(November 8 – 12:35 ET) -Canada Life Financial Corp. is reporting improved earnings for the third-quarter ending September 30. The life insurance company is reporting a 20% increase in net income, up $17 million over the same quarter last year to reach $100 million.

This was also an increase of 10% over the second quarter of 2000. For the nine months ended September 30, net income of $262 million was up $42 million or 19% over the same period in the prior year.

Canada Life says the increase was due primarily to strong investment income in Canada and Ireland, favourable experience in the U.S. business acquired from Crown Life, and reserve strengthening in the United Kingdom in 1999, which did not recur in 2000.

Total general and segregated fund premiums of $1,903 million for the third quarter increased by $213 million or 13% from the prior year. General fund premium income of $1,192 million for the third quarter was up by $18 million or 2% from the prior year. Seg fund premiums of $711 million for the third quarter increased by $195 million or 38% from 1999, as consumer preference continued to shift to equity based products.

Earnings per share for the third quarter were 62¢ compared with pro forma earnings per share of 52¢ for the same period last year. For the nine months ended September 30, earnings per share reached $1.63, up from $1.37 pro forma earnings per share for the same period last year. Return on shareholders’ equity for the 12 months ended September 30 was 12.5%, up from 11.4% in 1999.

“Canada Life’s solid financial performance is driven by our continued commitment to grow the business profitably — organically, supplemented by acquisitions, joint ventures and other networking arrangements. Diversification in terms of geography, product and distribution is key to this strategy,” said David Nield, chairman, president and CEO.

General fund assets of $32,519 million as at the end of the third quarter increased by $1,192 million from the same date last year despite the strengthening of the Canadian dollar against certain foreign currencies, which reduced assets by $455 million.

Segregated fund assets of $23,026 million as at the end of the third quarter were up $3,366 million or 17% from the prior year, with strong sales growth more than offsetting foreign currency exchange impacts.

At its meeting today, the Board of Directors approved a quarterly dividend of 12¢ a common share, payable December 29, 2000 to shareholders of record at the close of business on November 24.
-IE Staff