Information and Non-GAAP Financial Measures at the end of this Release.

TSX:GWO

WINNIPEG, Nov. 5, 2009 /CNW/ - Great-West Lifeco Inc. (Lifeco) has reported net income attributable to common shareholders of $445 million for the three months ended September 30, 2009, compared to $436 million in 2008. On a per common share basis, this represents $0.471 per common share for the three months ended September 30, 2009, compared to $0.487 per common share for 2008.

For the nine months ended September 30, 2009, net income attributable to common shareholders was $1,184 million, compared to $1,493 million a year ago. On a per common share basis, this represents $1.254 per common share for the nine months ended September 30, 2009, compared to $1.717 per common share for 2008.

Net income of $1,493 million for the nine months ended September 30, 2008 represents adjusted net income from continuing operations and, as such, excludes certain items as described in the United States section of this Release. Net income attributable to common shareholders, as reported, was $2,303 million, or $2.575 per common share for the nine months ended September 30, 2008.

Although conditions have generally improved in 2009, the 2009 results compared to 2008 reflect the weaker global equity and credit market environment that has existed since 2007. A decline in the value of publicly traded and other investment securities through September 30, 2009, compared to 2008, has lowered the aggregate market value of assets invested in the Company's segregated and mutual funds. In the third quarter of 2009, the impact of lower equity markets on fee income and actuarial liabilities was modest, resulting in a decrease in net income attributable to common shareholders of $0.01 per common share compared to the third quarter of 2008. Great-West Life did not need to establish any actuarial reserves with respect to segregated fund guarantees at September 30, 2009.

At September 30, 2009, provisions for future credit losses in actuarial liabilities totaled $2,492 million, compared to $2,514 million at June 30, 2009. In the quarter, the Company increased provisions by $112 million almost entirely as a result of credit rating downgrade activity in the quarter. This reduced net income attributable to common shareholders by $86 million after-tax, or $0.09 per common share after adjusting for pass-through features and minority interests.

At September 30, 2009, consolidated invested assets were $103.7 billion. The gross book value of impaired investments at that date was $400 million, against which the Company had recorded cumulative impairment provisions of $243 million. The aggregate of the $243 million impairment provisions against invested assets and the $2,492 million provision for future credit losses in actuarial liabilities represented 2.9% of bond and mortgage assets at September 30, 2009.

Consolidated assets under administration at September 30, 2009 were $454.9 billion, up $12.9 billion from December 31, 2008.

Highlights

- Sales in Canada of individual life insurance products in the quarter

were 15% higher than 2008 owing to a 29% increase in sales of

participating whole life insurance.

- In Canada, the Company launched new segregated fund products in

October, including a Guaranteed Minimum Withdrawal Benefit (GMWB)

product.

- The Company completed the transfer of assets from the Fidelity

Investments Canada group retirement services business which it

acquired in September, 2009. The total assets transferred from

Fidelity were $1.4 billion.

- Sales in the U.S. Financial Services business increased 25% in the

third quarter compared to 2008. Sales of public/non-profit plans were

very strong in the quarter.

- In Putnam, net asset flows in the third quarter improved by

US$1.5 billion compared to 2008.

- The Company declared a quarterly common dividend of $0.3075 per

common share payable December 31, 2009, unchanged from the previous

quarter. Dividends paid on common shares for the nine months ended

September 30, 2009 were 3.4% higher than a year ago.

- The Company's capital position remains very strong. Lifeco's

Canadian operating subsidiary, Great-West Life, reported a Minimum

Continuing Capital and Surplus (MCCSR) ratio of 200% at September 30,

2009, which did not include any benefit from the $1,230 million of

common and preferred share capital that was raised by Lifeco in the

fourth quarter of 2008, or the $170 million of perpetual preferred

share capital issued in October 2009.

OPERATING RESULTS

Consolidated net income for Lifeco is comprised of the net income of The Great-West Life Assurance Company (Great-West Life), Canada Life Financial Corporation (CLFC), London Life Insurance Company (London Life), Great-West Life & Annuity Insurance Company (GWL&A), and Putnam Investments, LLC (Putnam), together with Lifeco's corporate results.

CANADA

Net income attributable to common shareholders for the third quarter of 2009 was $212 million compared to $251 million in 2008. Included in the third quarter results in 2009 was the mark to market adjustment on the Company's preferred shares Series D and Series E, which reduced net income attributable to common shareholders by $15 million. For the nine months ended September 30, 2009, net income attributable to common shareholders was $637 million compared to $775 million in 2008.

Investment impairment charges and provisions for future credit losses reduced net income attributable to common shareholders by $5 million in the quarter.

Total sales for the nine months ended September 30, 2009 were $6,610 million compared to $6,148 million in 2008. Sales of protection products increased over the nine months ended September 30, 2008 with Individual Life sales up 10%, while sales of Group insurance products decreased 11% over 2008.

Total assets under administration at September 30, 2009 were $113.4 billion, compared to $103.9 billion at December 31, 2008.

UNITED STATES

Net income attributable to common shareholders for the third quarter of 2009 was $68 million compared to $43 million in 2008. For the nine months ended September 30, 2009, net income attributable to common shareholders was $192 million compared to $227 million in 2008.

Investment impairment charges and provisions for future credit losses reduced net income attributable to common shareholders by $9 million in the quarter.

Net income of $227 million for the nine months ended September 30, 2008 excludes the gain on sale of GWL&A's health care business of $649 million and income from discontinued operations of $43 million as well as two non-recurring items that contributed $118 million to earnings during the first quarter of 2008.

Total sales for the nine months ended September 30, 2009 were $22.9 billion compared to $34.3 billion in 2008.

Total assets under administration at September 30, 2009 were $274.1 billion compared to $271.1 billion at December 31, 2008. Included in assets under administration at September 30, 2009 were $121.5 billion of mutual fund and institutional account assets managed by Putnam, compared to $129.0 billion at December 31, 2008.

EUROPE

Net income attributable to common shareholders for the third quarter of 2009 was $167 million compared to $140 million in 2008. For the nine months ended September 30, 2009, net income attributable to common shareholders was $364 million compared to $502 million in 2008.

Investment impairment charges and provisions for future credit losses reduced net income attributable to common shareholders by $72 million in the quarter.

Total sales for the nine months ended September 30, 2009 were $2,986 million compared to $3,655 million in 2008.

Total assets under administration at September 30, 2009 were $67.4 billion, compared to $67.0 billion at December 31, 2008.

CORPORATE

Corporate net income for Lifeco attributable to common shareholders was a charge of $2 million for the third quarter of 2009 and a charge of $9 million for the nine months ended September 30, 2009, compared to net income of $2 million for the third quarter of 2008 and a charge of $11 million for the nine months ended September 30, 2008.

QUARTERLY DIVIDENDS

At its meeting today, the Board of Directors approved a quarterly dividend of $0.3075 per share on the common shares of the Company payable December 31, 2009 to shareholders of record at the close of business December 3, 2009.

In addition, the Directors approved quarterly dividends on:

- Series D First Preferred Shares of $0.293750 per share;

- Series E First Preferred Shares of $0.30 per share;

- Series F First Preferred Shares of $0.36875 per share;

- Series G First Preferred Shares of $0.325 per share;

- Series H First Preferred Shares of $0.30313 per share;

- Series I First Preferred Shares of $0.28125 per share;

- Series J First Preferred Shares of $0.3750 per share; and

- Initial dividend on Series L First Preferred Shares of $0.34829 per

share

all payable December 31, 2009 to shareholders of record at the close of

business December 3, 2009.

For purposes of the Income Tax Act (Canada), and any similar provincial legislation, the dividends referred to above are eligible dividends.

GREAT-WEST LIFECO

Great-West Lifeco Inc. (TSX:GWO) is a financial services holding company with interests in the life insurance, health insurance, retirement savings, investment management and reinsurance businesses. The Company has operations in Canada, the United States, Europe and Asia through The Great-West Life Assurance Company, London Life Insurance Company, The Canada Life Assurance Company, Great-West Life & Annuity Insurance Company and Putnam Investments, LLC. Lifeco and its companies have nearly $455 billion in assets under administration and are members of the Power Financial Corporation group of companies.

Cautionary note regarding Forward-Looking Information

This release contains some forward-looking statements about the Company, including its business operations, strategy and expected financial performance and condition. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as "expects", "anticipates", "intends", "plans", "believes", "estimates" or negative versions thereof and similar expressions. In addition, any statement that may be made concerning future financial performance (including revenues, earnings or growth rates), ongoing business strategies or prospects, possible future Company action including statements made by the Company with respect to the expected benefits of acquisitions or divestitures are also forward- looking statements. Forward-looking statements are based on current expectations and projections about future events and are inherently subject to, among other things, risks, uncertainties and assumptions about the Company, economic factors and the financial services industry generally, including the insurance and mutual fund industries. They are not guarantees of future performance, and actual events and results could differ materially from those expressed or implied by forward-looking statements made by the Company due to, but not limited to, important factors such as sales levels, premium income, fee income, expense levels, mortality experience, morbidity experience, policy lapse rates and taxes, as well as general economic, political and market factors in North America and internationally, interest and foreign exchange rates, global equity and capital markets, business competition, technological change, changes in government regulations, unexpected judicial or regulatory proceedings, catastrophic events, and the Company's ability to complete strategic transactions and integrate acquisitions. The reader is cautioned that the foregoing list of important factors is not exhaustive, and there may be other factors, including factors set out under "Risk Management and Control Practices" in the Company's 2008 Annual Management's Discussion and Analysis and any listed in other filings with securities regulators, which are available for review at www.sedar.com. The reader is also cautioned to consider these and other factors carefully and to not place undue reliance on forward-looking statements. Other than as specifically required by applicable law, the Company has no intention to update any forward-looking statements whether as a result of new information, future events or otherwise.

Cautionary note regarding Non-GAAP Financial Measures

This release contains some non-GAAP financial measures. Terms by which non-GAAP financial measures are identified include but are not limited to "earnings before restructuring charges", "adjusted net income", "adjusted net income from continuing operations", "net income - adjusted", "earnings before adjustments", "constant currency basis", "premiums and deposits", "sales", and other similar expressions. Non-GAAP financial measures are used to provide management and investors with additional measures of performance. However, non-GAAP financial measures do not have standard meanings prescribed by GAAP and are not directly comparable to similar measures used by other companies. Please refer to the appropriate reconciliations of these non-GAAP financial measures to measures prescribed by GAAP.

Further information

Selected financial information is attached.

Great-West Lifeco's third quarter conference call will be held Thursday, November 5 at 3:30 p.m. (Eastern). The call can be accessed through www.greatwestlifeco.com or by phone at:

- Participants in the Toronto area: 416-340-2220

- Participants from North America: 1-866-226-1798

- Participants from Overseas: Dial international access code first,

then 800-2787-2090

A replay of the call will be available from November 5 to November 12, 2009, and can be accessed by calling 1-800-408-3053 or 416-695-5800 in Toronto (passcode: 4003484 followed by the number sign).

Additional information relating to Lifeco, including the most recent interim unaudited financial statements, interim Management's Discussion and Analysis (MD&A), and CEO/CFO certificates will be filed on SEDAR at www.sedar.com.

FINANCIAL HIGHLIGHTS (unaudited)

(in $ millions except per share amounts)

As at or for the For the

three months ended nine months ended

------------------------------------------------------

September June September September September

30, 2009 30, 2009 30, 2008 30, 2009 30, 2008

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Premiums and

deposits:

Life insurance,

guaranteed

annuities and

insured health

products $ 4,336 $ 4,664 $ 3,912 $ 13,709 $ 25,225

Self-funded

premium

equivalents

(ASO contracts) 610 639 583 1,867 1,795

Segregated funds

deposits:

Individual

products 1,236 1,699 1,982 4,193 5,771

Group products 2,325 1,823 1,140 6,844 4,125

Proprietary mutual

funds and

institutional

deposits(1) 5,045 5,140 7,794 15,465 24,209

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Total premiums and

deposits 13,552 13,965 15,411 42,078 61,125

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Fee and other income 728 666 778 2,074 2,381

Paid or credited to

policyholders 8,687 7,473 2,176 19,526 21,962

Net income-common

shareholders

Continuing

operations

- adjusted(3) 445 413 436 1,184 1,493

Discontinued

operations

- adjusted(2) - - - - 43

------------------------------------------------------

Net income

- adjusted(3) 445 413 436 1,184 1,536

Adjustments

after tax(3) - - - - 767

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Net income 445 413 436 1,184 2,303

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Per common share

Basic earnings

- adjusted(3) $ 0.471 $ 0.437 $ 0.487 $ 1.254 $ 1.717

Adjustments

after tax (3) - - - - 0.858

Basic earnings 0.471 0.437 0.487 1.254 2.575

Dividends paid 0.3075 0.3075 0.3075 0.9225 0.8925

Book value 12.21 12.65 12.70

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Return on common

shareholders'

equity (12 months):

Net income

- adjusted(3) 13.7% 14.2% 21.4%

Net income 2.4% 2.3% 27.1%

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Total assets $ 129,813 $ 131,644 $ 127,339

Segregated funds

net assets 86,640 83,192 81,916

Proprietary

mutual

funds and

institutional

net assets(4) 124,272 121,729 147,165

--------------------------------

Total assets

under

management 340,725 336,565 356,420

Other assets

under

administration(5) 114,145 105,341 107,970

--------------------------------

Total assets

under

administration $ 454,870 $ 441,906 $ 464,390

--------------------------------

--------------------------------

Share capital

and surplus $ 12,861 $ 13,270 $ 12,474

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(1) Includes Putnam Investments, LLC mutual funds and institutional

deposits, excluding Prime Money Market Fund net deposits.

(2) Represents the operating results of GWL&A's health care business,

which was sold effective April 1, 2008. Does not include the gain on

sale of the health care business.

(3) Net income, basic earnings per common share and return on common

shareholders' equity are presented on an adjusted basis, as a non-

GAAP financial measure of earnings performance, and reflect the

following items in 2008:

Refer to Annual

Per common share Financial

Net ------------------------ Statement

income In quarter Year-to-date Notes

----------------------------------------------------

Q1: Gain on

termination

of

reinsurance

agreement $ 176 $ - $ 0.197 Note 14

Reserve

strengthening

in GWL&A (58) $ 118 - (0.065) Note 2

Q2: Gain on sale

of GWL&A's

health care

business 649 649 - 0.726 Note 2

-----------------------------

$ 767 $ - $ 0.858

-----------------------------

-----------------------------

Return on common shareholders' equity is restated excluding non-

recurring items from prior periods.

(4) Excludes Putnam Prime Money Market Fund.

(5) Other assets under administration includes both retail and

institutional assets in which the Company only performs

administrative or recordkeeping type services for the end client. In

general, fee income is based on the type of services performed per

client and does not fluctuate with asset levels.