Canada Life Financial Shareholders Approve Shareholder Rights Plan.

Business Editors

TORONTO--(BUSINESS WIRE)--April 13, 2000

(TSE:CL.) At the annual meeting held in Toronto, Canada, today, David A. Nield, CLFC's Chairman, President and CEO, reported on record financial results of the company. As well, shareholders approved the adoption of a Shareholder Rights Plan and a stock option plan.

The Shareholder Rights Plan is designed to provide directors with time to respond thoughtfully to a take-over bid with a view to maximizing shareholder value. The plan goes into effect today and will expire at the conclusion of CLFC's third annual meeting in 2002, unless the term of this plan is extended with shareholder approval.

David Nield, said in his speech to shareholders, "The financial services crystal ball is somewhat cloudy when it comes to merger and acquisition activity. However, we regard our ability to acquire and integrate acquisitions profitably as a distinguishing core competency of Canada Life. We plan to be an acquirer."

The company reported record earnings for the year ended December 31, 1999 of C$320 million, an increase of C$50 million or 18.5% above the same period in 1998. Return on equity was 11.6%.

Mr. Nield said, "Our return on equity has increased substantially over the past five years and we expect it to be 13% to 14% during 2001."

"We are pleased with our share performance in what has been a difficult market for financial stocks. We are confident in our strategy and we are determined to continue to bring you exceptional results," he added.

Canada Life Financial Corporation also reported that total assets under administration have grown to more than C$55 billion in 1999, with a compound growth rate of more than 16% annually over the past three years. Total premium income, including Segregated Funds, was C$7.6 billion, up 24% over the C$6.1 billion in 1998. Both are records for the company.

The two most significant events affecting the company in 1999 were the acquisition of most of the Crown Life Insurance Company's operations effective January 1, 1999, and the demutualization of The Canada Life Assurance Company on November 4, 1999.

The Crown Life acquisition significantly increased the company's Canadian and U.S. operations and its presence in Western Canada. It has also offered the company new opportunities by giving it entry into the reinsurance business as well as new markets in several international locations.

The launch of Kanetix, an on-line service for consumers, was cited as an example of the commitment that Canada Life has made to increasing distribution alternatives and improving customer service. Nield described the new company as "an aggregator, a distribution company that gives customers access to other companies' rates and product information. In this way Kanetix adds value both to consumers and to other companies listed on the site."

The Canada Life Assurance Company was founded in 1847, in Hamilton, Ontario, and is the oldest Canadian life insurance company and one of the largest Canadian life insurers, based on consolidated premium income and assets. Headquartered in Toronto, Canada, the company has total assets under administration in excess of $55 billion and operates across Canada, the United States, Ireland and the United Kingdom, with recent acquisitions and joint ventures in India, South America, Hong Kong, Macau, Bahamas, Cuba, the Cayman Islands, Bermuda and several U.S. territories. Canada Life Financial, founded in 1999, is the holding company for The Canada Life Assurance Company and is traded on the Toronto Stock Exchange under the symbol "CL."

All dollars stated are in Canadian funds.