Canada Life Financial Corp. is reporting reduced third quarter earnings for the third quarter ended September 30.
Shareholders’ net income was $90 million, or 56¢ per share, before a provision of $15 million, net of tax, related to expected claims arising from September 11, in the United States.
This compares with shareholders’ net income of $100 million, or 62¢ per share, in the same quarter last year.
Shareholders’ net income for the quarter, including this provision, was $75 million or 47¢ per share.
Despite the impact of the provision and the ongoing effects of market volatility, shareholders’ net income for the nine months ended September 30 was $265 million, and ahead of the same period in the prior year.
Return on shareholders’ equity for the 12 months ended September 30, was 12.1%, down from the 12.5% reported for the 12 months ended September 30, 2000.
At its meeting today, the Board of Directors approved a quarterly dividend of 13¢ per common share.
The company says the impact of falling global equity has reduced third quarter earnings by $45 million, but despite the drop strong business growth continued.
Total premiums and deposits for the quarter grew to $2,674 million, an increase of 20%. At the same time, expenses during the quarter as a percentage of premiums and deposits dropped to 11.3% from 12.9% in the same quarter last year.
Assets under administration were $62,494 million as at September 30, an increase of $4,040 million or 7% over the same date last year.
Canada Life reports lower third-quarter earnings
Takes $15 million provision for expected Sept. 11 claims
- By: IE Staff
- November 7, 2001 November 7, 2001
- 12:20