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Great-West Reports Lower Third-Quarter Net Income

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NU Online News Service, Nov. 1, 2:03 p.m. – Great-West Lifeco Inc., Winnipeg, Manitoba, is reporting the equivalent of $83 million in net income in U.S. currency on $2.5 billion in revenue, compared with $114 million in net income on $2.5 billion in revenue for the third quarter of 2000.

Operating income fell to $160 million, from $220 million.

The latest income statement includes $46 million in costs related to the Sept. 11 attacks.

The figures are based on an exchange rate of $1 Canadian=63.29 cents for the third quarter, and an exchange rate of $1 Canadian=66.6 cents for the third quarter of 2000.

Great-West, an affiliate of Power Corp. of Canada, Montreal, sells life insurance, annuities, group health insurance and related products.

Sales of individual products were soft, but prices for group products were firming, and persistency rates for most products were high, Great-West says.

But William McCallum, president of Great-West, emphasizes the difficulty of commenting on the quarter in a statement for shareholders that accompanies the earnings release.

“Any comments I would make concerning the quarter are clearly overshadowed by the tragedy of September 11 and the chain of events that followed,” McCallum says.”We were relieved that none of our New York-based employees suffered physical injury. We were saddened to realize that all of our customers were not so fortunate. Both the country and your company are exhibiting great resilience as we move forward with ?business as close to usual’ as possible.”