Canada Life Financial to Continue Providing Shareholders With Excellent Returns.

Business Editors

TORONTO--(BUSINESS WIRE)--April 12, 2001

(NYSE:CLU)(TSE:CL.)

Canada Life Financial Corporation ("the company") held its Annual General Meeting today at the company's offices.

"2000 was a very successful year for Canada Life. We delivered on our financial and operational commitments of profitable growth, creating value for our shareholders and satisfying the needs of our customers. At the same time, we saw our stock price rise 87 per cent over the 12-month period," David A. Nield, Canada Life's Chairman, President and Chief Executive Officer told shareholders.

Financial highlights include: return on shareholders' equity (ROE) reached 13 per cent, up from 11.6 per cent in 1999; premiums for general and segregated funds combined increased to $8.4 billion, up 11 per cent from 1999; shareholders' net income rose to $385 million, up 20 per cent from the previous year; and assets under administration rose to $63.1 billion, up 14 per cent from 1999.

Last year, a target was set to achieve ROE of 13 to 14 per cent by year-end 2001. The goal was achieved one year ahead of schedule. Over the past five years the company has realized a 17 per cent compound annual growth in revenues, and a 15 per cent compound annual growth in earnings.

In Canada, there has been considerable discussion of Bill C-8, financial services reform legislation, Nield said. Canada Life currently must be "widely held", meaning no one can own more than 10 per cent of the company's stock. Assuming Bill C-8 is adopted, someone could own 65 per cent of Canada Life stock, and in some cases more, he told shareholders.

"The effective date for the Act, January 2002, has fuelled interest in us as a takeover candidate. We are not distracted by the rumors. We remain absolutely committed to our strategic direction and focus. We intend to grow, to prosper, and to continue providing shareholders with an excellent return on their investment," Nield said.

Nield commented on Canada Life's relatively new investments in Brazil and Germany, and said that "they have large growth potential... we're optimistic about their future."

Technology is also an important investment for the future as the company moves towards Internet-based transactions for self-service by a wider variety of clients - individual and group, plan member and sponsor. Going forward, Nield said, the company's focus will continue to be e-business, ease of doing business and investing in new technologies.

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". The Canada Life Assurance Company, Canada's first domestic life insurance company founded in 1847, has total assets under administration in excess of $63 billion. Headquartered in Toronto, the Company operates across Canada, the United States, the Republic of Ireland, the United Kingdom, Brazil, Germany, Hong Kong and the Caribbean.