(April 27 – 13:40 ET) – Great-West Lifeco Inc. is reporting net income for the first quarter of 2000 of $141 million or $0.38 per share. That’s up 18% from $119 million or $0.32 per share for 1999.
Net income attributable to common shareholders before amortization of goodwill was $157 million. The return on common shareholders’ equity was 17.5% for the twelve months ended March 31, 2000.
Total premiums and deposits up 34% reflecting significant increases in sales of investment related products, as well as increases in self-funded premium equivalents primarily related to recent U.S. business acquisitions. Total assets under administration increased 8% to $90.3 billion.
Net income from Canadian operations, for the first quarter of 2000, attributable to common shareholders was $58 million, up from $45 million in 1999.
“We’re pleased with the strong sales across all our product lines, and with the continued strong earnings growth in the first quarter,” says Raymond L. McFeetors, President & Chief Executive Officer, Great-West Life.
The 45% increase in total premium income and deposits for the first quarter of 2000 compared to a year ago was made up of growth in premiums for life insurance, guaranteed annuities and insured health products of 3%, which was primarily attributable to the group insurance line of business. Fee income increased 31% in the first quarter of 2000 compared to 1999, mainly due to increases in segregated funds assets.
Total assets under administration increased $3.9 billion or 9% to $50.0 billion at March 31, 2000 when compared to a year ago. Segregated funds assets increased 32% to $17.7 billion and general funds assets decreased slightly, reflecting continuing consumer preference for segregated funds.
At its meeting today, the Board of Directors approved a quarterly dividend of $0.155 per share on the common shares of the Company payable June 30, 2000 to shareholders of record at the close of business June 16, 2000.
-IE Staff