premium 2002 2003 Change 2002 2003 Change ($ CDN Millions) Individual Insurance & Investment Products Participating Policyholder 67 80 19% 21 2

  17. Slide 17: Canada / Europe Revenue Premium

    QUARTERLY INFORMATION Q4 2003 For Analysts & Investors For the twelve months For the three months Revenue Premium ended December 31 ended December 31 (Incl. Seg. Funds and ASO) 2002 2003 Change 2002 2003 Change ($ CDN Millions) Individual Insurance & Investment Products Participating Policyholder 1,

  18. Slide 18: Canada / Europe Fee Income

    QUARTERLY INFORMATION Q4 2003 For Analysts & Investors For the twelve months For the three months ended December 31 ended December 31 Fee Income 2002 2003 Change 2002 2003 Change ($ CDN Millions) Segregated Funds 318 489 54% 78 170 118% Administrative Services Only 69 97 41% 18 32 78% Assets Under A

  19. Slide 19: R&IS Investment Funds Net Cash Flow and Asset Change

    QUARTERLY INFORMATION Q4 2003 For Analysts & Investors R&IS Investment Funds - Individual Net Cash Flow and Asset Change (excluding CLFC) 2,000 1,500 1,000 $Millions 500 - (500) (1,000) 2002A 2003A 2002A 2003A 2002A 2003A 2002A 2003A 2002A 2003A Deposits Withdrawals Net Cash Flow Market Gain Asset C

  20. Slide 20: Individual Retail Segregated Funds Market Share

    QUARTERLY INFORMATION Q4 2003 For Analysts & Investors Individual Retail Segregated Funds Market Share* ($ Millions) Dec.31, 2003 Sep.30, 2003 Dec.31, 2002 % 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 14,016 31.7%

  21. Slide 21: Canada / Europe Expenses

    QUARTERLY INFORMATION Q4 2003 For Analysts & Investors For the twelve months For the three months ended December 31 ended December 31 Lifeco Lifeco Lifeco Canada / Europe GWL only CLFC Canada GWL only CLFC Canada Expenses 2002 2003 Change 2003 & Int. 2002 2003 Change 2003 & Int. ($ CDN Millions) Ind

  22. Slide 22: Lifeco Canada Net Income

    QUARTERLY INFORMATION Q4 2003 For Analysts & Investors For the twelve months For the three months ended December 31 ended December 31 Lifeco Canada Net Income 2002 2003 Change 2002 2003 Change ($ CDN Millions) Individual Insurance & Investment Products Individual Life & Living Benefits 96 150 56% 26

  23. Slide 23: Invested Assets

    QUARTERLY INFORMATION Q4 2003 For Analysts & Investors December 31, 2002 December 31, 2003 Invested Assets $ % $ % ($ CDN Millions) Bonds 17,114 59% 34,815 64% Cash & CD's 579 2% 1,944 4% Mortgages 7,190 25% 11,883 22% Stocks 1,414 5% 2,627 5% Real Estate 1,080 4% 1,396 3% Policy Loans 1,494 5% 2,05

  24. Slide 24: Non-Performing Loans

    QUARTERLY INFORMATION Q4 2003 For Analysts & Investors Non-Performing Loans 2002 2003 ($ CDN Millions) Bonds 86 108 Mortgages 7 4 Non-Performing Loans 93 112 24 Canada / Europe

  25. Slide 25: U.S. Operations (US$)

    QUARTERLY INFORMATION Q4 2003 For Analysts & Investors U.S. OPERATIONS (US$) Note: FX Translation rate is as follows: 2002 2003 Net Income (Including Hedge) 1.5295 1.5873 Balance Sheet 1.5800 1.2900 Transactions 1.5700 1.4000 25

  26. Slide 26: United States Sales-New Annualized Premium

    QUARTERLY INFORMATION Q4 2003 For Analysts & Investors Sales-New Annualized Premium ($ US Millions) For the twelve months For the three months ended Dec. 31 ended Dec. 31 2002 2003 Change 2002 2003 Change Health Care 749 671 -10% 149 137 -8% Financial Services 1,272 1,496 18% 312 584 87% Sales-New A

  27. Slide 27: United States Revenue Premium

    QUARTERLY INFORMATION Q4 2003 For Analysts & Investors Revenue Premium (incl. Seg Funds and ASO) ($ US Millions) For the twelve months For the three months ended Dec. 31 ended Dec. 31 2002 2003 Change 2002 2003 Change Health Care 6,233 5,589 * -10% 1,523 1,256 * -18% Financial Services 3,108 2,917 -

  28. Slide 28: United States Fee Income

    QUARTERLY INFORMATION Q4 2003 For Analysts & Investors Fee Income ($ US millions) For the twelve months For the three months ended Dec. 31 ended Dec. 31 2002 2003 Change 2002 2003 Change Segregated Funds 155 150 -3% 38 40 5% Administrative Services Only 660 605 -8% 152 146 -4% Assets Under Administr

  29. Slide 29: United States Expenses

    QUARTERLY INFORMATION Q4 2003 For Analysts & Investors Expenses ($ US Millions) For the twelve months For the three months ended Dec. 31 CLFC ended Dec. 31 CLFC GWL&A only stub Lifeco GWL&A only stub Lifeco 2002 2003 Change 2003 U.S. 2002 2003 Change 2003 U.S. Health Care 549 515 -6% 28 543 132 133

  30. Slide 30: United States Shareholder Net Income

    QUARTERLY INFORMATION Q4 2003 For Analysts & Investors Shareholder Net Income ($ US Millions) For the twelve months For the three months ended Dec. 31 ended Dec. 31 2002 2003 Change 2002 2003 Change Health Care 159 180 13% 40 46 15% Financial Services 158 180 14% 38 56 47% Corporate 4 15 1 4 Total S

  31. Slide 31: Health Care - Life & Health Sales

    QUARTERLY INFORMATION Q4 2003 For Analysts & Investors Health Care - Life & Health Sales ($ US Millions) For the twelve months For the three months ended December 31, ended December 31, 2002 2003 Change 2002 2003 Change Case Sales 999 808 -19% 174 201 16% Terminations (2,765) (1,764) -36% (490) (211

  32. Slide 32: Financial Services - Sales (New Annualized Premium)

    QUARTERLY INFORMATION Q4 2003 For Analysts & Investors Financial Services - Sales (New Annualized Premium) ($ US Millions) For the twelve months For the three months ended Dec. 31, ended Dec. 31, 2002 2003 Change 2002 2003 Change Individual Annuity- fixed 7 5 -29% - 1 - variable 197 162 -18% 41 39 -

  33. Slide 33: Financial Services - Participants

    QUARTERLY INFORMATION Q4 2003 For Analysts & Investors Financial Services - Participants (in 000s) Dec. Dec. In-Qtr 2002 2003 Change Retirement Services: P/NP 1,331 1,348 24 FASCorp 377 450 6 401(K) 477 491 56 P/NP & 401(K) Net Cash Flow ($millions) (281) (158) 76 33 United States

  34. Slide 34: Financial Services - Assets

    QUARTERLY INFORMATION Q4 2003 For Analysts & Investors Financial Services - Assets ($ US Millions) Dec. Dec. In-Qtr 2002 2003 Change Retirement Services: P/NP General Account 3,851 3,750 (18) Variable - Funds 2,553 3,295 352 - Stable Value 1,650 1,753 87 Total Variable 4,203 5,048 439 Unwrapped 20,6

  35. Slide 35: United States Invested Assets

    QUARTERLY INFORMATION Q4 2003 For Analysts & Investors Invested Assets At December 31, ($ US Millions) 2002 2003 ($) (%) ($) (%) Bonds 10,538 73% 15,116 70% Cash and CD's 211 1% 400 2% Mortgages 417 3% 2,335 11% Stocks & Real Estate 224 2% 271 1% Policy Loans 2,964 21% 3,496 16% Invested Assets 14,3

  36. Slide 36: United States Non-Performing Loans

    QUARTERLY INFORMATION Q4 2003 For Analysts & Investors Non-Performing Loans At December 31 ($ US Millions) 2002 2003 Bonds 24 28 Mortgages 3 5 Foreclosed Real Estate 2 1 Non-Performing Loans 29 34 36 United States

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