(July 27 – 14:45 ET) – Great-West Lifeco Inc. is reporting a 19% increase in net income for the first six months of 2000. The insurance holding company says net income climbed to $305 million or 81¢ a share. Net income attributable to common shareholders before amortization of goodwill was $338 million. The return on common shareholders’ equity was 17.9% for the twelve months ended June 30, 2000.
For the second quarter, net income was $164 million or 43¢ a share, compared with $137 million or 37¢ a share in 1999.
Total premiums and deposits were up 34% over the first six months. Great-West says the growth reflects significant increases in sales of investment- related products, as well as increases in self-funded premium equivalents. Total assets under administration increased 11% to $92.2 billion.
The quarterly dividend declared for September 30 increased to 17¢ a common share for September 30.
Great-West Lifeco’s subsidiary, The Great-West Life Assurance Co., reports that net income for the first six months of 2000 reflects significant increases for both Canadian and United States operations, compared to 1999.
“Our strategy is to supplement our business through selective agreements that allow us to build on or acquire specialized knowledge and expertise,” says Raymond L. McFeetors, President & CEO of Great-West Life Assurance Co. “Our recent initiatives with leading financial organizations have enlarged our distribution network for core product lines, given our clients increased access to more of Canada’s leading financial services products, and enhanced our ability to provide Canadians with full financial security planning.”
-IE Staff