SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): April 27, 1999
Great-West Life & Annuity Insurance Company
(Exact name of registrant as specified in its charter)
Colorado 333-01173 84-0467907
- ------------------------------- ----------------------------- -------------------------------
(State or other jurisdiction (Commission File Number) (IRS Employer Identification
of incorporation) Number)
8515 East Orchard Road
Englewood, Colorado
80111
- ----------------------------------------- ---------------------------------------------
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (303) 689-3000
Item 5. Other Events
On April 27, 1999, Great-West Life & Annuity Insurance Company
issued a press release announcing its financial results for the first quarter of
1999. A copy of such press release is filed herein as Exhibit 99.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
(c) Exhibits
99. Copy of Press Release of Great-West Life & Annuity Insurance
Company, dated April 27, 1999.
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
By: /s/ Mitchell T.G. Graye
Mitchell T.G. Graye
Executive Vice President and Chief Financial
Officer
Dated: April 27, 1999
EXHIBIT 99
FOR IMMEDIATE RELEASE
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY REPORTS FIRST QUARTER RESULTS
DENVER, Colo., April 27, 1999 - Great-West Life & Annuity Insurance
Company has reported net income of $45.4 million for the first quarter of 1999,
compared to $46.1 million for the first quarter of 1998. The decrease includes
net realized capital losses of $6.0 million in the first quarter of 1999
compared to capital gains of $14.0 million in the first quarter of 1998, which
more than offset improved morbidity and increased fee income in the Employee
Benefits and Financial Services segments. Total revenues increased $138.9
million or 25.6% to $681.9 million when compared to the first quarter of 1998.
Part of this increase was due to the acquisition by the Company in July 1998 of
Anthem Health & Life Insurance Company ("AH&L"). Excluding the AH&L acquisition,
total revenues increased by $11.9 million or 2.2% when compared to the first
quarter of 1998. The growth in revenues was comprised of increased premium
income of $129.5 million ($110.1 million of which was attributable to AH&L),
increased fee income of $36.8 million ($16.2 million of which was attributable
to AH&L), decreased net investment income of $7.4 million and the change in
realized gains and losses on investments noted above. Total benefits and
expenses increased $135.6 million or 28.5% to $611.1 million in the first
quarter of 1999 when compared to the first quarter of 1998. Excluding the AH&L
acquisition, total benefits and expenses increased by $1.7 million or 0.4% in
the first quarter of 1999 when compared to the first quarter of 1998.
Total assets at the end of the first quarter of 1999 were $25.2 billion
compared to $25.1 billion at year-end 1998. Separate account assets, included in
total assets, were $10.6 billion at March 31, 1999 compared to $10.1 billion at
December 31, 1998.
Summary financial information for the first quarter of 1999 is attached.
Great-West Life & Annuity Insurance Company has approximately 6,600
employees and provides a full range of group life, health and financial products
to more than 3.6 million Americans. The Denver-based company also administers
tax-qualified annuities for public/non-profit pension customers.
Great-West Life & Annuity Insurance Company is an indirect subsidiary of
Great-West Lifeco Inc. Great-West Lifeco Inc. is a financial services holding
company with interests in the life insurance, health insurance, retirement
savings, specialty reinsurance and general insurance businesses, primarily in
Canada and the United States. Its subsidiary, The Great-West Life Assurance
Company, serves the financial security needs of more than 13 million people
through its Canadian operations and London Insurance Group in Canada, and
through Great-West Life & Annuity Insurance Company in the United States.
Great-West Lifeco Inc. is a member of the Power Financial Corporation group of
companies.
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
CONSOLIDATED STATEMENTS OF INCOME
FOR THE THREE MONTHS ENDED MARCH 31, 1999
(UNAUDITED)
(000's)
- ---------------------------------------------------------------------------------------------
-----------------------------
YEAR-TO-DATE
-----------------------------
1999 1998
----------- ------------
REVENUES:
Premium and fee income 471,790 305,438
Net investment income 216,113 223,534
Realized gains (losses) on investments (6,043) 13,973
----------- ------------
681,860 542,945
BENEFITS AND EXPENSES:
Paid or credited to policyholder and 408,774 326,871
beneficiaries
including policyholder dividends and
experience
refunds
Commissions 45,034 27,482
Operating expenses 150,122 115,626
Premium taxes 7,138 5,539
----------- ------------
611,068 475,518
INCOME FROM OPERATIONS BEFORE
INCOME TAXES 70,792 67,427
PROVISION FOR INCOME TAXES
Current 15,854 11,940
Deferred 9,534 9,352
----------- ------------
25,388 21,292
----------- ------------
NET INCOME $45,404 $46,135
=========== ============
Contact: Mitchell T. G. Graye, Executive Vice President and Chief Financial
Officer, (303) 689-6770.