February 5, 2003
Canada Life Reports Record Results — 2002 Net Income Increases 43% over 2001
Highlights
| • | 2002 net income of $3.05 per share up 43% | |
| • | Embedded Value rose by 16% to $39.28 per share | |
| • | Embedded Value of new business at $1.37 per share increased by 38% | |
| • | 33% dividend increase announced today. |
Financial Highlights — unaudited
| As at or | ||||||||||||||||||||||||
| For the three months | for the year ended | |||||||||||||||||||||||
| ended December 31 | December 31 | |||||||||||||||||||||||
| % | % | |||||||||||||||||||||||
| 2002 | 2001 | Change | 2002 | 2001 | Change | |||||||||||||||||||
| (in millions of Canadian dollars except per share and percentage amounts) | ||||||||||||||||||||||||
| Common shareholders’ net income | $ | 131 | $ | 38 | 245 | $ | 490 | $ | 342 | 43 | ||||||||||||||
| Return on common shareholders’ equity | 14.0 | 11.1 | N/A | |||||||||||||||||||||
Measures per common share | ||||||||||||||||||||||||
| Basic and diluted earnings | 0.81 | 0.23 | 252 | 3.05 | 2.13 | 43 | ||||||||||||||||||
| Dividends | 0.15 | 0.13 | 15 | 0.60 | 0.52 | 15 | ||||||||||||||||||
| Book value | 23.53 | 20.19 | 17 | |||||||||||||||||||||
| Embedded value | 39.28 | 33.98 | 16 | |||||||||||||||||||||
| Embedded value of new business | 1.37 | 0.99 | 38 | |||||||||||||||||||||
| Premiums, premium equivalents and new deposits | 3,321 | 2,715 | 22 | 12,008 | 11,229 | 7 | ||||||||||||||||||
| Assets under administration | 68,003 | 65,425 | 4 | |||||||||||||||||||||
| Common shareholders’ equity | 3,774 | 3,238 | 17 | |||||||||||||||||||||
| Number of common shares outstanding | 160.4 | 160.4 | — | |||||||||||||||||||||
MCCSR ratio(1) | 202 | % | 191 | % | N/A | |||||||||||||||||||
Notes:
| (1) | Minimum Continuing Capital and Surplus Requirements (MCCSR) is calculated in accordance with capital standards set by the Company’s primary regulator, the Office of the Superintendent of Financial Institutions, Canada. |
February 5, 2003 (Toronto, Canada)
Canada Life Financial Corporation (“the Company”) reported common shareholders’ net income of $490 million or $3.05 per share for 2002, up $148 million or 43% over 2001. Excluding the $85 million provision taken in 2001 for September 11, 2001, net income was up $63 million or 15% over 2001. Net income from the fourth quarter of 2002 was $131 million or 81 cents per share, up $93 million from the fourth quarter of 2001. Excluding the $70 million provision taken in the fourth quarter of 2001 for September 11, 2001, net income for the quarter was up $23 million or 21% over 2001. These increases were a result of growth in business, favourable mortality and morbidity experience, general expense efficiencies and a lower effective tax rate and were realized despite significant decreases in global equity markets and difficult credit markets. The change in accounting policy adopted in 2002 whereby goodwill is no longer amortized as it was in 2001 contributed $25 million to the year over year increase in net income.
Return on equity for the year was 14%, within our previously announced range of 13.5%-14.5% and ahead of 11.1% reported in 2001.
At its meeting today, the Board of Directors approved a quarterly dividend of $0.20 per common share, payable March 31, 2003 to shareholders of record at the close of business on February 21, 2003 and 33% above the amount last quarter. The Board also declared a dividend of $0.390625 on each outstanding Class B Preferred Share, payable on March 31, 2003 to shareholders of record at the close of business on February 21, 2003.
| Canada Life Financial Corporation — 2002 Press Release | Page 1 |
“This strong financial performance was achieved in a difficult environment marked by weak equity markets and is the result of our disciplined, ongoing focus on the fundamentals of executing a strategy for growth that is customer focused and anchored on one overriding goal — shareholder value. We’ve delivered on that goal this year as shown by our Embedded Value of $39.28 per share, an increase of 16%. In addition Embedded Value of new business rose by 38%, ” said David A. Nield, Chairman and Chief Executive Officer.
Business Acquisitions
Building market positions in selected businesses is one of our core objectives to keep building the Company. In the past quarter, we’ve reinforced our stronghold in key markets through strategic acquisitions that also serve to reduce unit costs and enable us to reach our customers more profitably, all of which grows value for our shareholders. Moreover, we have a proven track record of acquisition integration, with 18 successful transactions in 11 years. This experience is a solid foundation for the integration process with the three newest additions to the Canada Life family.
We completed two business acquisitions in the fourth quarter of 2002 and a third on January 1, 2003.
On October 1, 2002, we purchased a significant block of group life and long term disability insurance in the United Kingdom. This acquisition added premium revenue of approximately $70 million in the fourth quarter with no significant impact on net income. The acquisition made Canada Life the market share leader for group insurance in the United Kingdom and is expected to be accretive to earnings in 2003.
On October 31, 2002, we acquired a Canadian provider of preferred term life insurance products, reinforcing our leading position in this market.
On January 1, 2003, we purchased the German life insurance operations of a significant international insurer. The acquisition makes Canada Life Europe one of the top five companies in the German broker unit linked market and the German market leader in critical illness insurance.
Embedded Value
The Embedded Value of the Company was $6.3 billion or $39.28 per share as at December 31, 2002, up 16% from $5.45 billion or $33.98 per share as at December 31, 2001. This significant increase was recognized despite the negative impact of global stock markets. The Embedded Value of new business added during 2002 was $220 million, up 38% from the $159 million added to Embedded Value by new business during 2001. This reflects the vitality of our business and the strong growth in new business profitability this year.
| Canada Life Financial Corporation — 2002 Press Release | Page 2 |
Financial Performance Summary
Common shareholders’ net income of $490 million for the year and $131 million for the fourth quarter,was up $148 million and $93 million over the comparable periods in 2001.
While net income before tax of $635 million for the year has increased $144 million over the prior year’s $491 million, the provision for income taxes of $133 million was down $20 million year over year. Favourable impacts of $22 million in respect of tax in 2002 related to the benefits of some corporate restructuring, the use of previously unrecognized loss carryforwards and lower statutory rates all of which are expected to continue into the future. In addition, a one-time release of a provision no longer required in the United Kingdom has contributed a $24 million favourable impact and the write-off of future tax assets in 2001, that did not recur in 2002 contributed $17 million.
The year-over-year increases in net income included the following:
| Variance to prior year | ||||||||||||
| Year-to-date | ||||||||||||
| Third Quarter | Fourth Quarter | Full Year | ||||||||||
| (in millions of Canadian dollars) | ||||||||||||
| Growth in in-force less investment in new business, favourable mortality and morbidity experience, expense and tax savings | $ | 48 | $ | 52 | $ | 100 | ||||||
| Impact of declines in global stock markets | (21 | ) | (39 | ) | (60 | ) | ||||||
| Release of tax provision and sales force restructuring in the United Kingdom | — | 6 | 6 | |||||||||
| Write-down in 2001 of future tax assets | 13 | 4 | 17 | |||||||||
| Increases before the following: | 40 | 23 | 63 | |||||||||
| Impact of September 11, 2001 | 15 | 70 | 85 | |||||||||
| Increase in common shareholders’ net income | $ | 55 | $ | 93 | $ | 148 | ||||||
A number of factors have contributed to the $52 million increase for the quarter and $100 million increase in year-over-year net income from business in-force, new business, experience and other factors:
| • | Net income from new business improved $15 million for the quarter and $35 million for the year over 2001 as a result of better product pricing margins and more efficient use of reinsurance. | |
| • | Favourable mortality and morbidity experience, expense efficiencies and favourable asset liability management resulted in an increase in net income for both the quarter and the year despite reserve strengthening in the quarter to cover improving annuitant mortality in the United Kingdom. | |
| • | The change in accounting policy, whereby goodwill is no longer amortized as it was in 2001, added $6 million for the quarter and $25 million to the year-over-year increase in net income. | |
| • | Tax benefits arising from business acquisitions and restructuring activities, along with the use of previously unrecognized loss carryforwards and lower statutory tax rates in some jurisdictions, have contributed to improve after-tax earnings by $13 million this quarter and $22 million for the year and will continue to provide a positive impact on future earnings. The sustainable tax rate dropped from 30% in 2001 to 26.5% in 2002. |
Declines in global stock markets had a negative impact on net income. As at December 31, 2002, stock market indices in Canada, the United States and the United Kingdom were on average 21% lower than a year ago. The negative impact of the declines in markets on year-over-year earnings was $39 million for the quarter and $60 million for the year.
Two non-recurring items in the United Kingdom resulted in a net non-recurring gain of $6 million in the quarter. These included the release of a $24 million tax provision as a result of the favourable settlement
| Canada Life Financial Corporation — 2002 Press Release | Page 3 |
of certain outstanding tax issues, and a provision of $18 million net of tax to cover the costs of exiting the in-house sales force.
There was a year-over-year reduction in tax and improvement in net income because of a one-time cost of $17 million for the write-down of future tax assets in 2001 that did not recur in 2002.
Lastly, the provision taken in 2001 for claims arising from September 11 reduced 2001 net income by $70 million in the fourth quarter and $85 million for the year. We continue to hold prudent provisions for these losses.
The top line, as measured by premiums, premium equivalents and new deposits, grew 7% to $12,008 million in 2002.General fund premium revenue increased by $557 million or 10% from 2001 with strong sales in annuities and group life and health insurance across the Company. Segregated funds deposits decreased by $107 million or 3% compared to 2001. Growth in segregated funds deposits varied across the Company with an increase of $120 million in variable fund annuities in the United States, decreases in Canada due to changes in customer preferences and lower single premium sales on the Isle of Man relative to 2001.
General expenses in 2002 were $11 million or 1% less than 2001, excluding the impact of acquisitions and non-recurring charges,of which $7 million related to the group insurance acquisition and $24 million for costs to exit our Financial Consultancy sales force, both in the United Kingdom. Keeping recurring expenses at or below the level of 2001 was a key focus for the Company in 2002 and was achieved despite the effect of the strengthening of the British pound and Euro against the Canadian dollar. Including the impact of acquisitions and non-recurring charges, general expenses of $814 million in 2002 rose $20 million or 3% over 2001.
The quality of the Company’s $36,474 million general fund invested asset portfolio remained high throughout the quarter and at year end.The bond portfolio was maintained at an A+ rating overall. Our disciplined and rigorous approach to credit management resulted in our avoiding significant credit losses during the year. Despite a challenging investment environment in 2002, specific investment provisions and write-offs expensed were a relatively modest $9 million for the quarter and $31 million for the year. Existing reserves at year end fully reflect the extent of potential losses.
Assets under administration were $68,003 million as at December 31, 2002, an increase of $2,578 million over 2001. The increase was the result of new business growth over the past year and the strengthening of the British pound and Euro against the Canadian dollar.
The Company’s measure of capital adequacy for regulatory purposes, as quantified by the MCCSR ratio, was 202% at December 31, 2002 as compared to 191% at the end of 2001. The increase was a result of growth in retained earnings and capital raised in March 2002 net of additional capital required for the business acquisitions completed in the last quarter of the year. Adjusting for the business acquisition completed on January 1, 2003, the ratio declined to approximately 197%.
Takeover Bid
On January 13, 2003, Canada Life’s Board of Directors issued a recommendation to the Company’s common shareholders to reject an offer made on December 27, 2002 by Manulife Financial Corporation (Manulife) to acquire all of the Company’s outstanding common shares. It is not possible to project the outcome of the offer nor the impact on the Company’s future results.
2002 performance including strong earnings and improvement in Embedded Value, further reinforces the Board’s recommendation to reject the Manulife offer.
However, we note that Part 11 of the offer appears to provide that if Manulife takes up and pays for shares tendered, then Manulife could deduct the value of the dividend announced today from the purchase price, effectively reducing the amount that would otherwise be received by a tendering shareholder. We believe this provision is inappropriate and would be unfair to our shareholders.
| Canada Life Financial Corporation — 2002 Press Release | Page 4 |
Guidance for 2003
Consistent with previous guidance, Canada Life expects common shareholders’ net income per share to be between $3.45 and $3.55, an increase of 13% to 16% over results for 2002.
Return on shareholders’ equity is projected to be in the range of 14% to 14.5%.
Top line growth through premiums, premium equivalents and new deposits is estimated to meet our long-term guidance range of 10% to 12%. The acquisitions of the group insurance business in the United Kingdom, and the purchase of the term preferred business in Canada and the German operations are expected to add a further 5% to this range.
This guidance is based on the levels of stock market indices as at September 30, 2002, growing at 1.5% per quarter through to the end of 2003 and may be amended should circumstances change. This guidance was prepared prior to the announcement of the above offer and does not take into account any expenses related thereto.
| Canada Life Financial Corporation — 2002 Press Release | Page 5 |
Performance by Business Segment
Canadian Division
| For the quarter ended | For the year ended | ||||||||||||||||||||
| December 31 | |||||||||||||||||||||
| December 31 | September 30 | December 31 | |||||||||||||||||||
| 2002 | 2002 | 2001 | 2002 | 2001 | |||||||||||||||||
| (in millions of Canadian dollars) | |||||||||||||||||||||
Shareholders’ net income | $ | 52 | $ | 47 | $ | 38 | $ | 192 | $ | 161 | |||||||||||
Premiums, premium equivalents and new deposits | |||||||||||||||||||||
| General fund premiums | $ | 625 | $ | 541 | $ | 486 | $ | 2,103 | $ | 1,893 | |||||||||||
| Segregated funds deposits | 264 | 249 | 315 | 1,283 | 1,395 | ||||||||||||||||
| ASO premium equivalents and other deposits | 756 | 377 | 490 | 2,311 | 1,960 | ||||||||||||||||
| $ | 1,645 | $ | 1,167 | $ | 1,291 | $ | 5,697 | $ | 5,248 | ||||||||||||
Assets under administration | |||||||||||||||||||||
| General fund | $ | 14,119 | $ | 14,181 | $ | 14,031 | $ | 14,119 | $ | 14,031 | |||||||||||
| Segregated funds | 7,397 | 7,038 | 8,118 | 7,397 | 8,118 | ||||||||||||||||
| Other assets | 7,346 | 7,154 | 7,756 | 7,346 | 7,756 | ||||||||||||||||
| $ | 28,862 | $ | 28,373 | $ | 29,905 | $ | 28,862 | $ | 29,905 | ||||||||||||
Shareholders’ net incomeof $52 million for the fourth quarter was $14 million higher than the comparable quarter in 2001 and $5 million ahead of the third quarter. Premium revenue growth, favourable mortality and morbidity experience and improved operating efficiencies were the key contributors to the strong performance. These increases were partially offset by the impact of the stock market declines.
General expenses were $3 million lower than the comparable quarter last year due to efficiencies in our individual and wealth management operations and one-time 2001 expenses related to the acquisition of a direct affinity marketing operation. These favourable variances were partly offset by continued investment in new administrative systems. Improved operational efficiencies resulted in a change in actuarial liabilities that contributed an additional $16 million to shareholders’ net income over the same quarter in 2001.
Shareholders’ net income of $192 million for the year grew by $31 million or 19% over 2001. Premium revenue growth, favourable mortality and morbidity experience, improved operating efficiencies and the reduction in the statutory tax rate from 2001 were the key contributors to the strong performance, together with income tax provisions arising from a write-down of tax assets in 2001 that did not recur in 2002. These increases were partially offset by the impact of the stock market declines and a benefit from investment spreads in 2001 that did not recur in 2002.
Premiums, premium equivalents and new depositswere $1,645 million for the quarter, 27% above the comparable period last year. General fund premiums of $625 million in the fourth quarter of 2002 grew $139 million over 2001, primarily due to strong growth in wealth management and group protection products, particularly in guaranteed and payout annuities and group health insurance. Payout annuity premiums grew as a result of our competitively priced products, increased demand by retirees seeking secure investment vehicles and our enhanced web based quotation system that provides our distribution network with better access to our products. Increases in guaranteed annuities premiums were due to higher sales volumes in the fourth quarter of 2002 compared to the same quarter in 2001, as a result of customers’ preference for fixed income products. The increases in group health insurance premiums were caused by new sales and additional premiums on existing cases.
Segregated funds deposits of $264 million in the quarter were down $51 million from 2001, primarily due to customers’ preference shifting away from equity based products. Other deposits and Administrative Services Only (ASO) business of $756 million grew $266 million over 2001 due to strong growth in group retirement income savings plans including the addition of a few large cases and in assets administered for third parties. This was also the primary reason for the growth in ASO business and other deposits of $379 million over the third quarter of 2002.
| Canada Life Financial Corporation — 2002 Press Release | Page 6 |
For the year, premiums, premium equivalents and new deposits of $5,697 million increased $449 million, up 9% over 2001, primarily due to increases in general fund premiums and other deposits partially offset by declines in segregated funds deposits. Our diversified product portfolio has enabled us to increase our premium revenues as we offer fixed income products such as guaranteed and payout annuities, which customers appear to prefer over equity based products during times of weak stock markets.
Assets under administrationwere $28,862 million as at December 31, 2002, a decrease of $1,043 million from last year. Segregated funds assets declined $721 million or 9% as compared to a TSX Composite Index decline of 14% for 2002. The change in segregated funds assets was better than the composite index as a result of market performance from the portfolio exceeding the overall market level, coupled with positive net cash flows for the year, primarily in the group segregated funds portfolio. Other assets under administration decreased by $410 million or 5% compared to the TSX Composite Index decrease of 14% in 2002, primarily due to the nature of our diversified portfolio that has a significant element of fixed income investments.
United Kingdom Division
| For the quarter ended | For the year ended | ||||||||||||||||||||
| December 31 | |||||||||||||||||||||
| December 31 | September 30 | December 31 | |||||||||||||||||||
| 2002 | 2002 | 2001 | 2002 | 2001 | |||||||||||||||||
| (in millions of Canadian dollars) | |||||||||||||||||||||
Shareholders’ net income | $ | 33 | $ | 44 | $ | 30 | $ | 148 | $ | 122 | |||||||||||
Premiums, premium equivalents and new deposits | |||||||||||||||||||||
| General fund premiums | $ | 428 | $ | 422 | $ | 306 | $ | 1,508 | $ | 1,079 | |||||||||||
| Segregated funds deposits | 412 | 370 | 373 | 1,554 | 1,888 | ||||||||||||||||
| ASO premium equivalents and other deposits | 14 | 11 | 15 | 58 | 83 | ||||||||||||||||
| $ | 854 | $ | 803 | $ | 694 | $ | 3,120 | $ | 3,050 | ||||||||||||
Assets under administration | |||||||||||||||||||||
| General fund | $ | 10,345 | $ | 9,019 | $ | 7,421 | $ | 10,345 | $ | 7,421 | |||||||||||
| Segregated funds | 10,671 | 10,279 | 11,053 | 10,671 | 11,053 | ||||||||||||||||
| Other assets | 553 | 559 | 615 | 553 | 615 | ||||||||||||||||
| $ | 21,569 | $ | 19,857 | $ | 19,089 | $ | 21,569 | $ | 19,089 | ||||||||||||
During the fourth quarter of 2002, the Company made a decision to cease operating the Financial Consultancy sales force and the majority of the consultants transferred to a firm of Independent Financial Advisors (IFAs). Going forward, customers in the United Kingdom will be serviced through various IFAs.
The transaction to acquire a significant block of group life and long term disability insurance business was completed on October 1, 2002. The process of integrating this significant block of business with our existing group business has begun and is expected to be completed by the end of 2003.
Shareholders’ net incomein the fourth quarter increased by $3 million or 10% from the fourth quarter of 2001 but fell $11 million from the third quarter. The drop in income this quarter was due to strengthening of actuarial liabilities to cover improving annuitant mortality offset partially by releases related to liabilities for prior period pension sales and guaranteed annuity options that were no longer required. In addition, the Company recognized tax benefits arising from the business acquisition, restructuring activities and the use of previously unrecognized tax loss carryforwards during the year. Two non-recurring items that added a net $6 million in income for the quarter and year were the release of a tax provision of $24 million and a provision of $18 million net of tax to cover the cost of exiting the in-house sales force.
Shareholders’ net income rose to $148 million for the year, a $26 million or 21% increase over 2001. Contributing to this increase were strong growth in the annuities market and gains from favourable asset liability management, offset somewhat by the impact of negative stock market returns. The change in accounting policy in 2002, whereby goodwill is no longer amortized as it was in 2001, contributed a $20 million favourable variance.
| Canada Life Financial Corporation — 2002 Press Release | Page 7 |
Premiums, premium equivalents and new depositsin the quarter increased by $51 million or 6% compared to the third quarter due to strong payout annuity sales and the increase in group life and health premiums from business acquired.
Total premiums, premium equivalents and new deposits of $3,120 million for the year were up $70 million or 2% over 2001 as a result of strong payout annuity sales and the impact of favourable currency movement. General fund premiums of $1,508 million for the year were up $429 million or 40% over 2001. The majority of this increase was driven by strong sales of payout annuities, which have been competitively priced, supported by strong investment performance and a growing marketplace. This is in line with our strategic focus on building our retirement income business. Group life and health insurance premiums have risen by 44% over the prior year, assisted by the newly acquired business. Segregated funds deposits of $1,554 million for the year were down $334 million or 18% over 2001. The majority of this decrease was due to challenging market conditions and a lower number of large single premium cases on the Isle of Man relative to 2001.
Assets under administrationof $21,569 million increased by $1,712 million in this quarter or 9% over the third quarter, reflecting the growth in general fund payout annuities and the acquisition of the group business. Total assets grew 13% over 2001. The impact of the change in currency rates over 2001 was an increase of $1,810 million. In local currency, total assets increased by 3%. Segregated funds assets fell by $382 million or 3% from 2001. In local currency, these assets fell by 12% due to the impact of the fall in the U.K. stock market during 2002, partially offset by increases in the business written through Canada Life International on the Isle of Man.
United States Division
| For the quarter ended | For the year ended | ||||||||||||||||||||
| December 31 | |||||||||||||||||||||
| December 31 | September 30 | December 31 | |||||||||||||||||||
| 2002 | 2002 | 2001 | 2002 | 2001 | |||||||||||||||||
| (in millions of Canadian dollars) | |||||||||||||||||||||
Shareholders’ net income | $ | 27 | $ | 21 | $ | 26 | $ | 101 | $ | 87 | |||||||||||
Premiums, premium equivalents and new deposits | |||||||||||||||||||||
| General fund premiums | $ | 433 | $ | 459 | $ | 398 | $ | 1,784 | $ | 1,671 | |||||||||||
| Segregated funds deposits | 84 | 67 | 71 | 222 | 102 | ||||||||||||||||
| $ | 517 | $ | 526 | $ | 469 | $ | 2,006 | $ | 1,773 | ||||||||||||
Assets under administration | |||||||||||||||||||||
| General fund | $ | 10,990 | $ | 11,102 | $ | 10,942 | $ | 10,990 | $ | 10,942 | |||||||||||
| Segregated funds | 698 | 629 | 825 | 698 | 825 | ||||||||||||||||
| $ | 11,688 | $ | 11,731 | $ | 11,767 | $ | 11,688 | $ | 11,767 | ||||||||||||
Shareholders’ net incomeof $27 million for the quarter and $101 million for the year increased by $1 million or 4% and $14 million or 16% over the prior year periods respectively. Improved mortality experience, increases in investment performance resulting from continued asset and liability matching improvements, and a favourable impact from revised assumptions in individual insurance actuarial liabilities contributed to the increases. These favourable factors were partially offset by poor morbidity experience in the group health line and higher income taxes.
Premiums, premium equivalents and new depositsof $517 million for the fourth quarter were up $48 million or 10% from the same period last year. General fund premiums of $433 million rose by $35 million or 9% over the fourth quarter of 2001. This increase was a result of strong growth in group protection premiums and individual annuity sales. Segregated funds deposits of $84 million increased by $13 million from the fourth quarter in 2001, resulting from enhanced variable annuity fund offerings.
General fund premiums of $1,784 million for the year increased by $113 million or 7% from 2001. Strong group life and health premium income in addition to higher individual annuity sales contributed to the increase, which was partially offset by a decrease in GIC sales. The slight decrease in individual insurance is due to lower premiums in older closed blocks of business.
| Canada Life Financial Corporation — 2002 Press Release | Page 8 |
Segregated funds deposits of $222 million in 2002 were $120 million or 118% higher than 2001 due to enhanced variable annuity fund offerings.
Assets under administrationdecreased by $79 million or 1% compared to 2001. Total general fund assets grew by $48 million or 0.4% over 2001. Total segregated funds assets decreased by $127 million or 15% from 2001, primarily attributable to a decline in U.S. stock markets. As protection products remain the primary focus for the Division, asset growth is expected to be lower than the overall corporate growth rate.
Irish Division
| For the quarter ended | For the year ended | ||||||||||||||||||||
| December 31 | |||||||||||||||||||||
| December 31 | September 30 | December 31 | |||||||||||||||||||
| 2002 | 2002 | 2001 | 2002 | 2001 | |||||||||||||||||
| (in millions of Canadian dollars) | |||||||||||||||||||||
Shareholders’ net income | $ | 6 | $ | 5 | $ | 7 | $ | 30 | $ | 34 | |||||||||||
Premiums, premium equivalents and new deposits | |||||||||||||||||||||
| General fund premiums | $ | 34 | $ | 38 | $ | 96 | $ | 139 | $ | 391 | |||||||||||
| Segregated funds deposits | 165 | 176 | 79 | 660 | 442 | ||||||||||||||||
| $ | 199 | $ | 214 | $ | 175 | $ | 799 | $ | 833 | ||||||||||||
Assets under administration | |||||||||||||||||||||
| General fund | $ | 1,401 | $ | 1,162 | $ | 1,609 | $ | 1,401 | $ | 1,609 | |||||||||||
| Segregated funds | 3,128 | 2,826 | 2,090 | 3,128 | 2,090 | ||||||||||||||||
| $ | 4,529 | $ | 3,988 | $ | 3,699 | $ | 4,529 | $ | 3,699 | ||||||||||||
Shareholders’ net incomeof $6 million for the fourth quarter was $1 million lower than the fourth quarter last year. Shareholders’ net income in the quarter has been impacted by poor global stock markets. This was offset somewhat by the benefits of growth in our German operation and by currency translation gains.
Shareholders’ net income was $30 million for the year, a $4 million or 12% decrease from 2001. Net income from wealth management has been adversely impacted by poor stock markets, which have reduced new business volumes and investment and fee income and caused an increase in actuarial liabilities. However, net income from our protection business increased by $3 million, primarily as a result of positive claims experience.
Premiums, premium equivalents and new depositsof $199 million in the quarter were up by $24 million or 14% over the same period last year and for the full year down 4% over 2001. The strengthening of the Euro and increased premium income from government-sponsored “Special Savings Incentive Accounts” have been offset by a reduction in single premium revenue on equity backed products. Sales in Germany have continued to grow with almost 11,000 policies sold in the year compared to 4,200 in 2001.
With new actuarial standards introduced in 2001, the “Unitized with Profit Fund” business was reclassified from general fund to segregated fund. The transfer of this business had no impact on net income, but changed year-over-year comparability of general and segregated funds premiums and assets as prior periods have not been restated. The “Unitized with Profit Fund” premiums included in segregated funds deposits in 2002 were $12 million for the quarter and $166 million for the year compared to the $52 million for the fourth quarter and $232 million in the year included in general fund premiums in 2001.
Assets under administrationincreased by $830 million or 22% over the same date last year due principally to the strengthening of the Euro, increased capital to fund organic growth of the business and revenue income, offset somewhat by poor stock market levels.
As a result of the change to the classification of “Unitized with Profit Fund”, the split of assets between general fund and segregated fund has changed since 2001. “Unitized With Profits” assets of $656 million were recorded as general fund assets in 2001.
| Canada Life Financial Corporation — 2002 Press Release | Page 9 |
Effective January 1, 2003, we completed the acquisition of the German life operations of a major international insurer making Canada Life Europe one of the top five companies in the German broker unit linked market and the market leader in critical illness insurance. This is expected to have a positive impact on operations and results for 2003.
International and Reinsurance Division
| For the quarter ended | For the year ended | ||||||||||||||||||||
| December 31 | September 30 | December 31 | December 31 | ||||||||||||||||||
| 2002 | 2002 | 2001 | 2002 | 2001 | |||||||||||||||||
| (in millions of Canadian dollars) | |||||||||||||||||||||
Shareholders’ net income before the following: | $ | 10 | $ | 3 | $ | 4 | $ | 24 | $ | 17 | |||||||||||
| Provision for September 11, 2001 | — | — | 70 | — | 85 | ||||||||||||||||
| Shareholders’ net income (loss) | $ | 10 | $ | 3 | $ | (66 | ) | $ | 24 | $ | (68 | ) | |||||||||
Premiums, premium equivalents and new deposits | |||||||||||||||||||||
| General fund premiums | $ | 104 | $ | 101 | $ | 86 | $ | 381 | $ | 324 | |||||||||||
| Segregated funds deposits | 1 | — | — | 2 | 1 | ||||||||||||||||
| ASO premium equivalents and other deposits | 1 | 1 | — | 3 | — | ||||||||||||||||
| $ | 106 | $ | 102 | $ | 86 | $ | 386 | $ | 325 | ||||||||||||
Assets under administration | |||||||||||||||||||||
| General fund | $ | 1,336 | $ | 1,199 | $ | 948 | $ | 1,336 | $ | 948 | |||||||||||
| Segregated funds | 5 | 4 | 4 | 5 | 4 | ||||||||||||||||
| Other assets | 14 | 12 | 13 | 14 | 13 | ||||||||||||||||
| $ | 1,355 | $ | 1,215 | $ | 965 | $ | 1,355 | $ | 965 | ||||||||||||
Shareholders’ net incomeof $10 million for the fourth quarter was $6 million higher than the prior year, excluding the $70 million after-tax provision established in 2001 for September 11, 2001 claims. Net income for the year was $24 million compared to $17 million for the prior year on a comparable basis. These increases are primarily the result of improved morbidity experience in the run-off accident and health reinsurance. For September 11, 2001 claims we continue to hold an overall provision consistent with the level established in the fourth quarter of 2001. Actual claims payments are occurring at a slower pace than originally estimated, and our outlook for ultimate losses has improved by approximately 11%.
Premiums, premium equivalents and new depositsof $106 million for the fourth quarter and $386 million for the year were up $20 million or 23% and $61 million or 19% respectively from the prior year. The increases were the result of growth in the life reinsurance line of business with strong U.S. sales partially offset by a planned decrease in premiums from the run-off of accident and health reinsurance business.
Assets under administrationof $1,355 million increased $390 million or 40% over the comparable date last year due primarily to general growth in business.
| Canada Life Financial Corporation — 2002 Press Release | Page 10 |
Canada Life Financial Corporation
Supplementary Financial and Other Information — Unaudited
| As at or | As at or | ||||||||||||||||
| for the three months | for the year ended | ||||||||||||||||
| ended December 31 | December 31 | ||||||||||||||||
| 2002 | 2001 | 2002 | 2001 | ||||||||||||||
| (in millions of Canadian dollars except per share and percentage amounts) | |||||||||||||||||
PERFORMANCE MEASURES | |||||||||||||||||
| Common shareholders’ net income | $ | 131 | $ | 38 | $ | 490 | $ | 342 | |||||||||
| Basic earnings per common share | $ | 0.81 | $ | 0.23 | $ | 3.05 | $ | 2.13 | |||||||||
| Book value per common share | $ | 23.53 | $ | 20.19 | $ | 23.53 | $ | 20.19 | |||||||||
| Dividend per common share | $ | 0.15 | $ | 0.15 | $ | 0.60 | $ | 0.52 | |||||||||
| Dividend per preferred share | $ | 0.390625 | N/A | $ | 1.569991 | N/A | |||||||||||
| Return on common shareholders’ equity | 14.0 | % | 11.1 | % | |||||||||||||
EMBEDDED VALUE | |||||||||||||||||
| Embedded Value, end of period | $ | 6,300 | $ | 5,450 | |||||||||||||
| Embedded Value per common share | $ | 39.28 | $ | 33.98 | |||||||||||||
| Value added by new business | $ | 220 | $ | 159 | |||||||||||||
PREMIUMS, PREMIUM EQUIVALENTS AND NEW DEPOSITS | |||||||||||||||||
| General fund premiums | $ | 1,624 | $ | 1,372 | $ | 5,915 | $ | 5,358 | |||||||||
| Segregated funds deposits | 926 | 838 | 3,721 | 3,828 | |||||||||||||
| ASO premium equivalents and other deposits | 771 | 505 | 2,372 | 2,043 | |||||||||||||
| $ | 3,321 | $ | 2,715 | $ | 12,008 | $ | 11,229 | ||||||||||
ASSETS UNDER ADMINISTRATION | |||||||||||||||||
| General fund | $ | 38,191 | $ | 34,951 | |||||||||||||
| Segregated funds | 21,899 | 22,090 | |||||||||||||||
| 60,090 | 57,041 | ||||||||||||||||
| Other assets | 7,913 | 8,384 | |||||||||||||||
| $ | 68,003 | $ | 65,425 | ||||||||||||||
DEBT AND CAPITALIZATION | |||||||||||||||||
| Bank loans | $ | 3 | $ | 3 | |||||||||||||
| Subordinated debentures | 550 | 550 | |||||||||||||||
| Canada Life Capital Securities | 450 | — | |||||||||||||||
| Total debt | 1,003 | 553 | |||||||||||||||
| Participating policyholders’ equity | 48 | 40 | |||||||||||||||
| Preferred shares | 145 | 145 | |||||||||||||||
| Common shares | 317 | 317 | |||||||||||||||
| Retained earnings | 3,457 | 2,921 | |||||||||||||||
| Total equity | $ | 3,967 | $ | 3,423 | |||||||||||||
| MCCSR ratio | 202 | % | 191 | % | |||||||||||||
| Total debt plus preferred shares as a percentage of total debt and equity | 23.1 | % | 17.6 | % | |||||||||||||
COMMON STOCK PERFORMANCE | |||||||||||||||||
| “CL” — Toronto Stock Exchange | |||||||||||||||||
| High | $ | 42.00 | $ | 47.00 | $ | 44.64 | $ | 47.91 | |||||||||
| Low | $ | 28.50 | $ | 39.10 | $ | 28.50 | $ | 38.00 | |||||||||
| Close | $ | 40.29 | $ | 44.28 | $ | 40.29 | $ | 44.28 | |||||||||
| “CLU” — New York Stock Exchange (U.S. Dollars) | |||||||||||||||||
| High | $ | 26.90 | $ | 29.98 | $ | 27.83 | $ | 31.26 | |||||||||
| Low | $ | 18.10 | $ | 24.98 | $ | 18.10 | $ | 24.85 | |||||||||
| Close | $ | 25.51 | $ | 27.75 | $ | 25.51 | $ | 27.75 | |||||||||
| Canada Life Financial Corporation — 2002 Press Release | Page 11 |
Canada Life Financial Corporation
Consolidated Statements of Net Income
| For the periods ended December 31 | |||||||||||||||||
| Three months | Year | ||||||||||||||||
| 2002 | 2001 | 2002 | 2001 | ||||||||||||||
| (unaudited) | (audited) | ||||||||||||||||
| (in millions of Canadian dollars, | |||||||||||||||||
| except per share amounts) | |||||||||||||||||
Revenues | |||||||||||||||||
| Premiums | |||||||||||||||||
| Annuities | $ | 687 | $ | 565 | $ | 2,474 | $ | 2,272 | |||||||||
| Individual life and health insurance | 394 | 372 | 1,510 | 1,428 | |||||||||||||
| Group life and health insurance | 543 | 435 | 1,931 | 1,658 | |||||||||||||
| Net investment income | 600 | 666 | 2,154 | 2,241 | |||||||||||||
| Fee and other income | 125 | 121 | 529 | 465 | |||||||||||||
| 2,349 | 2,159 | 8,598 | 8,064 | ||||||||||||||
Expenditures | |||||||||||||||||
| Payments to policyholders and beneficiaries | |||||||||||||||||
| Annuity payments | 354 | 327 | 1,352 | 1,246 | |||||||||||||
| Life, health and general benefits | 607 | 660 | 2,193 | 1,987 | |||||||||||||
| Maturities, surrender payments and other | 487 | 344 | 1,512 | 1,680 | |||||||||||||
| Participating policyholder dividends | 73 | 85 | 295 | 305 | |||||||||||||
| 1,521 | 1,416 | 5,352 | 5,218 | ||||||||||||||
| Increase in actuarial liabilities | 260 | 282 | 1,129 | 972 | |||||||||||||
| General operating expenses | 249 | 233 | 814 | 794 | |||||||||||||
| Commissions | 158 | 130 | 539 | 461 | |||||||||||||
| Premium and other taxes | 17 | 26 | 66 | 64 | |||||||||||||
| Interest expense | 9 | 10 | 38 | 39 | |||||||||||||
| Non-controlling interest in subsidiary | 8 | — | 25 | — | |||||||||||||
| Goodwill amortization | — | 6 | — | 25 | |||||||||||||
| 2,222 | 2,103 | 7,963 | 7,573 | ||||||||||||||
Net income before income tax provision | 127 | 56 | 635 | 491 | |||||||||||||
| Income tax provision (recovery) | (9 | ) | 12 | 133 | 153 | ||||||||||||
Net income including participating policyholders’ net income (loss) | 136 | 44 | 502 | 338 | |||||||||||||
| Participating policyholders’ net income (loss) | 3 | 6 | 3 | (4 | ) | ||||||||||||
Shareholders’ net income | 133 | 38 | 499 | 342 | |||||||||||||
| Preferred share dividends | 2 | — | 9 | — | |||||||||||||
Common shareholders’ net income | $ | 131 | $ | 38 | $ | 490 | $ | 342 | |||||||||
Average number of common shares outstanding(millions) | |||||||||||||||||
| Basic | 160.4 | 160.4 | 160.4 | 160.4 | |||||||||||||
| Diluted | 160.4 | 160.6 | 160.4 | 160.6 | |||||||||||||
Earnings per common share | |||||||||||||||||
| Basic | $ | 0.81 | $ | 0.23 | $ | 3.05 | $ | 2.13 | |||||||||
| Diluted | $ | 0.81 | $ | 0.23 | $ | 3.05 | $ | 2.13 | |||||||||
| Canada Life Financial Corporation — 2002 Press Release | Page 12 |
Canada Life Financial Corporation
Consolidated Balance Sheets — Audited
| As at December 31 | |||||||||
| 2002 | 2001 | ||||||||
| (in millions of Canadian dollars) | |||||||||
ASSETS | |||||||||
| Invested assets | |||||||||
| Bonds | $ | 22,317 | $ | 19,046 | |||||
| Mortgages | 7,622 | 7,996 | |||||||
| Common and preferred stocks | 2,073 | 2,475 | |||||||
| Real estate | 1,066 | 941 | |||||||
| Policy loans | 1,113 | 1,070 | |||||||
| Cash, cash equivalents and short-term investments | 1,159 | 1,142 | |||||||
| Other | 1,124 | 775 | |||||||
| Total invested assets | 36,474 | 33,445 | |||||||
| Other assets | 1,717 | 1,506 | |||||||
Total general fund assets | $ | 38,191 | $ | 34,951 | |||||
Segregated funds net assets | $ | 21,899 | $ | 22,090 | |||||
LIABILITIES AND EQUITY | |||||||||
| Policy liabilities | |||||||||
| Actuarial liabilities | $ | 29,050 | $ | 27,169 | |||||
| Other policy liabilities | 1,059 | 1,017 | |||||||
| Policyholders’ amounts left on deposit | 453 | 426 | |||||||
| Total policy liabilities | 30,562 | 28,612 | |||||||
| Net deferred gains | 1,472 | 1,491 | |||||||
| Other liabilities | 1,190 | 875 | |||||||
| 33,224 | 30,978 | ||||||||
| Subordinated debentures | 550 | 550 | |||||||
| Non-controlling interest in subsidiary | 450 | — | |||||||
Total equity | 3,967 | 3,423 | |||||||
Total general fund liabilities and equity | $ | 38,191 | $ | 34,951 | |||||
Segregated funds net liabilities | $ | 21,899 | $ | 22,090 | |||||
| Canada Life Financial Corporation — 2002 Press Release | Page 13 |
Canada Life Financial Corporation
Consolidated Statements of Equity — Audited
| For the years ended December 31 | |||||||||
| 2002 | 2001 | ||||||||
| (in millions of Canadian dollars) | |||||||||
PARTICIPATING POLICYHOLDERS’ EQUITY | |||||||||
| Balance, beginning of year | $ | 41 | $ | 45 | |||||
| Participating policyholders’ net income (loss) | 3 | (4 | ) | ||||||
| Balance, end of year | 44 | 41 | |||||||
Currency translation account | |||||||||
| Balance, beginning of year | (1 | ) | (1 | ) | |||||
| Change for the year | 5 | — | |||||||
| Balance, end of year | 4 | (1 | ) | ||||||
Total participating policyholders’ equity | $ | 48 | $ | 40 | |||||
SHAREHOLDERS’ EQUITY | |||||||||
Share capital | |||||||||
| Preferred shares | |||||||||
| Balance, beginning of year | $ | 145 | $ | — | |||||
| Issue of preferred shares | — | 145 | |||||||
| Balance, end of year | 145 | 145 | |||||||
| Common shares | |||||||||
| Balance, beginning and end of year | $ | 317 | $ | 317 | |||||
Retained earnings | |||||||||
| Balance, beginning of year | $ | 2,910 | $ | 2,652 | |||||
| Shareholders’ net income | 499 | 342 | |||||||
| Dividends paid to preferred shareholders | (9 | ) | — | ||||||
| Dividends paid to common shareholders | (96 | ) | (84 | ) | |||||
| Canada Life Capital Securities issuance costs | (5 | ) | — | ||||||
| Balance, end of year | 3,299 | 2,910 | |||||||
Currency translation account | |||||||||
| Balance, beginning of year | 11 | (77 | ) | ||||||
| Change for the year | 147 | 88 | |||||||
| Balance, end of year | 158 | 11 | |||||||
Total retained earnings | $ | 3,457 | $ | 2,921 | |||||
Total equity | $ | 3,967 | $ | 3,423 | |||||
| Canada Life Financial Corporation — 2002 Press Release | Page 14 |
Canada Life Financial Corporation
Consolidated Statements of Cash Flows
| For the period ended December 31 | ||||||||||||||||||
| Three months | Year | |||||||||||||||||
| 2002 | 2001 | 2002 | 2001 | |||||||||||||||
| (unaudited) | (audited) | |||||||||||||||||
| (in millions of Canadian dollars) | ||||||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||||||||||
| Net income including participating policyholders’ net income (loss) | $ | 136 | $ | 44 | $ | 502 | $ | 338 | ||||||||||
| Items not affecting cash and cash equivalents | ||||||||||||||||||
| Increase in actuarial liabilities and other policy liabilities | 227 | 398 | 453 | 1,167 | ||||||||||||||
| Amortization of net deferred gains and amortization of net discounts on bonds and mortgages | (51 | ) | (163 | ) | (206 | ) | (282 | ) | ||||||||||
| Other, including future income taxes | 1 | (27 | ) | 2 | 68 | |||||||||||||
| Change in other operating assets and liabilities | 47 | 66 | 269 | (130 | ) | |||||||||||||
| Increase due to operating activities | 360 | 318 | 1,020 | 1,161 | ||||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||||||||||
| Sales, maturities and scheduled redemptions of: | ||||||||||||||||||
| Bonds | 3,095 | 7,674 | 14,196 | 21,570 | ||||||||||||||
| Mortgages | 931 | 1,319 | 2,380 | 2,672 | ||||||||||||||
| Common and preferred stocks | 282 | 434 | 1,278 | 869 | ||||||||||||||
| Real estate | 13 | 42 | 49 | 66 | ||||||||||||||
| Other investments | 92 | 16 | 409 | 119 | ||||||||||||||
| Purchases of: | ||||||||||||||||||
| Bonds | (3,951 | ) | (7,445 | ) | (16,365 | ) | (22,248 | ) | ||||||||||
| Mortgages | (711 | ) | (1,339 | ) | (1,947 | ) | (2,852 | ) | ||||||||||
| Common and preferred stocks | (382 | ) | (505 | ) | (861 | ) | (1,278 | ) | ||||||||||
| Real estate | (8 | ) | (7 | ) | (89 | ) | (111 | ) | ||||||||||
| Other investments | (654 | ) | (174 | ) | (708 | ) | (294 | ) | ||||||||||
| Net short-term investments | 33 | 9 | 57 | 227 | ||||||||||||||
| Net policy loans | 11 | (29 | ) | (43 | ) | (45 | ) | |||||||||||
| Acquisitions, net of cash paid | 302 | — | 302 | — | ||||||||||||||
| Decrease due to investing activities | (947 | ) | (5 | ) | (1,342 | ) | (1,305 | ) | ||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||||||||||
| Issue of preferred shares | — | 145 | — | 145 | ||||||||||||||
| Issuance of Canada Life Capital Securities, net | �� | — | — | 445 | — | |||||||||||||
| Dividends paid to shareholders | (26 | ) | (21 | ) | (105 | ) | (84 | ) | ||||||||||
| Increase (decrease) due to financing activities | (26 | ) | 124 | 340 | 61 | |||||||||||||
| Effect of changes in exchange rates on cash and cash equivalents | (25 | ) | 11 | 56 | 25 | |||||||||||||
Net increase (decrease) in cash and cash equivalents for the period | (638 | ) | 448 | 74 | (58 | ) | ||||||||||||
| Cash and cash equivalents, beginning of period | 1,705 | 545 | 993 | 1,051 | ||||||||||||||
| Cash and cash equivalents, end of period | 1,067 | 993 | 1,067 | 993 | ||||||||||||||
| Short-term investments, end of period | 92 | 149 | 92 | 149 | ||||||||||||||
Cash, cash equivalents and short-term investments, end of period | $ | 1,159 | $ | 1,142 | $ | 1,159 | $ | 1,142 | ||||||||||
Supplementary disclosure of cash flow information: | ||||||||||||||||||
| Interest paid on subordinated debentures, other liabilities and Canada Life Capital Securities | $ | 17 | $ | 10 | $ | 63 | $ | 39 | ||||||||||
| Income taxes paid, net of refunds | $ | (68 | ) | $ | 20 | $ | 13 | $ | 172 | |||||||||
| Canada Life Financial Corporation — 2002 Press Release | Page 15 |
SHAREHOLDER AND CORPORATE INFORMATION
Corporate Information
Canada Life Financial Corporation, established in 1999, is the holding company for The Canada Life Assurance Company, founded in 1847, and is traded on the Toronto Stock Exchange under the symbol “CL” and the New York Stock Exchange under the symbol “CLU”. Canada Life Financial Corporation has total consolidated assets under administration in excess of $68 billion. Headquartered in Toronto, Canada, the Company operates principally in Canada, the United Kingdom, the United States, the Republic of Ireland, and in numerous other countries.
| Corporate Address | Investor Relations | Corporate Communications | ||
| Canada Life Financial Corporation | Brian Lynch | Ardyth Percy-Robb | ||
| 330 University Avenue | Vice-President, Investor Relations | Corporate Communications | ||
| Toronto, Ontario, Canada M5G 1R8 | 330 University Avenue | Vice-President | ||
| Phone: 416-597-1456 | Toronto, Ontario, Canada M5G 1R8 | 330 University Avenue | ||
| Website: www.canadalife.com | Phone: 416-597-1440 (ext. 6693) or 416-204-2381 E-mail: investor_relations@canadalife.com | Toronto, Ontario, Canada M5G 1R8 Phone: 416-597-1440 (ext. 6104) E-mail:info@canadalife.com |
Shareholder Information
Canada Life Financial Corporation hosts a Fourth Quarter Earnings Results Conference Call at 2:30 p.m. February 5, 2003, Toronto time. Members of the media are welcome to audit the call. In Toronto, the number is 416-405-9328. Toll free, North America, the number is 800-387-6216. Participants are asked to provide their name, location and organization to the operator. A playback of this call is available after 5:00 p.m. February 5, 2003, Toronto time until midnight, Toronto time on February 12, 2003 at 416-695-5800 (Passcode: 1353054) or toll free in North America at 800-408-3053 (Passcode: 1353054).
The call is also made available to listeners live over the internet through Canada Life’s web site. Go towww.canadalife.com/Investor and click on “Presentations”. This web cast is archived and available on the web site.
Additional information is also available on the Canada Life web site including the Consolidated Financial Statements and Discussion of Financial Performance and Review of Operations for the year ended December 31, 2002.
Shareholder Services
Any inquiries regarding change of address, shareholder dividends, change in registration of shares, or any other shareholder administration issues should be directed to our transfer agent.
Transfer agent
| Canada | United Kingdom | United States | Republic of Ireland | |||
| Computershare Trust Company of Canada | Computershare Investor Services PLC | Computershare Investor Services, LLC | Computershare Investor Services (Ireland) Ltd. | |||
| 100 University Ave. 9th Floor Toronto, Ontario M5J 2Y1 Phone: 1-888-284-9137 | The Pavilions, Bridgwater Road, Bristol, England BS99 7NH Phone: 0870-702-0164 | P.O. Box A3504 Chicago, Illinois 60690-3504 Phone: 1-888-284-9137 | Heron House, Corrig Road, Sandy Ford Industrial Estates, Dublin 18 Phone: 01-216-3100 | |||
| E-mail: canadalife@computershare.com | E-mail: canadalife@computershare.com | E-mail: webqueries@computershare.com | E-mail: canadalife@computershare.com |
This press release provides management with the opportunity to discuss the financial performance and condition of the Company and, as such, may contain forward-looking statements about the Company, including its business operations and strategy and expected financial performance and condition. Statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “estimates” or negative versions thereof and similar expressions are forward-looking statements. In addition, any statement that may be made concerning future financial performance (including revenues, earnings or growth rates), ongoing business strategies or prospects, and possible future Company action, is also a forward-looking statement. Forward-looking statements are based on current expectations and projections about future events and are subject to, among other things, risks, uncertainties and assumptions about the Company, economic factors and the insurance industry generally. They are not guarantees of future performance, and the Company has no specific intentions to update these statements whether as a result of new information, future events or otherwise. Accordingly, the reader is cautioned against undue reliance on these forward-looking statements. Actual events and results could differ materially from those expressed or implied by forward-looking statements made by the Company due to, but not limited to, important factors such as general economic and market factors, interest rates, equity markets, business competition and changes in government regulations.
| Canada Life Financial Corporation — 2002 Press Release | Page 16 |
