(February 7 – 16:00 ET) – Canada Life Financial Corp. is reporting improved earnings for 2000. The insurer says net income attributable to shareholders was $385 million in 2000, up $64 million or 20% over 1999. Earnings per share reached $2.40 for the year.

For the quarter ended December 31, shareholders’ net income reached $123 million, up $22 million or 22% over the same quarter last year and up 23% over the third quarter of 2000. Return on shareholders’ equity was 13.% for the year, up from 11.6% in 1999.

At its meeting today, the company’s board approved an increase in the quarterly dividend to 13¢ per common share, payable March 30.

According to the company, premium growth, successful integration of past acquisitions, solid investment performance and generally favourable mortality experience contributed positively to net income growth in 2000

“Our strong financial performance in 2000 demonstrates the success of our corporate commitment to grow the business through disciplined diversification,” said David Nield, chairman, president and CEO.

One-time benefits to net income this quarter included an after-tax gain of $18 million on the sale of Canada Life Casualty Insurance Co., and the after-tax impact of $30 million arising from the reduction of actuarial liabilities in Canada relating to improvements in the company’s asset and liability matching program.

These benefits were offset by one-time charges of $16 million for a reserve for integration expenses associated with growth in the company’s wealth management business in Canada and $31 million for the impact of a writedown of the company’s future tax asset following proposed income tax rate changes in Canada.

For the year, general and segregated funds premiums reached $8,368 million, up $810 million or 11% over 1999. The increase was primarily a result of strong consumer demand for equity based products.

Total assets under administration grew to $63 billion at December 31, up 14% over December 31, 1999. The growth is mainly attributable to the $5 billion of new assets from the acquisition of the group savings business of TD Bank Financial Group and the acquisition of the Confederation Life annuity business.
-IE Staff