(October 25 – 09:00 ET) – Canada Life is reporting net income of $83 million for the quarter ended September 30. That’s 53¢ per share assuming the issuance of 156 million shares on demutualization.
Net income is up from the $70 million reported in the quarter last year. The $70 million figure ignores the firm’s provision for settlements in the UK. Post-demutualization pro forma shareholders’ equity book value would be $17.32 per share. The firm is expected to demutualize in early November.
The acquisition of Crown Life’s business accounts for half the total income increase. That deal finalized for a price of $163 million and $39 million worth of goodwill.
General fund and segregated fund premiums were up 12.6% year-over-year in the third quarter; with assets increasing $8.4 billion to $51.0 billion, from September 30, 1998.
Crown Life says it has completed its preparations for the year 2000, including the testing of its own contingency plans.
-IE Staff
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