Credit ratings agency Standard & Poor’s says that Great-West Lifeco Inc.’s US$132 million pretax special charge will not affect the ratings or outlook on the company.

In addition, the ratings and outlook on Great-West Life & Annuity Insurance Co. (U.S.) (GWL&A) will not be affected.

Great-West Lifeco has announced a one-time charge to earnings for the second quarter ended June 30, 2001, of US$132 million related to GWL&A’s 1998 acquisition of Anthem Health & Life Insurance Co.

Great-West Lifeco disclosed that following the acquisition and assimilation of Anthem’s business into GWL&A’s internal billing and claims systems, conversion difficulties created premium and claims receivable issues for that block.

The special charge taken by Great-West Lifeco reflects the estimated historical issue and a prospective charge related to inadequate pricing. Standard & Poor’s expects that both capital and earnings targets will remain in line with rating expectations because this one-time charge will be offset by continued earning strength in the other Canadian and U.S. business segments, which is evidenced by the strong earnings reported by Great-West Lifeco at June 30, 2001.