DBRS Confirms Canada Life Financial Corp at Pfd-1 (low)n

Dominion Bond Rating Service (“DBRS”) has today confirmed the above ratings of The Canada Life Assurance Company and its parent, Canada Life Financial Corporation (“Canada Life” or the “Company”) as indicated above. It has also confirmed the rating for Canada Life Capital Trust.

With the integration tasks mostly accomplished, including the sale of the U.S. group life and health business, the international businesses rationalized, and the transfer of the Canadian group life and health and group savings businesses to parent company The Great-West Life Assurance Company (“Great-West”) and affiliate company London Life Insurance Company (“London Life”), Canada Life is now well-positioned to grow its operations and improve profitability. The integration has gone well, and Canada Life is now better focused in its key markets including individual life insurance, creditor insurance, living benefits, and segregated funds in Canada; life reinsurance in the U.S.; and group life, payout annuities, and various asset accumulation product segments in Europe.

The Europe/Reinsurance segment is significant for Canada Life, representing 58% of pre-tax income in the first half of 2005. Continued favourable growth in European operations can be expected, with the focus on its strong market niche positions and expansion of distribution.

In Canada, the Company is able to compete effectively in the mature and very competitive life insurance market, with its competitive products, significant scale, and strong distribution. Together with Great-West and London Life, the Company is also a leading provider of segregated funds in Canada. The Company’s ratings are based on the strength of the parent Great-West.

DBRS has published a full report providing additional analytical detail on this rating action. Click on the link below for the report or contact us at: info@dbrs.com.

Notes:
y - designates hybrid instrument.
n - This security is non-cumulative.