Canada Life, Ohio National Announce Strategic Alliance for Group Products.

Business Editors

CINCINNATI--(BUSINESS WIRE)--March 21, 2001

Ohio National Financial Services and The Canada Life Assurance Company (NYSE:CLU)(TSE:CL.) today announced a strategic alliance for the sale and servicing of group life and health products.

As part of the agreement, Canada Life will purchase Ohio National's existing group insurance business and make available an expanded line of group insurance products for sale by Ohio National group sales associates.

The closing, which is expected April 6, 2001, will result in a cash payment by Canada Life to Ohio National for terms which were not disclosed.

The strategic alliance between Ohio National and Canada Life includes group life and health products only. In its group operation, Ohio National offered group term life insurance, group short-term and long-term disability insurance and stop loss plans.

Group pension annuities are not affected by this agreement.

"This transaction reflects our commitment to deliver on the goals set out in our strategic direction," said Ron Beettam, Canada Life's Vice-President and Director, United States Division.

"It is another important step towards achieving our primary objective for the US Group Division to move into the top ten ancillary carriers in the United States group market."

"This agreement allows us to focus on our primary business: growing our individual life insurance and asset accumulation businesses, which includes pension and retirement plan products, individual life insurance and individual annuities," said David B. O'Maley, Ohio National's Chairman, President and Chief Executive Officer. "The group business has been a very small part of our overall operations, and it was our strategic assessment that we would be better served by concentrating our energy and resources in building our core businesses. We concluded that partnering with Canada Life provides our 2,000 employer groups and customers an important opportunity to continue their group plans with a quality group company, while continuing to work with their same sales agent. In short everyone wins.....our customers, our producers/distributors, our company, and Canada Life."

Customer service is a core value to both organizations, and plans include smooth transitions for the Ohio National employer groups to Canada Life enhanced plans and services over the next 15 months. Canada Life group products include group life, critical illness, dental, stop loss, short-term and long-term disability. Canada Life and Ohio National are working closely together to manage the process.

Additionally, Canada Life's comprehensive group portfolio of products will be made available to Ohio National group producers located throughout the United States.

Approximately 30 associates in the Cincinnati headquarters of Ohio National are involved in group operations. Employees will be offered job opportunities to support other growth areas of the financial services company, which has approximately 675 associates located at Ohio National headquarters.

The Canada Life Assurance Company, Canada's first domestic life insurance company founded in 1847, has total assets under administration in excess of $40.4 billion. Headquartered in Toronto, the Company operates across Canada, the United States, Ireland, the United Kingdom, Brazil, Germany, Hong Kong and the Caribbean. Canada Life Financial Corporation, established in 1999, is the holding company for The Canada Life Assurance Company and is traded on the Toronto Stock Exchange under the symbol "CL" and the New York Stock Exchange under the symbol "CLU".

Tracing its corporate origins to 1909, The Ohio National Life Insurance Company markets a variety of insurance and financial products in 47 states (all except Alaska, Hawaii and New York), the District of Columbia and Puerto Rico, with subsidiary operations in Chile. At year-end 2000, the company reported $9.3 billion of assets under management and $1.8 billion of revenues. Ohio National restructured under a mutual insurance holding company - Ohio National Mutual Holdings, Inc. -- in August, 1998. Ohio National Financial Services, Inc., is the organization's intermediate holding company.

Facts About the Agreement Between Canada Life and Ohio National

- Canada Life and Ohio National have announced a strategic relationship for the
purchase and servicing of group life and health products in the U.S.

- Included in the agreement is the purchase by Canada Life of the Ohio National
group insurance business. The purchase price was not disclosed.

- In 2000, Ohio National booked $40 million gross Revenue Premium or $26
million net (excluding reinsurance) Revenue Premium of Group Life, Disability
and Stop Loss products, which cover approximately 2,000 group policies. The
transition period will take approximately 15 months from the expected close of
April 6, 2001.

- The agreement allows Ohio National to provide opportunity for smooth
transition of its existing group insurance business to Canada Life and allows
Ohio National to focus on its primary operations of the sale of pension
products, individual life and individual annuity products.

- This agreement for sales and service of group products supports Canada Life's
strategy of bold growth and expansion in the U.S. through its group ancillary
benefit lines.

- Also included in the agreement is an ongoing marketing agreement for Group
Products in the United States. Canada Life will supply Ohio National's group
sales associates with a comprehensive portfolio of group products for new
sales. Ohio National group producers will be licensed to sell Canada Life group
products in the future.

- Sales of other Ohio National and Canada Life products in the U.S.

- including individual life insurance, individual annuities,

pension products and individual disability income products - are

not affected by the agreement.

- Minimal employee impact is anticipated, as Ohio National

associates currently involved in group operations will be offered

an opportunity to support other Ohio National divisions in their

Cincinnati home office. A number of comparable positions will be

created in Canada Life's U.S. Headquarters in Atlanta.