(August 9) – Canada Life Financial Corp. is reporting a 20% increase in net income for the second quarter ending June 30. The recently demutualized insurance company says its net income has reached $91 million.
In a statement, the company said the increase is due mainly to favourable mortality experience in annuities and group insurance in Canada, and ongoing reduction in distribution expenses in the Canadian division. Favourable claims experience in the general insurance business in Canada, and improved profits from policies in force in the United Kingdom also helped.
Earnings per share for the second quarter were 57¢ compared with pro forma earnings per share of 47¢ for the same period last year.
Total general and segregated fund premiums of $2,256 million for the second quarter increased by $396 million, or 21% from the prior year. Seg fund premiums reached $1,103 million for the second quarter jump of 96% from 1999, as Canadian and U.K. consumers shifted savings into this product.
Return on shareholders’ equity for the 12 months ended June 30, was 12.3%, up from 10.6% in 1999. General fund assets at end to the quarter were $31,355 million, up $787 million from the same date last year.
“We are very pleased with the continued growth in earnings, premiums and return on equity we have experienced since Canada Life’s conversion from a mutual to a public company in November 1999,” said David Nield, Chairman, President and CEO.
“At this point, we are well positioned to take advantage of the opportunities available in the financial services sector in our global markets. An important event in this regard is our recent launch of operations in Germany, marking our first venture in continental Europe,” said Nield.
On July 24, Canada Life Europe Ltd. commenced business in Cologne, Germany, introducing two highly innovative pension and disability products to that market.
At its meeting today, Canada Life’s board of directors approved a quarterly dividend of 12¢ a common share.
-IE Staff