Great-West Lifeco Inc. · TSX:GWO

Great-West Lifeco — Q3 2002 Earnings Presentation

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

  1. Slide 1: Quarterly Information Q3 2002 For Analysts and Investors

    QUARTERLY INFORMATION Q3 2002 For Analysts and Investors 1

  2. Slide 2: Forward Looking Statements

    QUARTERLY INFORMATION Q3 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: Highlights

    QUARTERLY INFORMATION Q3 2002 For Analysts & Investors HIGHLIGHTS • Prior year’s comparative earnings have been adjusted to exclude the amortization of goodwill and non-recurring charges related to Alta Health and Life and the events of September 11, 2001. • EPS – $1.889 per common share, up 15% ove

  4. Slide 4: Consolidated Earnings

    QUARTERLY INFORMATION Q3 2002 For Analysts & Investors For the nine months For the three months ended September 30 ended September 30 Consolidated Earnings 2001 2002 Change 2001 2002 Change ($ CDN Millions) Net Income - Total 634 719 220 247 Net Income - Common 611 696 213 240 Earnings Per Share $ 1

  5. Slide 5: Net Income - Common

    QUARTERLY INFORMATION Q3 2002 For Analysts & Investors For the nine m onths For the thre e m onths ended Septem ber 30 ended Septem ber 30 Net Income - Common 2001 2002 Change 2001 2002 Change ($ CDN Millions) Lifeco Canada 282 325 15% 97 114 18% Lifeco US GWL&A Earnings USD 222 242 9% 78 82 5% FX T

  6. Slide 6: Consolidated Assets

    QUARTERLY INFORMATION Q3 2002 For Analysts & Investors At September 30 Consolidated Assets 2001 2002 Change ($ CDN Millions) General Fund Canada 34,091 35,387 4% United States 24,057 24,048 0% 58,148 59,435 2% Segregated Fund Canada 17,642 17,892 1% United States 18,060 17,055 -6% 35,702 34,947 -2%

  7. Slide 7: Sales, Revenue Premium and Fee Income

    QUARTERLY INFORMATION Q3 2002 For Analysts & Investors For the nine m onths For the three m onths ($ CDN Millions) e nded Septem be r 30 e nded Septem be r 30 Sales - New Annualized Premium 2001 2002 Change 2001 2002 Change Canada 4,868 5,671 16% 1,562 1,954 25% United States 3,516 2,449 -30% 1,381

  8. Slide 8: Expenses

    QUARTERLY INFORMATION Q3 2002 For Analysts & Investors For the nine m onths For the three m onths ended Septe m be r 30 ended Septe m be r 30 Expenses 2001 2002 Change 2001 2002 Change ($ CDN Millions) Operating Expenses Canada 507 462 -9% 148 151 2% United States 948 867 -9% 307 262 -15% 1,455 1,32

  9. Slide 9: Canadian Operations

    QUARTERLY INFORMATION Q3 2002 For Analysts & Investors CANADIAN OPERATIONS 9

  10. Slide 10: Sales - New Annualized Premium

    QUARTERLY INFORMATION Q3 2002 For Analysts & Investors For the nine months For the three months ended September 30 ended September 30 Sales - New Annualized Premium 2001 2002 Change 2001 2002 Change ($ CDN Millions) Individual Insurance & Investment Products Individual Life & Living Benefits 47 48 2

  11. Slide 11: Revenue Premium

    QUARTERLY INFORMATION Q3 2002 For Analysts & Investors For the nine months For the three months ended September 30 ended September 30 Revenue Premium (Incl. Seg. Funds and ASO) 2001 2002 Change 2001 2002 Change ($ CDN Millions) Individual Insurance & Investment Products Individual Life & Living Bene

  12. Slide 12: Fee Income

    QUARTERLY INFORMATION Q3 2002 For Analysts & Investors For the nine months For the three months ended September 30 ended September 30 Fe e Incom e 2001 2002 Change 2001 2002 Change ($ CDN Millions) Segregated Funds 221 240 9% 77 78 1% Administrative Services Only 45 51 13% 15 17 13% Assets Under Adm

  13. Slide 13: R&IS Investment Funds - Individual Net Cash Flow and Asset Change

    QUARTERLY INFORMATION Q3 2002 For Analysts & Investors R&IS Investment Funds - Individual Net Cash Flow and Asset Change 2,000 Mutual Funds 1,500 1,000 500 $Millions - (500) (1,000) (1,500) 2001A 2002A 2001A 2002A 2001A 2002A 2001A 2002A 2001A 2002A Deposits Withdrawals Net Cash Flow Market Gain Ass

  14. Slide 14: Segregated Fund Assets

    QUARTERLY INFORMATION Q3 2002 For Analysts & Investors Dec. 31, 2001 Sept. 30, 2002 Nine Month Change Se gregated Fund Asse ts $ % $ % $ % ($ CDN Millions) Equities 10,170 53% 8,867 50% (1,303) -13% Fixed Income 5,339 28% 5,291 30% (48) -1% Balanced 2,231 12% 2,210 12% (21) -1% Real Estate 1,353 7%

  15. Slide 15: Individual Retail Segregated Funds Market Share

    QUARTERLY INFORMATION Q3 2002 For Analysts & Investors Individual Retail Segregated Funds Market Share* ($ M illions) Sep. 30, 2002 Dec.31, 2001 Sep. 30, 2001 % Chg in Net Assets Net Assets Mkt Share Rank Net Assets Mkt Share Rank Net Assets Mkt Share Rank Yr Over Yr From Yr End Great-West Life1 9,6

  16. Slide 16: Expenses

    QUARTERLY INFORMATION Q3 2002 For Analysts & Investors For the nine m onths For the three m onths ended Septem ber 30 ended Septem ber 30 Expenses 2001 2002 Change 2001 2002 Change ($ CDN Millions) Individual Insurance & Investment Products Individual Life & Living Benefits 49 43 -12% 16 14 -13% Ret

  17. Slide 17: Lifeco Canada Net Income

    QUARTERLY INFORMATION Q3 2002 For Analysts & Investors For the nine m onths For the three m onths ended September 30 ended September 30 Lifeco Canada Net Income 1 2001 2002 Change 2001 2002 Change ($ CDN Millions) Individual Insurance & Investment Products Individual Life & Living Benefits 53 70 32%

  18. Slide 18: Invested Assets

    QUARTERLY INFORMATION Q3 2002 For Analysts & Investors Sept. 30, 2001 Sept. 30, 2002 Invested Assets $ % $ % ($ CDN Millions) Bonds 16,136 59% 16,118 57% Cash & CD's 356 1% 1,083 4% Mortgages 7,312 27% 7,295 26% Stocks 1,243 5% 1,388 5% Real Estate 1,059 4% 1,068 4% Policy Loans 1,422 5% 1,479 5% In

  19. Slide 19: Non-Performing Loans

    QUARTERLY INFORMATION Q3 2002 For Analysts & Investors Sept. 30 Sept. 30 Non-Performing Loans 2001 2002 ($ CDN Millions) Bonds 31 65 Mortgages 11 9 Foreclosed Real Estate - - Non-Performing Loans 42 74 In-Year Charge for Credit Losses 1 35 19

  20. Slide 20: U.S. Operations (US$)

    QUARTERLY INFORMATION Q3 2002 For Analysts & Investors U.S. OPERATIONS (US$) Note: FX Translation rate is as follows: 2001 2002 Income Statement 1.5380 1.5700 Balance Sheet 1.5790 1.5860 20

  21. Slide 21: Sales - New Annualized Premium

    QUARTERLY INFORMATION Q3 2002 For Analysts & Investors For the nine months For the three months ended September 30 ended September 30 Sales - New Annualized Prem ium 2001 2002 Change 2001 2002 Change ($ US Millions) Employee Benefits 532 600 13% 99 100 1% Financial Services 1,754 960 -45% 796 245 -6

  22. Slide 22: Revenue Premium

    QUARTERLY INFORMATION Q3 2002 For Analysts & Investors For the nine months For the three months ended Sept. 30 ended Sept. 30 Revenue Premium (Incl. Seg. Funds and ASO) 2001 2002 Change 2001 2002 Change ($ US Millions) Employee Benefits 5,175 4,710 -9% 1,648 1,571 -5% Financial Services 3,031 2,402

  23. Slide 23: Fee Income

    QUARTERLY INFORMATION Q3 2002 For Analysts & Investors For the nine months For the three months ended September 30 ended September 30 Fee Income 2001 2002 Change 2001 2002 Change ($ US Millions) Segregated Funds 126 117 -7% 40 39 -3% Administrative Services Only 556 508 -9% 192 162 -16% Assets Under

  24. Slide 24: Expenses

    QUARTERLY INFORMATION Q3 2002 For Analysts & Investors For the nine months For the three months ended September 30 ended September 30 Expenses 2001 2002 Change 2001 2002 Change ($ US Millions) Employee Benefits 470 417 -11% 150 131 -13% Financial Services 139 129 -7% 45 40 -11% Corporate 5 4 -20% 2

  25. Slide 25: Shareholder Net Income (incl. Alta)

    QUARTERLY INFORMATION Q3 2002 For Analysts & Investors For the nine m onths For the three m onths ended Sept. 30 ended Sept. 30 Shareholder Net Income (incl. Alta.) 2001 2002 Change 2001 2002 Change ($ US Millions) Employee Benefits 86 119 38% 41 42 2% Financial Services 114 120 5% 36 39 8% Corporat

  26. Slide 26: Shareholder Net Income (excl. Alta)

    QUARTERLY INFORMATION Q3 2002 For Analysts & Investors For the nine months For the three months ended Sept. 30 ended Sept. 30 Shareholder Net Income (excl. Alta.) 2001 2002 Change 2001 2002 Change ($ US Millions) Employee Benefits 107 119 11% 41 42 2% Financial Services 114 120 5% 36 39 8% Corporate

  27. Slide 27: Employee Benefits - Life & Health Sales

    QUARTERLY INFORMATION Q3 2002 For Analysts & Investors For the nine m onths For the thre e m onths ended Sept. 30 ended Sept. 30 Employee Benefits - Life & Health Sales 2001 2002 Change 2001 2002 Change ($ US Millions) Case Sales 1,414 825 -42% 368 200 -46% Terminations (2,299) (2,275) -1% (798) (61

  28. Slide 28: Financial Services - 401(k)

    QUARTERLY INFORMATION Q3 2002 For Analysts & Investors For the nine months For the three months ended Sept. 30 ended Sept. 30 Financial Services - 401 (k) 2001 2002 Change 2001 2002 Change ($ US Millions) Case Sales 348 287 -18% 118 106 -10% Terminations (483) (702) 45% (147) (193) 31% Net (135) (41

  29. Slide 29: Financial Services - Sales (New Annualized Premium)

    QUARTERLY INFORMATION Q3 2002 For Analysts & Investors For the nine months For the three months ended Sept. 30 ended Sept. 30 Financial Services - Sales (New Annua lized Premium) 2001 2002 Change 2001 2002 Change ($ US Millions) Individual Annuity - Fixed 10 7 -30% 2 2 0% Individual Annuity - Variab

  30. Slide 30: Financial Services - Participants

    QUARTERLY INFORMATION Q3 2002 For Analysts & Investors Sept. Sept. Financial Services - Participants 2001 2002 In-Qtr Change P/NP 1,255,266 1,329,388 17,084 FASCorp 399,070 337,252 (45,266) 30

  31. Slide 31: Financial Services - Assets

    QUARTERLY INFORMATION Q3 2002 For Analysts & Investors Sept. Sept. Financial Services - Assets 2001 2002 In-Qtr Change ($ US Millions) P/NP General Account 3,972 3,846 44 Variable - Funds 2,784 2,441 (442) - Stable Value 1,189 1,659 135 Total Variable 3,973 4,100 (307) Unwrapped 19,690 18,338 (1,563

  32. Slide 32: Invested Assets

    QUARTERLY INFORMATION Q3 2002 For Analysts & Investors Sept. 30, 2001 Sept. 30, 2002 Invested Assets $ % $ % ($ US Millions) Bonds 10,187 72% 10,284 73% Cash & CD's 147 1% 154 1% Mortgages 692 5% 467 3% Stocks & Real Estate 210 1% 199 1% Policy Loans 2,894 20% 2,928 21% Invested Assets 14,130 100% 1

  33. Slide 33: Non-Performing Loans

    QUARTERLY INFORMATION Q3 2002 For Analysts & Investors Sept. 30 Sept. 30 Non-Performing Loans 2001 2002 ($ US Millions) Bonds 72 24 Mortgages 4 3 Foreclosed Real Estate 13 2 Non-Performing Loans 89 29 In-Year Charge for Credit Losses - - 33

Great-West Lifeco — Q3 2002 Earnings Presentation on 6ix