Great-West Lifeco subsidiary acquires annuity business in the United Kingdom

WINNIPEG, May 12, 2005 – Great-West Lifeco today announced that its United Kingdom subsidiary, Canada Life Limited, has reached an agreement to acquire the payout annuity business of Phoenix and London Assurance Limited, a unit of the Resolution Life Group in the United Kingdom.

The block of business includes approximately 58,000 annuity policies, almost doubling Canada Life Limited’s current annuity business. At year-end 2004, the value of the assets and liabilities was pnds stlg 2.18 billion ($5.1 billion Cdn). The actual value of the transaction will depend on the asset values at the date of closing. The transaction is expected to be accretive to Lifeco earnings in 2005 and subsequent years.

“Canada Life holds a strong position in the payout annuity market. This acquisition advances our strategy to capitalize on the company’s position in core European markets,” said Raymond L. McFeetors, President and Chief Executive Officer of Lifeco.

The Company will begin to assume the risk effective July 1, 2005. Final closing is expected to be in the 4th quarter of this year, subject to regulatory and legal approvals.

Great-West Lifeco Inc. (TSX: GWO) is a financial services holding company with interests in the life insurance, health insurance, retirement savings and reinsurance businesses. The Company has operations in Canada and internationally through The Great-West Life Assurance Company, London Life Insurance Company and The Canada Life Assurance Company, and in the United States through Great-West Life & Annuity Insurance Company. Lifeco and its companies have more than $167 billion in assets under administration. Lifeco is a member of the Power Financial Corporation group of companies.